A REPORT ON SUMMER INTERNSHIP AT BEHL, LAD & AL

SAYEGH- CHARTERED ACCOUNTANTS, DUBAI

Project Submitted to the

MANIPAL ACADEMY OF HIGHER EDUCATION
– DUBAI CAMPUS

In the Partial Fulfillment of the Requirement for the Degree of

BACHELOR OF COMMERCE (PROFESSIONAL)

By

RIYA TOM
REG. NO: 190201037

Under the Guidance and Supervision of

Dr. Thahani Iqbal

SCHOOL OF BUSINESS

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 MANIPAL ACADEMY OF HIGHER EDUCATION – DUBAI
CAMPUS
ACADEMIC CITY, DUBAI, UAE

CERTIFICATE

This is to certify that the summer internship report entitled, 'A report on summer internship at
BEHL, LAD & AL SAYEGH-CHARTERED ACCOUNTANTS', submitted to the
MANIPAL ACADEMY OF HIGHER EDUCATION – DUBAI CAMPUS for the award of
the degree of Bachelors of Commerce (Professional), is a record of the original work done by
Riya Tom during the period of his study in the School of Business, Manipal University - Dubai
Campus, UAE, under my supervision and guidance. The project work has not previously formed
the basis for the award of any degree, diploma, fellowship, associateship, or any other similar
title to any university candidate.

Signature of the Guide

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3
 DECLARATION

I hereby declare that matter embodied in this report entitled “A Report on Summer Internship
at Behl, Lad & Al Sayegh- Chartered Accountants” is the result of the analysis of
observations
and interviews carried out by me under the guidance of Dr. Noor Ulain Rizvi, Assistant
Professor,
School of Business, Manipal Academy of Higher Education - Dubai Campus, UAE. This project
work has not previously formed the basis for the award of any degree, diploma, fellowship,
associateship, or any other similar title to any university candidate.

Riya Tom
Reg. No.: 190201037

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 ACKNOWLEDGEMENT

It gives me immense pleasure to be associated with this project. The project was a joyous
learning process. The presentation of the report in the way required has been made possible by
the contribution made by various people.

First of all, I would like to express my gratitude to Dr. Noor Rizvi for her kind help and
encouragement. I am very thankful to her for her advice, assistance and constant support
throughout the preparation of this report.

I would also like to express my deep gratitude to Mr. Vasant lad for Giving me the opportunity
to work as an audit intern at BLS, along with Ms. Jyoti ma’am for guiding and supporting me
through my duties and all the other audit professionals at BLS for their help throughout my time
there, which even though was for a short while made it a very enriching experience.

I would also like to thank all the clients and industry experts for their time and attention spent in
providing me with supporting documents which was of significant help in getting a hands on
experience in the work environment.

Riya Tom

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 EXECUTIVE SUMMARY

This report is a detailed account of the summer internship done as a part of B. Com
(Professional) program. The following report is about my experience and findings while working
in the company. It has been divided into four sections: Introduction to the report, Industry
profile, Organization profile, Research Methodology, Analysis and Interpretation, Discussion
and Learning from the internship and lastly there is a conclusion which provides suggestions and
references of websites to complete this report.

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 TABLE OF CONTENTS
Chapter No Description Page No.

1. Introduction 8-10

2. Industry Profile 11-23

3. Organisation Profile 24-32

4. Research Methodology 33-35

5. Analysis and Interpretation 36-39

6. Learnings and Discussions 40-43

7. Conclusion 44-45

8. References 46-47

9. Appendix 48-51

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CHAPTER I - INTRODUCTION

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Introduction:
This report is about the four weeklong internship completed during the summer of 2021 at a well
established audit and assurance firm located across the UAE with the head office in the heart of
Dubai in Deira called Behl, Lad & Al Sayegh- Chartered Accountants.
The time working at the firm was a very enriching and fruitful experience with regards to being
able to gain a practical understanding of what is being taught in class. As well as also being able
to get a real life exposure to work life, interacting with people across different age groups, with
different levels of experience with varying skillsets.
The role assigned to me was to intern in the audit department, my main area of work and focus
was on the different aspects of conducting an audit.

The first few days involved gaining an insight of the way things were done in the organisation
and observing the work of the more experienced personnels in the field.

My time at the company involved reading and understanding consolidated financial statements of
the firm’s several clients ranging across different sizes and industries, understanding of the
company audit methodology, the approach and tools used in the work.

The tasks assigned to me included preparation of various documents like an audit proposal, letter
of representation, management letter, audit reports

Using excel to create financials of client companies based on the trial balance data provided by
the client after conducting adequate audit procedures and obtaining sufficient appropriate audit
evidence.
Using excel to create liquidation accounts of client companies in the process of winding up.
Using excel to create bank summary based on client bank transactions data provided by client.

I was also given the opportunity to visit a client and understand the sales and purchase validation
process conducted as a part of the verification process.

All of which were conducted while working under supervision of licensed auditors.

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Objective:
The main objective of this internship course is to gain a better understanding on how to apply
book knowledge to businesses and create value. To help students who are soon to be future
employees to be able to identify their areas of interest to work through interning for short periods
before building a career under permanent work positions

Nature of the study:

The nature of the study is mainly observational based on company data and other published data
from the company platforms and other authorized sources of information. The study also
includes aspects from the tasks assigned as part of the internship position.

Scope of the study:

The study is conducted to understand the organization structure the various services offered, the
departments and their functions and other important aspects of the organization.

Aim of the study:

Application of classroom knowledge into the real life workplace, , along with interacting and
coordinating with various other people in the industry following work ethics along the way.

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CHAPTER II- INDUSTRY PROFILE

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Introduction:
What is Accounting? (T.S. Grewal, 2002)
Accounting is a systematic process of identifying, measuring, recording, classifying,
summarising, interpreting and communicating financial information. Accounting gives
information on:
(i) The resources available
(ii) How the available resources have been employed
(iii) The results achieved
Accounting process (Gray L & Manson .S, 2011):
1. Identifying financial transactions this involves identifying which transactions are to be
recorded, which in accounting would include only those transactions and events which
are of financial nature i.e. in monetary terms.

2. Measuring the transactions identified which are measured in terms of a common

measurement unit i.e. the currency of the country.

3. Recording business transactions and events in financial terms in the journal and other
subsidiary books like cash book (cash transactions), purchases book (purchase
transactions), sales book (sales transactions) etc. depending on the nature of the
transactions.

4. Classifying (posting) into the ledger, the main book of account this involves collecting
similar transactions at one place by opening accounts in the ledger.

5. Summarizing: This involves presenting the data in an understandable and useful manner
to the users of the accounting information.

6. Analysis and Interpretation: The financial data needs to analyses and interpreted so that
the users of this data can make a proper assessment of the financial performance and
position of the business.

7. Communicating: This involves providing the accounting information to its users on a

timely basis to make it relevant to their needs to be able to make appropriate decisions.

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Branches of Accounting:
Financial Accounting: This branch is involved in the accounting of financial transactions and
events. It determines the profit earned or loss incurred during a year (statement of profit and loss)
and the financial position (statement of financial position) as at the end date of the financial
period. This type of accounting is confined to the preparation of financial statements.
Cost Accounting: This type of accounting is concerned with ascertaining the cost of products,
operations, activities of the business. The main objective is to record costs to be able to ascertain
reduce and control costs of the business.
Management Accounting: more recent type, concerned with acquiring information relating to
funds, costs, profits etc. to help the management in decision making. The main focus is on the
needs of the management.

About the industry:

The accounting industry is composed of a variety number of services including audit and
assurance, payroll, tax services, due diligence, financial planning etc. This report will mainly
focus on the audit and assurance service being the main area of work carried out as a part of the
internship.
Audit and Assurance: ( Sarah Kelani, 2020)
What is Audit and assurance?
This refers to the process of examining the financial records of a company to verify and provide
an independent opinion on the truthfulness and the fairness of the information to ensure that the
reports are accurate, free from frauds and errors to ensure their reliability to the users of the
information.
The need for these services:
The main purpose for these services are to provide an independent opinion on the subject matter
which enables the users of the information to place reliance on the subject matter so that they can
make effective and informative decisions. This process would enable the users to place
confidence on the information which is credible.
Audit regulations:
Auditors have become more serious in terms of applying professional skepticism by remaining
alert and having a constant questioning mind.
The need for audit regulations had arisen after major auditing scandals of Enron, Worldcom etc.
As a result of these happenings the following changes have been made:

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The International Audit and Assurance Standards Board (IAASB) developed the International
Standards of Auditing (ISAs) adopted worldwide maintaining uniformity.
The professional code of ethics has been implemented which is required to be followed by every
member.
Further, more actions have been taken to implement additional corporate governance
requirements to be followed strictly by the members.

Types of Audit:
The following are some of the many types of audit:
Internal Audit:
The internal auditors are involved in examining the internal operations, systems and risks their
effectiveness and efficiency. To ensure there a system of internal controls implemented within
the company capable of preventing, detecting and correcting error/fraud.
The internal auditors are employees of the organisation and are conducted on a regular basis
throughout the year.
External Audit:
The external auditors are more focused on providing an opinion on the financial records of the
company, see if they are free from material misstatements caused by fraud or error. Audit
procedures are designed to provide reasonable assurance that three are no material
misstatements.
The external auditors are independent outside third parties who conduct the audit on an annual
basis.
Forensic Audit:
This type of audit is involved in the further investigation of a fraud that has been identified by
the audit team. It involves the analysis of the financial statements to extract facts which can then
be used in the court of law. The forensic audit involves further punishment and prosecution for
the fraud or financial crime conducted.

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Audit Process (Sarah Kelani, 2020)

STEP 1:
Audit planning and preparation:
This process involves planning the audit so as to ensure that the audit will be performed in an
effective manner. This helps in reducing the risk of bad quality audit being performed to an
acceptable level.
This mainly involves understanding the entity and environment , the risks that will be faced by
the client , identifying the key risk areas , setting materiality levels to be set for the client.
An overall audit strategy is set stating the scope, timing and direction of the audit. Examples of
some things included as a part of the audit strategy include financial reporting framework to be
used, internal controls, materiality, risk assessment etc.
The audit plan is more detailed than an audit strategy including matters like the details regarding
the audit procedures and the risk assessment procedures to be performed. Th audit plan states
how the strategy is to be achieved.

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STEP 2:
Audit execution :
This involves putting the audit strategy and plan into action, This involves identifying audit risks
and business risks that may influence audit risks which could lead to material misstatements in
the Financial Statements.
The auditors give reasonable assurance that the financial statements are free from material
misstatements by evaluating the risks to see if material individually or aggregately i.e. if they can
influence the decisions of users taken based on the Financial Statements. This can be
determined based on pre designed criteria like turnover or profit before tax or by nature. The
materiality is a matter of auditor judgement.
STEP 3:
Audit reporting:
The auditors are involved in designing and performing audit procedures to be able to obtain
sufficient and appropriate audit evidence to be able to draw reasonable conclusions on the basis
of which the auditor’s opinion is formed stated within the audit report.
Examples of some audit procedures may include enquiry with third parties or confirmation of
data with the management
Examples of some audit evidences may include contracts, records and other documents etc.
These maybe performed to be able to verify the various events and transactions of the company
included as a part of the Financial statements to verify the reliability of them.

STEP 4:
Follow-up:
If the report has been modified giving a modified opinion due to either lack of sufficient
appropriate evidence or material misstatements then the auidtors would inform the management
about the deficiencies and ask them to rectify them,
Follow-up involves the auditors evaluating the adequacy, effectiveness, and timeliness of actions taken by
management on reported observations and recommendations, including those made by external auditors .

if not listened to they can inform the higher management or even the regulatory authorities.

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The Role of Accounting and Audit in the Global Economy: (Abdolmohammadi,
M. J., & Tucker, R. R. ,2002)
The world revolves around money from a basic need such as food to clothes to cars to a house
everything involves money, to be able to satisfy these needs we need businesses offering these
across different industries, no one is 100% dependent on themselves for survival. Money
circulates in the economy through these various businesses- making it a repetitive cycle of
spending and receiving money.
For the running of the day to day operations of any business there will be many transactions and
events occurring which need to be recorded and maintained to be able to track the profits and
costs , assets and liabilities of running the business to be able to ascertain the financial
performance and financial position of the business for which accounting is needed. Accounting
will help in ensuring the efficient functioning of all businesses which contribute towards the
overall economy’s performance.
Also, after the accounting process there is need to be able to monitor the performances of the
businesses since people spend their hard earned money and in order to ensure that people can
safely enter into transactions without losing out.
To be able to do this to ensure that the businesses are running in accordance to the rules and
regulations and to be able to provide reliable picture about how the businesses are actually
performing , to ensure that they run according to the best interests of all stakeholders there is a
need for audit. Thus making it a global need to ensure the smooth running of the whole
economy.

Investors are willing to make long term capital investment only if relevant and reliable
information is available reducing risk borne by them, which can be provided by audit through
which it can promote long-term capital investment.

Professional, skilled and independent auditors are key to helping investors in public markets
separate the credible managers from the charlatans. By building a basis for confidence, auditors
reduce financing costs, and contribute to an efficient allocation of capital to fuel economic
growth.

Audit ensures Investor Protection which is Critical to Efficient Capital Formation to Fund
Innovation and Entrepreneurial Risk Taking leading to the growth of financial markets and
overall growth of the economy.

With the proper assistance from a reputed Accountant and Auditor, a company can reach its full
potential, helping the economy to reach up to its full potential.

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UAE’s contribution to the Accounting and Audit industry: (Saderuddin, A., &
Barghathi, Y., 2018).
There has been significant growth in the number of businesses being set up in the Middle East.
This increase in the number of enterprises has also resulted in the demand for more reputed and
qualified Accountants and Auditors.
The following justify why there will be future growth of the accounting and audit industry in the
UAE:

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The Increasing number of Businesses coming in the country

There has been a significant increase in the number of foreign businesses that have entered the
United Arab Emirates. With so many different industries coming into the country, there is a
growing need for proper accounting and auditing firms. Having a good accountant and auditor
will provide a better understanding of the company and also help the management to make
viable strategies for the future.

The effort of the government to diversify the economy

In the last few decades with the decline in oil prices, the government of UAE realised that the
economy of the country can not only depend upon the revenue from the oil industry. Hence on
eof the steps taken to reduce this problem of overreliance is the establishment of free zones. Each
of the various free zones is dedicated to a separate industry. This will be a significant cause for
the boost in the requirement of reputed auditors and accountants, especially in the Free Zones.

The introduction of the Value Added Tax

The Value Added Tax (VAT) was implemented on 1st January 2018. With the implementation of
VAT, there has emerged an enormous requirement of both an accurate accountant and a
responsible auditor, due to the stringent tax regulations that have come into place required to be
followed by all companies.

The companies will also require to file VAT returns or else they may have to face specific
penalties. To ensure all the necessary requirements are met and no violations are made, it is
necessary that a company takes the assistance of a reputed auditor.

Advancements in Technology:
UAE has hugely invested in technology and innovation through Artificial Intelligence and
several computer aided systems across various areas of the economy. Similarly these
developments have also helped the audit and accounting professionals to do their work more
accurately and in lesser time.
An example in case of the accounting is that instead of taking a sample population to prepare a
report, the accountants can now take the reading of the entire population which will give out a
better and accurate result to the people.
In the case of auditing, the technologies utilized by these professionals have become so advanced
that the audit process which used to take days can now be conducted in just a 1 or 2 days.
Hence, UAE can certainly be seen as a future for the growth of accounting and audit industry,
with the increased demand, support and innovation towards the sector.

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Major Accounting and Audit firms competing in Dubai : (John, C.W.,(2020)
Top 10 auditing firms in Dubai:
These include the big 4

1. PwC:
works intending to help individuals and organizations create value and experience growth
through the delivery of high-quality assurance, taxation and advisory services. The
audited reports signed by PwC has great reliability, confidence and acceptability all
around the globe.

2. Deloitte:
The firm provides taxation, risk management, audit and financial advisory services all
over the world. With a staff of estimated 225,400 people, it is known to be one of the
largest recruiters among the Big4. With an enormous client portfolio of some of the
largest enterprises of the world, with extensive international experience.

3. KPMG:
The firm delivers services to almost 155 countries around the globe. With all that
international experience and versatility, they have various departments of expert taxation,
auditing, assurance, advisory and consultancy services. All provided under a single roof.

4. EY:
One of the largest networks of professional services in the world. The firm specializes in
taxation, audit assurance, transaction and advisory services. With a culture that
demonstrates client respect, work integrity and professional enthusiasm, they provide an
exceptional experience with an exceptionally talented workforce.

5. Push Digits Chartered Accountants:

The firm has been featured in The USA Today, Forbes, The Denver Post and
Entrepreneur as one of the top Accountancy and Auditing Firms not only in Dubai but in
the whole world. The firm builds with each client big or small a healthy long-lasting
relationship.

4. BDO:
Operating in almost 162 countries, works with an objective to provide its clients with a
flexible, proactive approach towards helping them. With wide international coverage, the
firm has branches in every continent hence can provide consolidated services for your
global business.

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 7. Grant Thornton:
Known as G.T, one of the leading chartered accountancy firm famous among commercial
clients for providing the highest quality of professional accounting, taxation and auditing
services. The firm has experience of handling clients from different industries and that
has enabled it to provide customized services suited to each business needs.

8. Crowe Horwath Chartered Accountants:

Crowe is 7th largest global accountancy firm of the world. Its professional network
consists of 220 firms across nearly 130 countries. The firm has expertise in audit and
assurance with a portfolio consisting of well-reputed clients.. It also operates at a policy
of 24/7 effective communication.

9. RSM Chartered Accountants:

RSM focuses on providing consulting, taxation and auditing services to the market.
Operating in approximately 120 countries. This firm can help save the bulk fee while
providing professional quality services. With a fast-growing client profile, the firm can
handle every kind of complex accountancy and auditing issue.

10. Baker Tilly:

The firm is dedicated to helping its clients anticipate tomorrow while winning today.
With experience at handling versatile clients, the Firm offers personalized auditing,
assurance, advisory and taxation services.

Top 10 Audit firms in the world: (Stanton, P., & Stanton, J. , 2002).
1. Deloitte :
Deloitte is ranked number one with revenues of $46.2 billion for their 2019 fiscal year.

Deloitte was also ranked number one with revenues of $43.2 billion for their 2018 fiscal year.

They were able to pass PwC in 2016. They ranked behind PwC for their 2015 revenues.

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2. PwC :
PwC comes in at number 2 on the top 10 accounting firms ranking.

They made $42.4 billion in revenue for 2019 and 40.7 billion in 2018. This puts them behind the
$46.2 billion of revenue that Deloitte generated.

They made $37.7 billion in revenue for 2017.

They made $35.9 billion in revenue for 2016.

3. EY:
Ernst and Young comes in at number 3. EY is usually at number 3 because they are usually
several billion dollars behind PwC and Deloitte. Their audit practices and consulting practices
are not as robust as Deloitte and PwC.

Ey earned revenues of $36.4 billion in 2019.

EY earned revenues of $34.8 billion in 2018.

EY earned revenues of $31.4 billion in 2017.

EY earned revenues of $29.6 billion in 2016.

EY has 284,000 professionals around the globe.

4. KPMG :

KPMG forms a part of the top 4 accounting firms.

KPMG earned revenues of $29.75 billion for their 2019 fiscal year.

KPMG earned revenues of $28.96 billion for their 2018 fiscal year.

KPMG earned revenues of $26.4 billion for their 2017 fiscal year.

KPMG earned revenues of $25.42 billion for their 2016 fiscal year.

KPMG has the least amount of employees in the big 4 with 219,000.

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You will see a large drop off from KPMG to the next accounting firm because of their global
reach. The reason the big four accounting firms are considered the big four is because the next
closest accounting firm isn’t really that close in terms of revenue or number of employees.

5. BDO :
BDO is the fifth largest accounting firm in the world.

They earned $8.1 billion for their fiscal year ended September 30, 2017.

They earned $7.6 billion for their fiscal year ended September 30, 2016.

BDO attributes their growth in 2016 to strategic mergers that occurred. In order for BDO to
catch up to the big 4 accountancy firms they will have to continue merging internationally. It is
the global presence that makes the big four the big 4.

BDO operates in over 150 countries in the world. The number of employees working at BDO
was 67,731. BDO has 1,401 offices across the globe.

6. RSM :

RSM is the sixth largest accounting firm of the top 10 accounting firms in the world.

They earned revenues of $5.1 billion for their fiscal year ended December 31, 2017.

They earned revenues of $4.87 billion for their fiscal year ended December 31, 2016.

RSM launched their global brand recently in October 2015. The global brand has helped RSM
reach the number sixth spot in the top 10 biggest accounting firms.

RSM has more than 41,420 employees working across their 793 offices.

7. Grant Thornton :
Grant Thornton is the seventh largest accounting firm with revenues of $5 billion in 2017. The
number of employees at Grant Thornton grew to 47,000 in 2016.

Grant Thornton operates in over 130 countries across the world.

8. Nexia International :
Nexia has moved up to the 8th largest accounting firm in the world with $4.5 billion in revenue.
The number of employees working at Nexia International was around 34,000.

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Nexia has 2,594 partners working around the world.

Nexia earns 45% of their revenue from audit work, 26% from tax services and 29% from
advisory services.

9. Crowe Horwath :
Crowe Horwath is the ninth largest accounting firm of the top 10 accounting firms in the world
with $3.8 billion in revenue. Crowe Horwath moved ahead of Baker Tilly with their 2016
financial results.

Crowe Horwath has 216 member firms and operations in 129 countries. They have over 760
offices around the world.

Crowe Horwath has 35,327 employees around the world. 3,860 of those employees are partners
and 26,447 are staff personnel.

10. Baker Tilly :

Baker Tilly is the ninth largest accounting firm in the world. Their most recent fiscal year has
them earning $3.4 billion in revenue. Baker Tilly has 30,490 professionals around the world.

They operate in over 147 countries.

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 CHAPTER III - ORGANIZATION PROFILE

Behl, Lad & Al Sayegh-Chartered Accountants,Dubai (Vince Raughn R.T., 2006).

Introduction:

One among the top 15 audit firms in the UAE, a well known audit firm with a global
reputation. A broad spectrum of clients who are associated with large organizations and
complex businesses are dealt with.

BLS features on the Approved List of Auditors of local banks and the free zones in the UAE.
Also approved by Dubai International Financial Center (DIFC) to provide auditing and

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accounting services to companies registered with DIFC and also by The Real Estate
Regulatory Agency (RERA) to carry out the audit of Real Estate Projects, Escrow Accounts
with banks and Owner's Associations.
About:

History, Ownership structure and Growth of the firm:

The firm Kannan & Behl established in 1978 as a partnership firm was restructured in 1997
with more partners as Behl, Lad & Al Sayegh (BLS), and has emerged as one of the
prominent medium-sized Auditing Firms in Dubai, UAE, serving over 600 local, regional
and international clients. Also featured on BBC World and BBC Prime channels as one of
two audit firms recommended by BBC in their Dubai City Guide.

The merger of three firms under the Behl, Lad & Al Sayegh (BLS) banner catapulted the firm
into a new era of professionalism. By increasing the manpower and professional capabilities,
the firm has been able to meet the high expectations of its clients.

The firm is committed to provide close, personal attention to its client needs through years of
advanced training, technical expertise and financial acumen.

Mission:
“Our primary goal as trusted advisors is to provide insightful and practical advice to enable
our clients make informed financial decisions. Simply put we seek our success in the success
of our business partners and clients. “

Vision: “A relentless pursuit for excellence and continued dedication to the principles of
professionalism, responsiveness and quality to help provide outstanding service to our
clients.”

KEY INDUSTRIAL GROUPS CATERED TO BY THE COMPANY:

 Banking and Finance Services

 Contracting
 Geological Services Relating to Oil and Gas
 Manufacturing
 Shipping and Transportation
 Media, Advertising & Printing
 Hospitality & Leisure

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  Healthcare
 Equipment Leasing
 Educational
 Real Estate
 Trading
 MNCs
 Gold and Diamond Merchants
 Investments
 Fitness Clubs
 Network, Engineering and IT Services
 Petroleum Trading
 Insurance Companies
 Beauty & Personal Care
 Metal Trading

MANAGEMENT TEAM HIERARCHY:

S.L. Behl Vasant Lad Sudhir Sawant Waleed Al Sayegh

Managing Managing Partner Partner Partner

Partner

Rustom Mehta
Director

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Vishal Lodha Prasad Lad

MANAGEMENT TEAM:
Currently, the Firm has four partners and around 25 professionally qualified, well-
experienced and dedicated staff having exposure to the above services to clients.

S. L. Behl
Managing Partner
Founder of Kannan & Behl in 1978. Fellow Member of the Institute of Chartered
Accountants of India and he has been in practice for over 45 years and in Dubai for the past
over 35 years.

Mr. Behl possesses business acumen to understand the client’s requirements and offer apt
solutions to their problems. He commands tremendous respect from all the clients for his
interpersonal relationship skills and polite nature.

Vasant Lad
Managing Partner
Fellow Member of the Institute of Chartered Accountants of India. He has been in Dubai for
the past over 30 years and possesses vast experience in industry as well as in the profession.
With good communication and interpersonal skills, Mr. Lad has been instrumental in
expanding the firm’s areas of practice.

Specialized in advising clients on business Set-up, entry strategy, evaluation and setting up
of accounting systems & controls, management audits and project feasibility studies

Sudhir Sawant
Partner
Fellow Member of the Institute of Chartered Accountants of India. Over 30 years of
experience in the auditing profession, out of which about 21 years with a ‘Big 4’. He has
been in the Gulf region for over 25 years. Mr. Sawant has particular expertise in the banking
and finance sector, including statutory audit of large public sector commercial and industrial
banks, audit of Central Bank of a country, bank examinations on behalf of the Central Bank
and group consolidations.

He is in charge of the audit across different segments and responsible for the technical
direction of the firm, including implementation and compliance with International Financial
Reporting Standards (IFRS), auditing techniques and documentation and in-house training to
the Firm’s staff.

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Waleed Al Sayegh
Partner
A UAE national with MBA and post graduation degree in Accounting. He has been in the
profession for over 20 years and has an in depth knowledge of Middle East Corporate Laws
and invaluable experience in the local market .

Also works with the Government of Sharjah as Director General of the Emirate’s Department
of Central Finance.

KEY PERSONNEL :

Rustom Mehta
Director
A member of the Institute of Chartered Accountants of India with over 35 years of
professional experience in India, UAE and Africa with a ‘Big 4’ firm and a leading practice
in the UAE. Possesses wide experience in audits of companies operating in various sectors,
ranging from manufacturing, construction, banking, finance, shipping, travel, transportation,
entertainment, general trading and non-governmental organizations and manages a large
portfolio of clients. His area of experience is mainly in due diligence on business acquisitions
and disposals.

Vishal Lodha
Manager, Hamriyah Zone Branch
An Associate Member of the Institute of Chartered Accountants of India with over 15 years
of experience in the auditing profession. His audit experience covers diverse range of clients
in the banking, stock broking, real estate, contracting, trading, manufacturing and services
industry. In addition he also handles consultancy assignments of the Firm relating to business
valuations, business financing, due diligence, financial modeling, fraud investigations and
special reports.

Prasad Lad
Manager, Administrative & Legal
Over the last decade Prasad has been in charge of setting up businesses in the UAE for
clients and providing various services and facilities. Also involved in providing
administrative and facilitative services to clients in their day-to-day liaison with government
offices. He is supported by a dedicated network of back office service providers including
typists, translators and access providers. He also carries out many support activities relating
to liquidation of Companies.

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SERVICES :

Though our core service is financial auditing, our approach is to look beyond conventional
audit and help our clients in finding solutions to their specific business issues.

BLS offers a variety of services as follows:

 Auditing & Assurance

 Accounting & Supervision

 Business Setup Services

 Business Valuations & Due Diligence

 Internal Audits & Systems Review

 Project Appraisals & Feasibility Studies

 RERA Audits

 Forensic Investigations

 Company Liquidation

 VAT Assistance

ACCREDITATIONS :
BLS is recognized as one of the leading auditing firms on the approved list of auditors by
almost all the local UAE banks, numerous Free Zones in the UAE, Dubai International
Financial Centre (DIFC) and The Real Estate Regulatory Agency (RERA).

The firm is also approved as registered agents of Jebel Ali Free Zone Offshore and Ras Al
Khaimah (RAK) Offshore Companies. For several years BLS has executed financial,
operational and procedural audits for many non-profit organizations for their various
humanitarian projects in Afghanistan funded by WHO, UNHCR, World Bank, Government
Departments and Ministries and also other private business entities.

The Firm is an Approved Employer – Trainee Development as Certified Accounting

Technician (CAT) by Association of Chartered Certified Accountants (ACCA), UK to train
ACCA Students as well as Articled Students of the Institute of Chartered Accountants of
India.

30
ACCA Approved Employer – Trainee Development
Found in 1904 with its headquarters in London, ACCA is a global
professional accounting body with over 170,000 members and 436,000
students in 180 countries..

ACCA Approved Employer – Trainee Development Stream status

recognizes BLS’ commitment to progress its trainee's careers as
finance professionals.

ACCA trainees, including CAT trainees, can take advantage of the Performance Objective
exemption. This expresses that BLS trainees do not need to complete the challenge questions
associated with each of their Performance Objectives.

This exemption reflects the fact that BLS meets ACCA’s demanding criteria for trainee
development, including having the policies and processes in place that allow trainees to meet
the minimum requirements of ACCA’s PER. It denotes that ACCA has confidence in BLS’
systems and processes and at the same time removes duplication of effort with regard to
record keeping.

ICAI Approved Employer – Articleship Training

Being the national accounting body of India, the ICAI (Institute of
Chartered Accountants of India) was established in 1949. Known for
its rigorous membership course criteria, an individual can become an
ICAI by taking prescribed 'toughest in India' examinations and
undergoing three years of practical training.

Earlier, CA students had to undertake the training programme within India. However, due to
the rapidly growing popularity outside the country and the non-requirement of an Indian
citizenship to be admitted to the curriculum, students are now allowed to undergo their
mandatory training programme outside India.

Being an established firm of chartered accountants registered with the Institute, BLS recruits
ICAI students for training development purposes, providing them ample professional
exposure while steering their theoretical knowledge in the right direction.

31
International Alliance - BLS Accounting Dubai

BLS is a member firm of the internationally

recognized Geneva Group International.
An established leading international alliance,
Geneva Group International ranks as the 6th
largest International Network & Association in
the world. GGI embodies over 460
independent accounting, audit, consulting &
law firms globally.

Spanning over 650 offices and 22,000 employees worldwide representing 220,000 clients,
Geneva Group International was found in 1995 with its current headquarters situated in
Zurich, Switzerland.

A common mission to provide top quality services binds GGI and its member firms globally.
Integrity, competence, independence, respect and passion are the key philosophies of GGI
that unite it with its member firms. BLS was invited to join GGI as an independent member
in the year 2000.

GGI has periodic Peer Review procedures for evaluating the independence, reputation and
professional working procedures of its member firms. Continuous professional education is
provided through training seminars and the GGI Intranet, known as ‘Geneva Link’.

GGI is also in the process of setting up a virtual management institution with affiliation to
internationally recognized universities to facilitate on-going training and professional
development.

32
CHAPTER IV – RESEARCH
METHODOLOGY

33
Objective: The main objectives of this organizational study are:
 To study and understand the organizational structure.
 To understand the functioning of various departments and the variety of products
and services offered by the organization.
 To understand how the management controls various departments towards the
achievement of the organizational objective

Type of research:
Descriptive:
• Observational method:
Throughout my time working at BLS, I would observe the ways in which various things took
place in the office on a daily basis through physical observation and through interaction with my
colleagues. The key takeaways form this process include the following:
o The rapport between the employees, the level of respect and comfort between
employees working at different positions.
o The kind of the organizational structure- number of hierarchal levels.
o The reporting line structure, who is accountable to whom.
o The leadership style practiced by the superiors.
o How the employees understand problems and find solution for problems.
o The variety of clients dealt with and the different approaches used by the staff to
deal with them.

Data Sources:
Primary data: Primary data refers to the raw first hand data collected through different
techniques like surveys, questionnaires etc. For this project the data collected is based on the
work documents used to carry out the internship work that was assigned to mean through direct
interaction with the managers and the employees of the organization.
Secondary Data: Secondary data means the data that is collected by somebody else apart from
the user at an earlier time. A major part of the data in this project are collected through reference
with the company’s official website, the company’s past client records etc.

34
Limitations of the Study:
I did encounter some difficulties during the research process like:
 Delays in obtaining responses from the employees with regards to queries and assignment
of work due to the busy working hours.
 Not being able to obtain a proper understanding of certain work areas due to
confidentiality issues.
 Occasional temporary disturbances in the network system.

35
CHAPTER V – ANALYSIS AND
INTERPRETATION

36
Departments and Services: (Vince Raughn R.T., 2006)
Behl, Lad & Al Sayegh- Chartered Accountants is a small company operating under one major
department accounting and audit with a variety number of services being offered in this field.
The services offered under this department includes the following:
 Auditing & Assurance

This is the core service which involves meeting both the statutory or voluntary audit needs
of the client.
As a part of the audit methodology, apart from the normal reporting compliances and
disclosures, the firm critically analyzes the clients’ business risks and control weaknesses
and offer them valuable suggestions to address the issues.
 Accounting & Supervision

The nature of work conducted includes reviewing financial systems to identify internal
control weaknesses and then suggest effective ways to install strong internal controls to
ensure the minimization of the risks of errors, omissions and frauds and to safeguard the
assets of the organization.
Back-Office Support and Supervision Services –Small and medium-sized family owned
organizations may not find it viable to employ a full-time accountant. BLS helps to fulfill
this need by acting as a qualified accountant through the Back-Office Support division
offering a variety of services, comprising:

 Installation of accounting software;

 Training the data-entry staff;
 Monthly accounting and documentation;
 Preparation of reconciliation statements;
 Job costing;
 Closure of monthly/quarterly accounts;
 Devising of management report formats; and
 Preparation of monthly/quarterly management reports.
BLS provides the clients continuity in their business and value for their money by assisting
them in providing regular monthly management information to take informed and timely
business decisions.

37
Computerization of Accounting records – This involves providing new, innovative and
customized solutions for accounts computerization. This includes the supply and installation
of some renowned Accounting Software (Peachtree, Wings etc.) that are most suitable for
their business, conduct in-depth systems review, establish accounting and MIS needs and
develop a suitable accounting system.

Business Setup Services

This involves offering guidance to potential investors with proper entry-level strategy to
suit their requirements and goal. The firm also helps its clients with business and property
evaluation in Dubai, to help make the right investment choice.
Managing Partner, Mr. Vasant Lad handles this portfolio personally as he has years of
experience and in depth knowledge in this area of service. This involves taking care of all
the administrative burden of registration procedures thus, leaving the businessman free to
focus on other areas of the business.
The firm is equipped with some of the best business consultants in Dubai who assist in the
formation of Limited Liability, Free Zone as well as Off-Shore companies with the best
professional support and guidance.
Business Valuations & Due Diligence

BLS is an independent consultant firm that offers assistance in establishing methods of

business valuation and performing due diligence. The firm has significant experience in
achieving a combination of accuracy, consistent high quality, transparency, speed, and
cost-effectiveness for its business valuation services.
The valuation technique utilizes established valuation models including analysis of both
past and projected figures. Valuations also include a background of the company, future
prospects and risk management profiles.
Internal Audits & Systems Review

This involves carrying out in-depth review of accounting systems, internal controls and
checks as well as adequacy of monthly information systems followed by offering valuable
recommendations for improving and strengthening the existing ones.

The firm’s experience spreads across diverse industry sectors along with 'start ups' and
'mergers'. The objective is to release the full potential of the business and to ensure that
internal control systems yield positive financial results.
Project Appraisals & Feasibility Studies

BLS provides a thorough appraisal on any kind of new project referred to the firm carried
out by conducting an in-depth feasibility study to assess the viability of the project.

38
Also bringing in an entrepreneurial spirit and vision to help the clients in strategizing
solutions, seizing new business opportunities and optimizing profits for successful
business expansions.

The firm also represents clients at negotiations with potential joint venture partners. The
Feasibility reports prepared cover details relating to market research, cost analysis, plant
evaluation and process assessment, financial projections and raw material sourcing.
RERA Audits

RERA audits are essential for ESCROW Accounts, owner's associations and trustee
accounts. It is a part of the essential requirements prescribed by the RRA. BLS provides
the above services for clients registered with RERA.
BLS staff has over 10 years of experience in carrying out this specialized service.
Forensic Investigations

The firm also provides forensic accounting services which involves carrying out a number
of investigations involving frauds, irregularities and disputes and providing reports to
enable the clients to pursue legal cases.
There is a special team dedicated to the preparation of the investigation reports. In the
past all of the reports have been well-received by the clients and the interested parties
such as banks, Police Department, Courts and Government organizations.

Company Liquidation
BLS provides liquidation services in accordance with local laws and regulations.
During the liquidation process, BLS assists the owners in meeting their legal obligations
by advising on practical steps necessary for the liquidation along with the preparation of a
Statement of Affairs and supplementary information as required for the presentation to
creditors and the authorities.
VAT Assistance

BLS also has a special team to provide VAT Implementation Services comprising
clarification of VAT concepts, mapping of the business model and transactions to identify
potential issues and their impact on the business, VAT registration, installation of the VAT-
compliant Accounting System, its management, training to the staff on the VAT System and
filing of VAT Returns.
This has become particularly important with the Implementation of VAT by GCC countries
form 2018.

39
CHAPTER VI- DISCUSSION / LEARNING
FROM THE INTERNSHIP

40
NATURE OF WORK:
I had the opportunity to assist in the accounting and audit department at BLS as an audit intern
mainly in the area of external audit along with the company liquidation services in brief.
The main objective of this internship was to gain an understanding of the real life work
environment in this field as well as apply the book knowledge practically.
I was guided and supported in my duties and responsibilities by the Accounts manager Ms. Jyoti
and other fellow audit professionals across different age groups and positions.
The internship was for a duration of 4 weeks throughout the month of July 2021.Each week
included learning about the different aspects of the audit process and the excel techniques used
for the same.
WEEK 1:
The first week involved understanding the nature of the work done in the audit department,
gaining an in depth knowledge of the way things work and the culture within the organisation to
be able to then apply it and carry out some work myself.
This included reading and understanding the audited consolidated financial statements of past
clients (REBA Gulf investments for example) including matters like the presentation, format,
contents, the rules and regulations adhered to as a basis of the audit etc.
A detailed understanding of the audit process including the steps involved :
1) Client’s trial balance is reviewed by the auditor (study matters like the amount of current
liabilities, assets, capital etc.) based on these factors studied an appropriate audit fee is
quoted and an audit proposal is provided.
2) Letter of representation issued from the client to the firm
3) Audit proposal provided stating the list of requirements needed from the client by the
auditor to obtain sufficient evidences, there are no standard list of requirements, it will be
specific to the company.
Some of these evidences may include:
KYC procedures for AML regulation, commercial license, TRN certificate, commercial
register, bank statements, stock summary, certificate if registration of VAT, partnership
details, address proofs
After obtaining these evidences these are reconciled with the originals to be able to verify
the data.
Based on these verifications the Financial statements of the client are being audited, the
audit opinion is formed included as part of the audit report prepared and then submitted
to the users.
4) Management letter issued from the firm to top officials of the client highlighting
important areas if performance of the company (like receivables, payables etc.)

41
WEEK 2:
BLS being a small company prepares financials of current year based on the trial balance data
given by the client for reconciliation purposes on excel. This would vary in larger companies
where financials will be prepared automatically through programmed softwares.
I had to prepare the financials based on the evidence provided by the client, by revising the
previous year financial statements by making editions relating to the dates, amounts and other
changes relevant to the current year and linking it to the current year trial balance.
The data is finally checked to see if tallied with the trail balance data to ensure the accurateness.
One of the companies for which this was done is “Cyan Ajman shop fixtures”
Note: sample of work relating to Cyan Ajman Fixtures included (APPENDIX)
WEEK 3:
Preparation of liquidation Reports:
During this week I was assigned work in the preparation of liquidation accounts for clients (like
Coesia DMCC) on excel.
Note: Sample of work relating to Coesia DMCC included (APPENDIX)
Process:
The liquidating company, liquidator appointment, signing authority to legal representative of
Shareholders resolution is needed in all cases which may require a resolution, either a combined
resolution or a separate one for each may be passed.
In case of liquidator appointment an appointment letter stating the confirmation from the firm
doing the liquidation (in this case BLS) will be prepared followed by the resolution of the
appointment being made after the legal representatives of the client on behalf of the shareholders
approach the firm to carry out the liquidation of the company.
The various verification procedures carried out includes obtaining a bank closure statement as
well as examining the assets and liabilities accounts relating to whether all the dues have been
paid or not, assets been sold or taken over by the shareholders all of which should have happened
in a company under liquidation.
The Letter of Representation signed by the legal representative on behalf of the client’s
shareholders are obtained by the liquidator (in this case BLS) to act as guarantee of client’s
claims and limit the liability of the liquidators.
The liquidation reports include liquidated FS prepared based on the above verification process
and evidences obtained from the client.

42
WEEK 4:
Compilation of accounts:
This includes compilation of accounts based on bank summary for bank related transactions,
purchase transactions based on purchase summary, sales transactions based on purchase
summary etc.
My area of work included the preparation of accounts based on bank summary, on the basis of
which the opening balances and closing balances can be arrived at and then from which the trial
balance can be formed. This method makes it much easier since if the plotting was done based on
checking each invoice or voucher it would take a lot more time and costs.
One of the clients for which this was done included Polyofill.
Note: Sample of work relating to Polyofill included (APPENDIX)
Visiting client:
I had gotten the opportunity to visit a client, Sham’s Co. Ltd- Hamid Tea along with two other
audit professionals at one of their offices located in Deira, Dubai.
The visit was made as part of one of the audit checking procedures relating to the sales and
purchase validation with the invoices provided by the client.
Around (30%- 40%) on a sample basis of the invoices are checked since it is not practical to
carry this out for all of the invoices.
To carry this out the documents checked include bank reconciliation statements, bank
confirmation, stock statements, ageing analysis etc. all of which are requested from the client.
VAT returns are important for sales validation to verify the turnover data and VAT invoices used
to agree it to the purchase order to verify the quantity price, agree to the shipment document to
verify the shipment details.All of these documents related information are reconciled with the
purchase and sales ledgers to verify the accuracy.

43
CHAPTER VII- CONCLUSION

44
CONCLUSION:
From this internship at BLS, I have been able to apply the book knowledge into practical use.
What I have seen from my time at BLS is that that what we study and what we apply at work are
quite different, so experience is very important to be able to build a career.
My time at BLS helped me gain a wider sense of the way things work in the audit world, the
different aspects of the audit field, about the industry, the company, the work culture.
Through carrying out the duties assigned to me I was able to hone my excel skills and learn new
techniques improving my speed, accuracy and efficiency in work which will be very helpful
going forward with the growing dependence on technology in everyday life. As well as giving
me a sense of the level of responsibility and commitment expected in the workplace.
The internship taught me about various important life skills needed to survive in the corporate
world. These include punctuality, organizational skills and team work.
Furthermore the internship helped me to build lifelong relationships with many experienced
individuals in the audit field who all made this experience a very memorable and fruitful one.
My colleagues would personally sit with me guiding me through the audit procedures and the
various documents involved, along with helping me improve my work through feedback and
provide suggestions to rectify mistakes.
There were times when I couldn’t get in touch with my colleagues which was understandable
since they would be very busy as the summer months are usually very crucial and hectic in the
audit field. They were however very supportive and ready to teach and guide me along my duties
however they could when they got the time.
My time at BLS was very enriching and informative. I gained a lot of work exposure and in
depth knowledge in the audit field of work, which considering that I aspire to work in this field
in the future was very helpful.
BLS with the very welcoming environment and the challenging yet interesting nature of the
duties that was assigned to me helped me grow professionally and socially. This I hope will help
me grow as a future employee and in my other future endeavours.

45
CHAPTER VIII- REFERENCES

46
REFERENCES:
Hronsky, J. J., & Houghton, K. A. (2001). The meaning of a defined accounting concept:
Regulatory changes and the effect on auditor decision making. Accounting, Organizations and
Society, 26(2), 123-139.
Gray, I., & Manson, S. (2011). The accounting process. London: South-Western Cengage
Learning,
Sarah Kelani (2020) Meaning of Audit and Assurance, audit process, Advanced Audit and
Assurance ACCA. 65-76
Grewal, T. S., Grewal, G. S., & Gerwal, H. S. (2002). Double Entry Book Keeping. Sultan
Chand, 44-47
Abdolmohammadi, M. J., & Tucker, R. R. (2002). The influence of accounting and auditing on a
country's economic development. Review of Accounting and Finance, 102-106
Alzeban, A. (2020). Internal audit as an antecedent of economic growth. Journal of Economic
Studies, 111-117
Saderuddin, A., & Barghathi, Y. (2018). The impacts of introduction of VAT on the audit
profession and economy in the UAE: Auditors' perspective. Accounting and Management
Information Systems, 17(3), 406-439.
Stanton, P., & Stanton, J. (2002). Corporate annual reports: research perspectives
used. Accounting, Auditing & Accountability Journal.
Wootton, C. W., & Wolk, C. M. (1992). The development of “the big eight” accounting firms in
the United States, 1900 to 1990. Accounting Historians Journal, 19(1), 1-27.
Vince Raughn.R.T. (2006). Introduction to Behl Lad & Al Sayegh: Audit and due diligence. Top
accoutimng firms in Dubai, 35-56
John, C.W.,(2020). Top 10 Accounting firms in UAE: All about accounting in Middle East, 23-
30

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CHAPTER IX- APPENDIX

48
APPENDIX
SAMPLES OF CLIENT WORK
Cyan Ajman Fixtures- Financials linked to Trial Balance

49
Coesia Middle East- Liquidated Accounts

Letter of Representation for liquidation- Coesia Middle East

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Polyofill Bank Summary based accounts

51