Internship Report on AUDIT PROCEDURE ON CASH INCENTIVE -A Study on AHKC Chartered Accountants

1. PowerPoint Template

2. Audit procedure
on
Cash Incentive
• AHKC Chartered Accountants

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Table of
Contents
• Introduction.
• Recommendation.
• Company Profile.
• Data Collection & Processing.
• Discussion of the Study.
• Conclusion.
• AHKC

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Chapter One
 Cash incentives are one type of export incentives in which the government offers fixed rates (as a direct
payment) on certain sectors.
Introduction
 The another reason for giving cash incentives is to make domestic products more affordable and
competitive in the international market.
 This scheme was first introduced in 1994 as ‘Cash Compensatory Scheme’ as a motivating mechanism
to increase export and to establish the backward linkage.
 Cash incentives will be payable if export products are produced within origin country.

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 The general objectives of the study have detail insight on the Audit Procedure on Cash Incentive.
Objectives
 The Specific Objective are to find out the right answer of bellows question
 What’s the cash incentive.
 Why its offer, the Government
 What are the standard audit procedures of cash incentive
or
 How drafting and final audit reports are produced and delivered to the client
 Whom it may concern or criteria for getting the cash Incentive.

6. Company Profile
• Name
Aziz Halim Khair Choudhury
Chartered Accountants
• Establishment
• 1979
• AHKC ranked the number
nine position audit firm in the
country
• Exclusive Correspondent firm
of PKF International.
• Address
• Phulbari House
• House 25 (3rd Floor)
• Road 1, Sector 9, Uttara
Model Town
• Dhaka 1230
• Mission
• To provide clients with a quality
service that focuses on the
specific needs of each client -
addressing business problems
with creative solutions
grounded in practical
experience and high levels of
expertise. We are committed to
the values of integrity,
professionalism and
independence
• Vision
• To be recognized as the first
choice for business houses &
other organizations in their
selection of professional
advisers and as the best
alternative to their existing
service provider.
AHKC

7. Services of AHKC Chartered Accountants
• Audit &
Assurance
• Corporate
Finance
• Taxation
• Investigation
• Outsourcing
• Forensic
Accounting
• Consultancy

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The report has been prepared based on both primary and secondary data.
Data collection & Processing
 The Primary information for the report was mainly gathered by direct investigation of various
records, papers, documents, operations procedures, and various personnel
 Institute of Chartered Accountants of Bangladesh (ICAB).
 Secondary sources of information:
 Bangladesh Standard of Auditing (BSA)
 Receive information from a notice issued by Bangladesh Bank.

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Chapter Three
 The Internet was the most important sources for collecting this information.
Data collection & Processing
 Also, the information collected by a cash incentive checklist developed by AHKC.
After collecting the data, those were analyzed by using some tools such as MS word, Excel etc. to
make the data meaningful and presentable.
 Data Processing Method:

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Chapter Four
Discussion of the Objectives:
About Cash Incentive
 Export subsidy or cash incentive is one of the main supports that has given to the exporters to encourage or
help them to become competitive in export markets.
 On the other hand, the cash subsidy is in the form of Cash Incentives
 The government provides facilitates to the exporters by - service subsidy and cash subsidy.
 Services are to facilitate exporters, all related logistics, research, information, infrastructural support, etc.
 This facility was introduced for the economic development of the country by increasing export and thereby
earning Foreign exchange.

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Chapter Four
Why it’s offer the Govt. :
 To increase the total export of the country.
 To establish the backward linkages of different sectors.
The main reasons for providing cash incentive facilities are:-
 To use the local raw materials instead of foreign raw materials. for example- using local yarn
instead of foreign yarn in garments industries. etc.
 To increase foreign remittance and foreign currency reserve.
The other reasons for giving cash incentives are:-
 To facilitate more value addition in a different sector.
 To expand the new market for exporting products.

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Chapter Four
Criteria for Cash Incentive :
 Only one party among the (yarn) manufacturer, (fabrics) supplier or exporter will get Cash incentive.
 Application for cash incentive will have to submit to the negotiating bank within 180 days of the
realization of export proceeds.
 If the name of the applicant as the cash incentive receiver is not mentioned in the Back to Back L/C, the
applicant will be rejected immediately.
 Alternative cash incentive will be payable only after the export price is received in foreign currency
(realized value).
 All the payment of alternative cash incentives will be examined by the Internal Audit Team of the concerned
Bank.

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Chapter Four
The Audit Procedure of cash incentive
The standard Audit procedures for executing cash incentive files are shown below.
1.Application for Cash Incentives submitted by the Exporter
2.The application is officially received by the Bank
3.The bank issued a letter to the concerned Partner of the Audit Firm
4.Beginning the Cash Incentive Audit
6.Review of the Working File
7.Preparation of Control Sheet and Cross Checking of the Working File
5.Preparation of the Working File

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Chapter Four
The Audit Procedure of cash incentive
8.Partner’s Review and Signature
9.The Certificate is submitted to the Bank

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Chapter Five
Findings :
Internship program provides me lot of opportunities to learn many things from different situations after joining
with AHKC. Some observations are discussed below:
 It is found that the papers provided by the client are not always appropriate.
 The auditors are sometimes biased by their clients to furnish the incentive files according to the client’s
calculation amount.
 Auditors go for factory visit after fixation of a date.
 However, AHKC follows the rules and regulation of Bangladesh Bank Circular in case of Cash Incentive Files.

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Chapter Five
Recommendation
 Sometimes, the client of the bank provides inappropriate documents. It wastes valuable times of auditors.
So, the applicants should deliver appropriate documents.
 Sometimes, the auditors are biased by the clients to equip the incentive files according to the client’s
calculation amount. As per audit rules, auditors should drop out of those client’s files.
 Auditors should not visit exporters’ factory by fixing date with the exporter. If they do so, it can help the
exporters to manipulate their documents and information.
 Exporter’s bank should not be given the power for everything because bank always wants to retain its existing
clients and also try to attract new clients.
 Delay audit can assist beneficiary to make false documents for cash incentive. In that case, auditors should
confirm from the bank whether all the documents submitted by the applicants are true or not. After getting
conformation, auditors should start audit work .

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Chapter Five
Limitations of the study
 The timeframe for internships was insufficient to conduct a huge course of audit practice of cash Incentive.
Innate Limitations.
 Bangladesh Bank regularly revises new notices and old ones and this nature of their change require auditors to
continue to do so regularly
 As a junior auditor in the Cash Incentives team, I have received a limited amount of work responsibilities only
when dealing with the processing issues.

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The End
To get the Internship report, please contract Via:
Jahidhussain.official@gmail.com

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