A CASE STUDY ON SGV & CO.

AS HOST COMPANY IN THE

STUDENT APPRENTICESHIP PROGRAM

In partial fulfillment of the requirements in

Student Apprenticeship Program

Submitted to:

Ms. Yolanda Baccay

Submitted by:

Paul Joseph D. Ulpindo

Patricia Ann G. Villanueva

SY 2018-2019
 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

Table of Contents
ACKNOWLEDGEMENT ................................................................................................................3

COMPANY PROFILE .....................................................................................................................4

INDUSTRY ANALYSIS ...................................................................................................................7

COMPARISON BETWEEN THEORY/ CONCEPTS TAUGHT IN CLASSROOM EXPERIENCE

DURING ON-THE-JOB TRAINING ............................................................................................. 11

ISSUES AND CONCERNS ABOUT THE HOST COMPANY:...................................................... 13

As an Internship Host Company ......................................................................................................... 13

As an Industry Player .......................................................................................................................... 15
RECOMMENDATION TO IMPROVE HOST COMPANY .......................................................................... 16

SUMMARY OF ACCOMPLISHMENT ......................................................................................... 17

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

ACKNOWLEDGEMENT

We would like to state our deepest appreciation to all the people responsible in

conducting the Student Apprenticeship Program, the professors who become part of seminars

organized, the advisers who updated their students on the requirements that must be submitted,

and everyone who continually supports the program of our school. If not of their guidance and

persistence with this program, it would not be possible.

To our SAP adviser, Ms Yolanda Baccay, for giving us reminders, answering our

questions at all times and recommending companies to apply. We would like to salute her

enthusiasm and passion for the work given to her.

We sincerely thank our family and friends who supported us to choose the company who

would install new knowledge and experience in us. They also helped us to accomplish the works

to be done. We also place on record, my sense of gratitude all, directly or indirectly, assisted us

on completion of this program especially our seniors, associate and those who been part of our

internship in Sycip Gorres & Company

Finally, to God Almighty who guided us from the start of our internship until the last day

of the program. We thank him for the wisdom and all the blessings received.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

COMPANY PROFILE

SyCip Gorres Velayo & Co. (SGV & Co.)

By maintaining a culture of excellence and innovation since its inception in 1946, SGV &

Co. has played a critical role in building a better working world for its people, clients and

communities. The Firm remains as a trusted partner of different companies from diverse

industries in attaining their goals by providing integrated solutions in assurance, tax, transaction

and advisory services.

SGV became a member practice of one of the largest professional services firms in the

world, Ernst & Young Global Limited (EY), in June 2002, which has given SGV a competitive

advantage in terms of global engagement that helps train its people and develop new solutions

for clients.

The firm changed its name twice: first in 1947, to SyCip

Velayo Jose & Co., and again in 1953, to SyCip Gorres Velayo &

Co. (SGV & Co.).

SGV & Co. is the Philippines’ largest multidisciplinary

professional services firm with eight offices across the country.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

The Firm employs nearly 6,000 professionals from various disciplines. We provide integrated

solutions that draw on diverse and deep competencies in assurance, tax, transaction and advisory

services. We uphold the highest standards of quality. In fact, the assurance service line of SGV

& Co. has been ISO 9001-certified since 1996.

SGV & Co.’s track record has remained unmatched in the region. We have accumulated

invaluable resources in our 70 years of operations – highly qualified and competent staff, state-

of-the-art facilities and an enviable international network. We envision not only to give value-

added services to our clients but, more importantly, to become a partner in there and the region’s

development.

SGV & Co. became a member practice of Ernst & Young Global Limited on June 6,

2002.

Ernst & Young (EY) is a global leader in assurance, tax, transaction and advisory services. The

insights and quality services we deliver help build trust and confidence in the capital markets and

in economies the world over. We develop outstanding leaders who team to deliver on our

promises to all of our stakeholders. In so doing, we play a critical role in building a better

working world for our people, for our clients and for our communities.

 Our Values

o • People who demonstrate integrity, respect and teaming

o • People with energy, enthusiasm and the courage to lead

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

o • People who build relationships based on doing the right thing

SGV & Co. wants to build a better working world through their own actions and by

engaging with like-minded organizations and individuals. This is their purpose — and why they

exist as an organization. Running through their organization is a strong sense of obligation to

serve a number of different stakeholders who count on them to deliver quality and excellence in

everything they do. SGV & Co. wants to use their global reach and scale to convene the

conversation about the challenges facing economies and the capital markets.

When business works better, the world works better.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

INDUSTRY ANALYSIS

SGV helps its clients manage issues associated with globalization, addressing technology

vulnerabilities in the connected economy and assuring fairness in company’s financial

information. All its professionals are equipped with its global audit process management and

documentation tool that is supplemented by comprehensive standards and quality controls

applicable to every client engagement.

In tax services, SGV helps its clients align their tax strategies with their overall business

needs. SGV also provides advisory services and solutions that help businesses compete

effectively and efficiently, especially now that the business environment is becoming more

complex due to various trends and new business orders. SGV’s Advisory practice focuses on

helping their clients maintain competitiveness and growth in their respective markets and

industries through effective business solutions that integrate SGV’s competencies in various

aspects of business operations.

SGV has maintained a culture of excellence and innovation. Driven by a focus on

continuing, lifelong learning, we promote continuous skills training and development for our

people, strengthened by mentoring and direct exposure to global engagements through the EY

Global network.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

Competitiveness

To remain competitive, SGV and EY invest in sector training and knowledge building for

their global pool of professionals. They actively pursue thought leadership programs, fora and

industry- and sector-specific studies to ensure that the latest, most comprehensive and accurate

data is available to help their clients make better decisions.

SGV is set to adapt to these trends by taking advantage of its access to global experience

and leveraging its knowledge bases. Knowledge and insights of the Firm’s global pool of talents

help the company create new and advanced solutions in addressing clients’ needs.

Assurance Department

Assurance helps organizations and their investors to understand a company’s financial

health. It gives them confidence that the results they report provide a true and fair picture of their

business. We dig deep to understand a company’s financial performance and position, relating

details to the big picture and applying our knowledge to get to the right answers.

When you work in assurance, you’ll develop rewarding client relationships with

reputable business leaders in a wide variety of industries. People will see you as a trusted advisor

– someone who helps them understand what’s really going on in their organization.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

Discover how each part of a business operates – and what makes it succeed or fail. By

understanding the different rules that guide business and financial decisions, you’ll learn how to

investigate, analyze and report on an organization’s financial performance.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

CLASSROOM LEARNING APPLIED TO ON-THE JOB TRAINING

These are the following classroom learning, theories and concepts, that we are able to

apply during our apprenticeship in accomplishment of the tasks assigned to us: (1) Accounting

terms – Because of our present knowledge, we were able to easily understand the duties and

works that were assigned to us. The instructions given to us are grasped smoothly. (2) Microsoft

Excel – In our classrooms, we are thought that Excel is usually the software that most auditors

use. During our internship, we were able to apply the keyboard shortcuts that we learned during

our computer laboratory classes. (3) Taxation Concepts - we’re able to realized its importance in

bookkeeping, essence in having knowledge about BIR Forms, and most especially, the

knowledge that we used about input VAT, output VAT, and withholding tax, its designated

percentage charges. (4) Vouching – We are just taught that it is the act of reviewing documentary

evidence to see if it properly supports entries made in the accounting records. During our

internship, we were able to actually know and see what specific documents is needed to support

a certain entry. (5) Auditing Principles – We were able to apply our integrity and objectivity by

doing our duties in all honesty and responsibility. We also practiced our professional competence

because of our acquired knowledge in school. Practiced confidentiality by keeping all our works

or excel files and not disclosing it. We practiced our professional behavior by properly reporting

to the office on time and wearing the proper professional attire.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

COMPARISON BETWEEN THEORY/ CONCEPTS TAUGHT IN

CLASSROOM EXPERIENCE DURING ON-THE-JOB
TRAINING
As an intern in Assurance department of SGV&Co. one of the task give to us is to
prepare a bank reconciliation of the firm with its two banks. Bank reconciliation is a statement
which brings into agreement the cash balance per book and cash balance per bank. Thus, bank
statement which is a monthly report of the bank to the depositor showing the cash balance per
bank at the beginning, the deposits acknowledge, the check paid, other charges and credits and
the daily cash balance per day during the month. I was comparing this with the record of the firm
which is posted to in their system. There also using Top sheet to record all their daily
transactions supported by several documents. With this, I observed that I applied all the
principles taught to us in Financial accounting and Auditing theory. Moreover, I also learned that
there are no significant differences between those taught in school and in business relating to this
bank reconciliation. There are deposits in transits, outstanding checks, unreleased checks, debit
memo, credit memo, etc. which I used to end up with a balanced total. I also applied all the
principles in tracing if all the receipts and disbursements of the firm had been recognized and
recorded by the bank. Lastly, I find it easy to balance their total since all the information were
given and presented by the bank and their system and specially to help and support of my co-
department.

During our internship in SGV & Co., we were given various tasks and works to fully
apply our abilities and knowledge in the field of accounting and audit. We were tasked to do
footing of Financial Statements and through this we were able to use our learnings from financial
statements reporting. We were also given the chance to perform test of controls for the
company’s sales and receivables wherein we were able to see and use the company’s accounting
system and know what supporting documents is needed to be provided and signed by the

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

customer. Through this, we may know where could be the possible errors due to the company’s
internal control.

We were also tasked to perform procedures for the company’s appropriately recognition
of revenue in accordance of PFRS 15 wherein for all samples selected, we should identify all
promised goods or services from reading of the related contract and supporting documents and
discussion with sales and operation department. For each of the promises identified, determine
whether the Company has appropriately identified the performance obligation (distinct promise
to deliver goods or services). We were able to determine whether transaction price is correctly
calculated by determining whether the Company have properly identified and accounted for the
transaction price in the contract to consider the following: variable consideration, consideration
paid or payable to customers, non-cash consideration and significant financing component. We
are also tasked to determine whether the Company has appropriately recognized its revenue in
accordance with PFRS 15 by auditing the amount recognized in sales invoices and sales order.
The amount should be compared to see what performance obligations were already performed
and is now recognizable as revenue.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

ISSUES AND CONCERNS ABOUT THE HOST COMPANY:

As an Internship Host Company

During our internship in SGV, there have been some pros and cons as being our host

company.

Pros

Since most of the employees are young or within the age of 20s, it is easier for us to have

that bond or connection with them. These auditors are friendly and approachable. The good thing

about having our internship in SGV is that we receive great training, experience and hands-on

knowledge. We also got to experience to do fieldwork and have client engagements which is a

great opportunity for us to meet other people and improve our communication skills and

confidence. Learning has been a driving factor which kept us going. Learning and working along

with competent and knowledgeable young professionals gives such joy, and is something I'm

proud to experience. With SGV's purpose, the working experience here is worthwhile. This place

has taught us to be a good person in promoting integrity, responsibility and honesty. SGV is an

ultimate catalyst of growth. It gives you drive to pursue your passion in learning everyday. The

company values camaraderie, integrity and professionalism. The workload is very challenging

and not repetitive as compared to other companies that provides vast amount of experience. It

amazes me how I could recall all my learnings in classroom and apply it to professional work.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

Cons

First is regarding the issued laptops. At the start of our internship, some of our co-interns

waited for their laptops to be ready for claiming but it lasted or a week or more before it was

issued to them. During the time that they didn’t have laptops, they were given clerical tasks,

footing or nothing. Next is the weight of the issued laptop to interns is considerably heavy. It will

be a negative factor since our fieldwork to the client is one or two rides away from SGV

building. Undeniably, working overtime is present in this nature of work especially we are on a

busy season wherein there are workloads that are needed to be finished but we don’t get that

much pressure from our seniors or associates. It is more of pressuring ourselves. There are some

inconveniences when it comes to fieldwork. Before we go to our designated fieldwork, we still

have to go to the SGV office to get our laptop and then return it back to the SGV office again

before going home.

Overall.

The tasks and works assigned to us has provided a big challenge that exercises one to be

more responsible. This has taught us to be versatile, to plan well and accomplish tasks, that is

due. Tasks are very challenging but at the same time meaningful as well. There are lots of

pressure that you can experience working in this company especially that you have to remember

that you are just not an intern but you should act and think like an auditor or one of the

associates.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

As an Industry Player

SGV became a member practice of one of the largest professional services firms in the

world, Ernst & Young Global Limited (EY), in June 2002, which has given SGV a competitive

advantage in terms of global engagement that helps train its people and develop new solutions

for clients. The issues and concerns that are needed to be addressed. First is their high turnover

rate which would mean that there are overworked employees who have had increased workloads

and responsibilities and loses their motivation to work. New employees are not immune. They

too may suffer from low morale as they struggle learning new job duties and procedures. Second

is the tradeoff between quality and number of clients. They should always give quality services

for their clients.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

RECOMMENDATION TO IMPROVE HOST COMPANY

To be part of SGV & Co., I can say that it helps the intern to gain preliminary knowledge

about the workplace and they enable us to apply the principle and concepts taught by our

professor. However, there are also factors to be improved. First, there must be proper monitoring

of the performance of the trainee in the company. Second, the time should be adjusted; it’s tough

for interns for an early attendance considering the traffic and the distance. Third, employee

should know what task to be given to an intern. Fourth, I suggest that the employee should

discuss first the task given to us. And lastly, they should provide a better working environment.

Advice to management

The management should give importance to their employees especially those who are in

the assurance department. The effort and time that each employee invests to their work has

completely outweighs the salaries and benefits that they receive. Sad and dissatisfied employees

won't work beyond the expected, thus, it will result to not providing exceptional client services.

Hope they could hear their people and take good care of them so that they will deliver the better

results and the best in them.

Building a better working world may start to those people who could actually provide it

by having a better working environment for them.

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 FAR EASTERN UNIVERSITY
Institute of Accounts, Business and Finance

DEPARTMENT OF INTERNAL AUDITING

SUMMARY OF ACCOMPLISHMENT

Personal Accomplishment

 Communication and interpersonal skill

 Confidence

 Manage deadlines

 Analytical skill

 Build confidence

Career Accomplishment

 Confirmation letter  Reconciliation of Accounts

 Test of details Receivable

 Bank Reconciliation  Lead Schedule

 Preparation of BIR forms  Vouching of Sales Invoice

 Vouching of Liquidation  Vouching of selling and

Report expenses

 Footing and Cross-footing  Payroll

 Summary of Minutes of  Roll Forward of Audit Report

Board Meeting and Financial Statements

 Vouching of Statement of

Advances
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