Graham Gibbs - Reflective Cycle
Description
One of the tasks I was assigned to during the audit engagement was to complete an audit procedure, ‘Reviewing of journal entries’. This audit procedure involves reviewing the journal entries recorded in the general ledger. This involves checking the completeness, reasonableness and accurateness of the journal entries, to ensure that no fictitious journal entries have been passed.
What sense can you make of the situation?
One of the challenges I faced was difficulty in finding the necessary documents required for vouching due to the volume and the different types of documents. Some examples of the types of documents required were journal vouchers, official receipts, payment vouchers, goods received notes and so on. Moreover, the client changed their filing system during the financial year, which made it difficult for me to find the documents. For the first half of the year, the documents were filed based on journal vouchers, payment vouchers, cash vouchers and so on. However, for the second half of the year, the documents were filed based on the banks. To resolve this, I asked the respective clients who were in-charge of the respective sections for the location of the files and documents. I also took notes to remember the location of the files, which would also allow me to return the files to their original locations with ease after usage. When I am still unable to find the documents in the files, I would then compile a list of the documents and email the client to enquire.
Another challenge I faced was difficulty in completing the working paper. There were various and numerous journal entries recorded in the financial year, thus the volume of the journal entries was large. Vouching all the journal entries for this audit procedure and completing the working paper would require time. Hence, I raised the issue to my senior, and to resolve this, the remaining was delegated to the audit team members. As there were 6 people working on the audit working paper, we were able to complete the audit working paper before the assigned deadline.
Conclusion
Personally, I gained soft skills as I had to communicate with the client on various occasions, through both written and verbal forms. When emailing the client, it was important to draft the email accurately, clearly and concisely, to reduce any miscommunication and confusion.
During the second half of this task, as work was delegated to the other colleagues, I learnt how to guide and coach my colleagues. As the documents were difficult to locate, I answered their queries and guided them to ensure that they would be able to complete their section of the audit working paper allocated to them effectively and efficiently. Eventually, I had to collate the outstanding issues from the team and send an email to client to request for their assistance in obtaining the remaining outstanding documents.
What will you do differently in the future?
One of my weaknesses would be difficulty in remembering information given by clients regarding the exact location of the files and documents. To overcome this, I made sure to take notes to remember the locations of the files and the documents. One of my strengths would be being able to assist and guide my colleagues professionally and patiently to ensure completion of their respective portions of the working paper.
Reflection
This would value add to my self-development and market readiness as being able to communicate professionally and effectively is important at work and in society. Liaising between the members and the client was crucial to ensure that there is no miscommunication and confusion. Minimising miscommunication would also allow me to receive the necessary documents I required quickly without much delay.