Internship Report on Pricewaterhouse Coopers - Research Paper Example

? of college and department Internship Report on PwC Employer of internship advisor and ID number Submission date Executive summary This report focuses on the PricewaterhouseCoopers. The report revolves around PwC Middle East, a member firm of the global PricewaterhouseCoopers International Limited. It tells of my experience as an intern at the firm. The report gives an overview of background of PwC in terms of its formation mergers to become what it is now. The firm’s global activities and operations are also highlighted in the report. A summary of PwC’s SWOT analysis explaining the firm’s strengths, weaknesses, opportunities and threats is shown after the organizations’ organizational structure. An analysis of the firms marketing and competitive strategies is also included in the report. The strategies have a focus on the Middle East consumer market. My job history at the organization is given, showing my roles and duties as an intern. The conceptual part of the report gives more information on the global structure of PwC, the services offered by PwC, but advisory and consultation services. The technical part details actual projects undertaken or problems handled and methodological used, limitations, finding, and suggested solutions at the end of it. The report ends with a conclusion that summarizes my overall experience as an intern at PricewaterhouseCoopers Middle East. Acknowledgment I would like to thank Dr. Kimanthi my instructor, who explained to me what to write in each section of the report. Since appreciation also goes to Mr Nabeel my direct manager at PwC, assurance division in Dharan who patiently showed me how to find information on the corporate website and provided me with additional information on the PwC. I would also like to remember my friend, Hawraa my schoolmate and internship colleague at PwC. We were able to share ideas and effectively come up with a strong report on our internship experiences. Last but not least, I would like to thank all the PwC assurance employees in Dharan division who trusted me and provided me with the opportunity to work and learn, improve my knowledge and skills so that I am a better person. Table of Contents Name of university, college and department 1 Executive summary 2 Acknowledgment 3 Introduction 6 Company Background 6 Company Activity and Size 8 Organizational Chart of PwC Middle East 10 A SWOT analysis of PwC 11 Strengths: 11 Weaknesses 11 Opportunities 11 Threats 11 Vision 12 Mission 12 Marketing Strategy 13 Organizational competitive strategy 14 Job history 14 Conceptual framework 15 Global structure of PwC 15 Services offered by PwC Middle East 16 Consulting activities of PwC Middle East 16 Technical aspect of PwC Middle East 17 Evaluation of the internship experience (Form) 19 Summary of findings and recommendations 19 Conclusion 20 References 21 PwC (n.d.). PwC Middle East Corporate Responsibility Annual Report 2010 / 2011. Retrieved December, 20, 2011, fromhttp://www.pwc.com/m1/en/publications/crannualreport.jhtml 21 Introduction PwC is an internationally recognized company with numerous firms that are in partnership with it, with its many years in the field of accountancy, consultancy and even tax related issues it has proven to be one of the world’s most reliable firm. Their aim has been to support its clients in designing, managing and executing lasting beneficial change. Change management is an essential operation factor for any given company. In this regard, PwC’s diversity and dynamism over time is stronghold in the activities undertaken by the company. Globalization has impacted on many international firms, and so has it on PwC. The consistent process of converting the world into a global village has been realized through the contribution of many internationally competitive firms. The role played by PwC in that process cannot be ignored. Client welfare and success in the pursuit of the desired goals and objectives has been the primary line of business for PwC. Its major operations are focussed on how effective the company meets the demands of its clients. Bringing affiliate firms on board has been a key driver of how well PwC manages its client base and operational portfolio. Company Background PwC is a company is a company that was formed in 1998 resulting from a major merger by two companies that is Price Waterhouse and Coopers & Lybrand. Price Waterhouse was formed in 1984 by William Cooper in London. This company was initially known as Cooper brothers after the coming together of his three other brothers. Lybrand is also known to have been formed in 1898 by William M. Lybrand, Robert H. Montgomery, Adam A. Ross Jr. and T. Edward Ross in the United States; though the cooper brothers are known to have adopted a new name Coopers & Lybrand in 1957 when they merged with Ross Bros & Montgomery and a Canadian firm McDonald, Currie and Co (McKenna, 2010, p. 13). All the firms in the three countries that is the US,UK and Canada maintained their names up to 1990 when the UK Coopers & Lybrand went in for a merger with Deloitte Haskins & Sells later transforming their name to Coopers & Lybrand Deloitte which finally settled for a unified name that is Coopers & Lybrand in 1992. By the late nineteenth century, PwC had gained recognition as an accounting firm. As a result of growing trade between the United Kingdom and the United States, Price Waterhouse opened an office in New York in 1890. The original British firm opened an office in Liverpool in 1904 and then elsewhere in the United Kingdom and worldwide, each time establishing a separate partnership in each country: the worldwide practice of PW was therefore a federation of collaborating firms that had grown organically rather than being the result of an international merger. In a further effort to take advantage of economies of scale, PW and Arthur Andersen discussed a merger in 1989 but the negotiations failed mainly because of conflicts of interest such as Andersen's strong commercial links with IBM and PW's audit of IBM. After the merger the firms ventured into professional consulting, this was a major practice even in the other re known firms that were in existence that generated huge sums of income. The fastest growing service that they offered was Management Consulting though it was cyclical. The major steering wheel for this in the Nineties was the implementation of complex integrated systems for multi-national companies. Pressure of avoiding conflicts of interests from emerging by not providing consulting services to its audit clients was building up. Since it audited a large proportion of the world's largest companies, this had started limiting their potential market. These conflicts were going to increase when additional services such as the outsourcing of ERP systems were offered. For these reasons, in 2000, Ernst & Young was the first of the Big Four to sell its consulting services, to Capgemini. PricewaterhouseCoopers is known to provide three main service lines: Tax Advisory Assurance Services Advisory - mainly consulting activities which cover Strategy, Performance Improvement, Transactions Services, Business Recovery Services, Corporate Finance, Business Valuation, Sustainability and Crisis Management in a range of specialist areas such as accountancy and actuarial advisory. Company Activity and Size PwC is known to host most of the knowledgeable and experienced staff members that offer the necessary help one may require in handling complex financial accounting related issues, this may comprise matters such as share plans, valuations, pensions, listings, conversion of IFRS, corporate treasury functions and company secretarial functions. Some of its member firms are known to audit numerous of the world’s best known companies and thousands of other organizations both large and small. Their audit approach is known to be the leading edge of best practice, with their tailored techniques that will suit each and every form of business regardless of the size and nature of an organization. With regard to all this PwC is also in the frontline in presentation of non-financial performance reports and play a great role in helping their clients respond to the need for greater transparency, improved corporate governance, and business models based on the principles of sustainability (Stutely, 2007, p.67). PwC is also known to help most of the organizations to work smarter and grow faster; they offer consultancy services to their clients to build effective organizations, help in reduction of costs, innovate and grow, manage risk and regulation and leverage talent. They also help their clients do better deals, create value through mergers, acquisitions, disposals and restructuring. They also work hand in hand with their clients in helping them develop the right strategy before a deal is concealed, PwC ensures that they execute their deals seamlessly, identify issues and points of negotiation and value, and implement changes to deliver synergies and improvements after the deal. With the changing times in the global economy people are an increasingly valuable source of sustainable competitive advantage. Most organizations have found the need to transform their businesses so as to attract, inspire, motivate, manage, develop and reward their customers so as face losing their most valuable assets, this has made PwC to move in and help forward looking businesses do this. With companies that are considering a conversion to IFRS or are committed to making the change some may already have an IFRS reporter, PwC comes in to help such organizations to come up with presentable reports no matter what challenges are experienced depending with the environment you are in, PwC helps its clients around the world to come up with accurate and meaningful IFRS financial reports (Fabozzi & Modigliani, 2003). Since tax is also one of the most important regulatory concerns creating a demand for proper internal controls and stout financial reporting procedures, PwC provides better means and ways to ensure that this is carried out to the best manner possible. Organizational Chart of PwC Middle East The following organogram shows the organizational structure of PwC in view of its activities in the Middle East. A SWOT analysis of PwC A summary of PWC SWOT analysis shows the following: Strengths: PwC boasts of the following strengths which have given it an upper hand over its competitors like Delloite and Ernst Young which are in the same industry. World’s largest private company with a presence in over 151 countries It is controlled by many countries It has a strong clientele base Weaknesses Like all firms, PwC has some weaknesses that may have pulled it down in terms of performance and overall organizational efficiency in the Middle East. These are: Adverse publicity due to law suits Lack of brand popularity Long process to make decisions Opportunities The main opportunity for PwC in the Middle East is its likelihood to benefit from growth prospects in the countries in the Middle East, like United Arab Emirates which are experiencing high GDP growth rates Threats PwC is facing the following threats: Regulatory restrictions Global economic slowdown is likely to affect the business operations of PwC. For instance, the financial meltdown of 2007 adversely affected PwC globally. Vision PwC has always been driven by a vision of becoming the number one professional services network in the world not just by size, but also from the perspectives of quality, brand, talent, revenues and profitability. Building on these concepts enhances the performance of PwC as well as that of its clients. The company considers client experience in the context of the general people’s experience to come up with the best client service in line with its vision and mission. PwC’s business strategies allows for integration of these undertakings in the daily operations of the company, thereby achieving its desired results much easily. Mission PwC is considering to ensure that as far as tax advisory, offering advisory services to its clients and assurance services is concerned, that everything is carried out in the best manner possible so as to ensure transparency and accuracy of work carried out. The business relationship that characterizes PwC and its clients is fundamental to both the service provider and the clients. Dialogue is important in the business dealings between and among all participants, so that accountability becomes part and parcel of the said business relationship. It is after this that the required impact sis felt in line with the mission statement of the company. The company has made priorities in all its all-round business undertakings, making a preferred environment of operation for both the company and the clients. Marketing Strategy With the increasing growth of markets and excessive competitive nature of markets PwC has deployed a network of E&C specialists in both the existing and emerging markets so as to ensure that their grip in the current markets still has its toll and assist in understanding and working in new markets. With regard to this PwC has ensured that it is able to offer a full scope of services ranging from strategic advice on building an emerging markets strategy, assessing appropriate opportunities, identifying partners, dealing with international and local regulations and procurement mechanisms, to capitalizing on government incentives. They also offer their expertise in international mobility to ensure the right people and skills are in place in new markets. Client segmentation is important in determining how different client needs are met. PwC identifies four tiers of client in line with the company’s client segmentation programme. The four tiers are based on the different customer needs depicted by the different clients that are served by PwC. One of the tiers is that of global and central cluster segment. This accounts for the global client base, given the different products and services demanded from PwC. The second tier focuses on the regional segment. The company itself under the umbrella of all affiliate firms identifies the regional segment of clients and further outlines a mechanism through which required services in relation to those offered by PwC are accessed. The third segment is the national segment, and the fourth is the segment of the non-targeted clients. The motives behind the creation of each identified segment vary but the primary interest is to attain maximum benefit for each segment. Organizational competitive strategy All the existing CEOs’ of all the regions are quite confident of their global growth prospects which are significantly correlated with the regions in which they operate. While a greater margin of Western European CEOs was optimistic of their overall revenue growth prospects in 2011, it’s only a small fraction that expected significant growth at home. CEOs from Asia-Pacific and Latin America, on the other hand, were more likely to foresee growth in their own regions. This clearly depicts that in relation to growth strategy, the energy has shifted from developed to emerging markets. Specifically, the globalization process of this company has made it more competitive than its rival companies. Bringing affiliate firms under the PwC umbrella has enhanced competiveness for the company. Many rivals to the company have failed to realize this benefit, thereby making PwC stand out strong in the line of its operations and business undertakings. Job history The following table shows my job history as an assistant at the audit section of the assurance branch of PwC. Assignment Time Framework Description Data Entry 3 hours Using SAP system I entered: Document Number from excel sheet Document number from excel sheet Entering of detailed customer invoice Post needed items in entry journals Audit Assignment 6 hours Read items on Employee Benefit Plans- Audit risk areas Risk areas Audited quarterly and annually financial statement reports of two clients Did some bank Reconciliations Read on the Standards used by PwC to prepare financial statements Studying 4 hours I did some studies on the audit procedures applicable by PwC Preparation of planning steps 4 hours I had to prepare a plan on how to carry out my audit Studying 4 hours I had to study and identify by myself which IFRS were applicable by PwC Conceptual framework Global structure of PwC PwC is a limited liability partnership (LLP) and thus, it is very different from a corporation. It is a collection of member firms which run autonomously in their respective jurisdictions. PwC Middle East is a member of the global firm. The senior partners of member firms sit on the global board of partners. The umbrella company, known as PriceWaterHouseCoopers International Limited, which is UK-based, provides coordination. The chairman is Dennis Nally, since 2009. PwC has been in existence for long duration of time not because of financial factors but due to the attributes that it bears, PwC is known to provide consultancy services to some of the huge companies globally and even help in ensuring that most organizations prepare their financial statements in the best manner possible keeping in mind of the IFRS that form part and parcel of each and every accounts prepared by every organization. PwC has also helped organizations to be at par with the emerging trends of carrying out business activities in an internationally recognized manner. Services offered by PwC Middle East PwC Middle East has three main service lines. These are: Assurance services Tax Advisory: this deals with international tax planning, issues of compliance with the local countries’ tax laws, human resource consulting, customs and transfer pricing Advisory: the main scope of this is the consulting activities covering, performance improvement, strategy, business valuation, corporate finance, Business Recovery Services, transaction services, sustainability and management of crisis. These are done in a scope of specialist areas like accountancy and actuarial advisory. PricewaterhouseCoopers’ service lines tackle the market in the Middle East countries by the broad industry specialisation as follows, according to its website: Financial Services (FS), Consumer and Industrial Products and Service (CIPS) Infrastructure, Government and Utilities (IG&U) Technology, Information, Communication and Entertainment (TICE). These services may have slight variations depending on the territories. Consulting activities of PwC Middle East PwC has come up with a wider range of consultation initiatives in the Enterprise Risk Management (ERM) framework. This includes effort to assist corporations in the Middle East with outsourcing. Through its parent company, PwC Middle East does global risk assessment with political risk advisory firm Eurasia Group. PwC Middle East includes in its advisory services, 2 actuarial consultancy departments namely Actuarial and Insurance Management Solutions (AIMS) plus a sub branch of Human Resources Services (HRS) (PwC Website, 2011). Actuarial department’s scope involves life insurance, no-life insurance, investments and pensions. HRS deals largely with pensions while AIMS specializes in life and non-life insurance and investments. Technical aspect of PwC Middle East PwC Middle East has been able to undertake various projects in its area of operation which includes the following countries: Bahrain, Egypt, Jordan, Iraq, Kuwait, Lebanon, Libya, Qatar, Oman, Saudi Arabia, United Arab Emirates and Gaza. In an attempt to become one of the top accounting firms in the Middle East, PwC Middle East has dealt with a variety challenges which form part of its weaknesses and opportunities as was shown in its SWOT Analysis early on. The following part shows the possible challenges and their solutions as tackled by PwC Middle East. Hiring Saudis (Saudisation) Most Middle East countries have put in place various policies and regulations to ensure their interest are met in view of globalization, which has seen multinational corporations coming in to do businesses. Saudi Arabia for instance has put in place the policy of Saudisation. This is a national policy to encourage employment of Saudi nationals in the private sector (Tripathy, 2007). As of 2006, the private sector had a big number of expatriate workers from Southeast Asia and a few others from western countries. PwC has been compliant and this is evident in its awarding of contracts by the government of Saudi Arabia. Retaining Employees Employees are the most important asset in any organization and PwC has done all it can to retain its employees and derive the best out of them. It has done this through timely processing and complying with the governments’ regulation of the expatriates’ visas. This had made sure its employees have complied and have time to work in the relevant countries of operation. Matching employees’ benefits against those of competitors is another way that PwC has been able to retain its employees (PwC Website, 2011). Maintaining high quality work to satisfy clients PwC Middle East attempts to maintain high quality work in all its Middle East counties of operations. It has been able to exceed its client expectation through its timely provision of consultation and advisory services. In 2005 it become the first firm to establish specialist tax and consulting teams including mergers and acquisitions, international tax, indirect tax as well as teams providing industry focussed solutions. In 2010 it established a dedicated legal capability which provides legal advice alongside the market leading practice. All this has been fuelled by its ability to regulate and report client requirements in a timely manner. The challenge that is posed by the duties carried out by PwC is the risk of fraud that may arise if some of the tasks are not carried out in the manner that is considered by the available provisions and accounting standards. One may try to conceal some of the omissions and frauds committed at the benefit of both parties; PwC has tried to ensure that their staffs is of great integrity and ensured that its tasks are carried out by greatly qualified individuals hence minimizing the level of discrepancies involved. Evaluation of the internship experience (Form) Reading the E-learning courses improved and enriched my knowledge about different topics such as; Well Managed Audits, Quality Review Partner, Confidentiality and Privacy Course, Review and Compilation Engagements. Meeting new employees helped me to have more confidence in myself, learn about different backgrounds and cultures, See how different people with different backgrounds will have different ideas and different points of views and improve communication and negotiating skills. I also learned more about PwC values, UAT Testing and how it is performed, SAP and the different types of files that are contained in SAP and how to identify material accounts balances in the financial information and what kinds of tests should be done. Doing the reviewing and checking parts also improved my skills tremendously in mathematics skills, accounting skills, auditing skills and problem solving skills. Summary of findings and recommendations Taking my internship training at PwC has had a great impact in me as I have attained some of the necessary skills that I never had before that will help me in my day to day activity as I carry out my accounting activities in various places of employment. In this view I would recommend that the training facilities for PwC are expanded so that more interns can be able to join the organization and be trained. This would equip more students with the skills for internship. My other recommendation is the PwC considers recruiting the interns when they complete their university degrees. Since these students have learned about PwC and its operations, they would easily fit into the organization’s workforce. Conclusion I hereby note that my short term at PwC enabled me to attain the most reputable experience ever, this is because with the available information that was given to me and the first hand training that I received I am now able to carry out any accounting, audit and even consultancy work to my best of knowledge. The knowledge base-experience combination has sharpened my suitability in this line of study. I can handle more tasks than it would have been the case without my attachment to PwC. Most importantly, applying theory to practical undertakings has enhanced my accounting, audit and overall consultancy, given the knowledge base available to me. The company provided efficient tools of work, making it easier to perform the required duties. Effective discharge of duties and responsibilities is core to not only personal success, growth and development, but also to the desired goals and objectives of the company. References Fabbozi, F. J & Modigliani, F. (2003). Capital markets: Institutions and markets. New York: Prentice Hall. McKenna, F. (2010).Unholy Alliance: PricewaterhouseCoopers and Its Relationship with AIG and Goldman Sachs during the Financial Crisis. New York. Amazon Digital Services. Peters, E. (1994). Fractal market analysis, applying chaos theory to investments and economics. New York: John Wiley and sons. Stutely, R. (2007). The Definitive Business Plan. Great Britain: Pearson Education Limited. Tripathy, K. (2007). Financial services. Boston, MA: PHs learning. PwC (n.d.).Arab human capital challenge. Retrieved December, 20, 2011, from http://www.pwc.com/m1/en/publications/arab-human-capital-challenge.jhtml PwC (n.d.).Communications Review: Shifting Sands. Retrieved December, 20, 2011, from http://www.pwc.com/m1/en/publications/communications-review-shifting-sands.jhtml PwC (n.d.). PwC Middle East Corporate Responsibility Annual Report 2010 / 2011. Retrieved December, 20, 2011, fromhttp://www.pwc.com/m1/en/publications/crannualreport.jhtml Read More