Kotebe University of Education

Department of Accounting and finance

Internship Report

Name ID
Nahom Endalamaw Ayalew ugr/15354/12

Hosting Company: Ministry of Revenue

Submitting date: Nov 14, 2022

 DECLARATION

I, Nahom Endalamaw, hereby declare that, unless otherwise stated, this document
is entirely my own work and has not been submitted in whole or in part to any
other institution.

I also declare that this internship report is towards the partial fulfillment of the
requirements for the course of practical attachment.

I prepared it on my own after working for a month at the ministry of revenue's

eastern Addis Ababa branch office.

Nahom Endalamaw

Id: ugr/15354/12

Date; Nov11, 2022

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 ACKNOWLEDGMENT

To begin with, I want to express my gratitude to God for bestowing upon me the
grace, fortitude, and devotion required to successfully complete this internship
report.

I would like to extend my sincere gratitude to everyone who gave me the chance to
finish this report. I put effort on this project. However, without the generous
support and assistance of many people, it would not have been feasible.

I also want to thank the accounting department for encouraging me even after they
had given me the theoretical information that served as the foundation for the
practical work I did during my internship.

I want to publicly thank Mrs. BANCHIALEM, HR MANAGER, for letting me

complete my internship at the Ministry of Revenue.

I am grateful to Mrs. WOINSHET, SENIOR INTERNAL AUDITOR, for her

unwavering encouragement and inspiration throughout the project, as well as for
her important recommendations, direction, and informational assistance.

Not least among other things, I express my gratitude towards my parents and
family for their continuous support during project period.

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 EXECUTIVE SUMMARY

This internship report paper presents the background of the institution, company
profile, intern completed throughout the internship time and assessment of the
project by listing out conclusions and recommendations in sequence.

This internship report document is based on the one-month long internship

program that I had successfully completed in the auditing department.

It conveys the outcome of the experiences that have been faced in the professional
world of finance arena. I have upgraded different accounting software skills,
overcome challenges created in auditing different firms, communication skill and
team playing skill and practical and theoretical knowledge.

I have suggested conclusions and relevant and achievable recommendations.

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 LIST OF TABLES/FIGURES

 MOR latest logo (fig1.1)

 New MOR organizational structure (fig1.2)

 Audit process and procedure(fig2.1)

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 LIST OF ACRONYMS

MOR Ministry of Revenues

ERCA Ethiopian Revenue and Customs Authority
ESLSE The Ethiopian Shipping and Logistics Service Enterprise
AABE Accounting and Auditing Board of Ethiopia
OAG The Office of the Auditor General

IFRS International Financial Reporting Standards

NGO Non-Governmental Organization
KUE Kotebe University of Education

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Contents
DECLARATION..........................................................................................................................................1
ACKNOWLEDGMENT.............................................................................................................................2
EXECUTIVE SUMMARY.........................................................................................................................3
LIST OF TABLES/FIGURES....................................................................................................................4
LIST OF ACRONYMS...............................................................................................................................5
CHAPTER ONE..........................................................................................................................................7
INTRODUCTION........................................................................................................................................7
General Introduction...............................................................................................................................7
BACKGROUND AND OVERVIEW OF THE INSTITUTION.............................................................8
Background Details..................................................................................................................................9
Missions and Goals of MORs................................................................................................................13
MAIN PRODUCT OR SERVICES..........................................................................................................14
STAKEHOLDERS OF THE ORGANIZATION...................................................................................15
CHAPTER TWO.......................................................................................................................................24
INTERNSHIP EXPERIENCE.................................................................................................................24
HOW AND WHY I SELECT THE INISTITUTON..............................................................................24
General Definition of Audit Process and Procedure..........................................................................25
Planning..............................................................................................................................................28
Collection of audit evidence..............................................................................................................28
Controlling and recording.................................................................................................................28
Review and opinion............................................................................................................................28
PIECE OF TASKS I WAS EXECUTING...............................................................................................29
PROBLEM ENCOUNTERD DURING THE INTERNSHIP...............................................................32
SUMMARY OF MY WORK SESSION DURING THE INTERNSHIP.............................................34
CHAPTER THREE...................................................................................................................................36
THE OVERALL BENEFITS I GAINED FROM THE INTERNSHIP PROGRAM.........................36
How the work was undertaken relevant to what I studied at school....................................................42
Overall performance rate......................................................................................................................43
CONCLUSION..........................................................................................................................................44
RECOMMENDATION.............................................................................................................................45

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 CHAPTER ONE

INTRODUCTION

General Introduction

The internship program is an essential one that supports graduate students in their
final semesters. Every student is required to complete an internship in a field that is
relevant to them. After finishing your courses, it helps with the actual tasks you
have to do in your line of work.

It intended to put classroom theories into practice so that students could grasp what
is being taught in the classroom and what is being done in the field. To determine
whether theoretical standards, rules, regulations, concepts, customs, and processes
can actually be applied in any organization, a logical comparison has to be made.

An internship is a field-based practical training experience that prepares trainees

for the tasks they are expected to perform on completion of their training.
Internships are a popular method of experiential learning where students come face
to face with the real world of work and its complexities, something that cannot be
replicated in the four walls of the classroom.

Many experiences are at play even if the majority of internships are merely part-
time jobs or voluntary work within a corporation. This is why an internship report
is crucial because it serves as the official record of the intern's employment
experience. Additionally, interns with excellent backgrounds or experiences in the
report will have their reputation as candidates for jobs in related fields boosted. As
a result, graduates won't find it difficult to compete with other candidates on the

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Job Application Form. The purpose of this program is to bridge the gap between
the theory and the practice of coursework learnt in the University.

BACKGROUND AND OVERVIEW OF THE INSTITUTION

The organization in charge of collecting money from domestic taxes and customs
fees is called the Ethiopian Revenues and Customs Authority (ERCA). The ERCA
is tasked with not just increasing money but also safeguarding society from the
negative impacts of smuggling. While facilitating the legal passage of goods and
persons across the border, it seizes and prosecutes the individuals and vehicles
implicated in the act of smuggling. The Ministry of Revenues, the Ethiopian
Customs Authority, and the Federal Inland Revenues were combined into one
enormous body on July 7, 2008, giving rise to the ERCA.

It is commonly understood that every government seeks to raise revenue, mainly

through taxation, in order to pay its expenditure on infrastructure development.

The Ethiopian Revenue and Customs Authority is in charge of collecting money

for the federal government in that country (Hereafter cited as the Authority). The
Authority is in charge of facilitating the legal passage of people and products
across the border in addition to collecting taxes. The Authority also concentrates
on any individuals or vehicles that may be involved in smuggling, which is the act
of bringing into or removing out of the nation products on which customs duty and
taxes have not been paid as well as goods whose importation or exportation is
forbidden by law. The Authority carries out audits, investigations, and criminal
prosecutions. The Authority closely collaborates with the Federal Police, the

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Standardization Authority, the Ministry of Health, the Immigration Service, and
other stakeholders in an effort to fulfill its role.

Background Details
The Authority is regarded as "an autonomous federal agency with its own legal
personality," as stated in article 3 of the proclamation no. 587/2008. The Ministry
of Revenue, Ethiopian Customs Authority, and Federal Inland Revenue Authority,
which were formerly tasked with raising revenue for the Federal government and
preventing contraband, merged to establish the Authority on July 14, 2008. Since
there are many different and complicated reasons why the aforementioned
administrations were combined into a single independent Authority, it would be
important and appropriate to emphasize its history, goals, organizational structure,
etc.

Some of these reasons are listed below.

1. Laying the groundwork for modern tax and customs administration,

2. Reducing bureaucracy or avoiding unnecessary and redundant procedures that

cause delays and are viewed as ineffective in cost.

.3. To be far more effective and efficient in storing and using information,
promoting law and order, using resources and providing services,

4. Raise the efficiency of the revenue department to a high level. A lengthy

research process called "business process reengineering" took place before steps
were taken to bring about the aforementioned merger of regimes.

The survey was conducted over a year and a half beginning in November 2007 by
a team of officials drawn from within the government. The study examined

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selected key business processes and found that inefficient organizational structures
and unnecessarily complex procedures contributed to poor performance. The study
also revealed that corruption exists within the government, with smuggling and tax
evasion being serious problems. These problems have hampered the
aforementioned administration's attempts to successfully achieve its goals.

By 2020, the organization aspires to be a leading, just, and cutting-edge Tax and
Customs Administration in Africa, funding public expenditures with domestic tax
income.

The organization's goal is to build a modern Tax and Customs Administration with
professional and highly skilled staff that encourage voluntary compliance among
people and enterprises and take prompt action against those who do not comply in
order to support economic development and social welfare.

ERCA will serve its customers with trust and respect, comprehend their demands,
and assist them in fulfilling their duties. They shall uphold regulations pertaining to
taxes and customs with honesty, openness, and professionalism. They will
collaborate closely with key players and make sure that women participate.

Fig.1.1 New Logo of MOR

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Objectives of the Institution

 To build a contemporary system for tax assessment and collection, and to

offer clients fair, effective service,
 To encourage taxpayers to voluntarily settle their tax debt,
 To prevent and control the sale of illegal substances as well as tax fraud and
evasion,
 To efficiently and timely collect tax income from the economy;
 To give regions the help they need in order to harmonize the federal and
local tax administration systems.

Developing the Culture of Voluntary Tax Compliance

The goal of this strategic alliance is to develop a culture of voluntary compliance,

which includes designing and implementing a compliance strategy. This strategy
includes educating taxpayers through various communication channels, helping
them to voluntarily meet their obligations, and authorizing them. The Directive
also includes prosecution of taxpayers who fail to comply with the tax law.

Building Digital Revenue Administration System

This strategic direction aims to support tax and customs administration with
modern digital information technology system. Digital revenue administration
system works to achieve the mission of the Institution by providing clear, simple,
and accessible service to the customers, reducing compliance costs and ultimately
ensuring taxpayer satisfaction.

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Ensuring parity in tax and customs administration

Smuggling, illegal trade, tax fraud, and the spread of the informal economy have
prevented the country's tax administration system from becoming accessible and
tax laws uniformly enforced. This direction is therefore aimed at ensuring tax
fairness by bringing new taxpayers into the tax net and uniformly enforcing tax
laws.

Strengthening Domestic and Foreign Strategic Partnership

Ensuring successful tax and customs administration requires working with

stakeholders and partners to share a vision. Therefore, this direction focuses on
building partnerships to receive technical support, knowledge transfer, information
sharing, and the fight against tax crime and illegality. Additionally, we identify,
create and manage partnerships through strategy, continuously monitor progress
and resolve issues to ensure partnerships are mutually beneficial.

Develop a strong work culture

These aims to empower our human resource, internalized the vision, mission and
values of the Institution, and develop a strong work culture and ultimately make
the tax system effective. It also includes designing human resource strategy,
attracting and retaining human resource, designing and implementing performance
evaluation and recognition system, creating conducive of working environment,
and finally developing honest, motivated and professional leaders and
implementers.

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Missions and Goals of MORs
Implementing nationally harmonized tax administration aims to create a
harmonized tax administration system at the federal and regional levels so that the
tax system will be able to collect revenue generated from the economy, support
and encourage investment, encourage family and competitive market, create strong
economic bond between Federal and Regional/City Administration and also
between Regions and City Administrations.

In summary;

 Providing technical support that enable to equally implement tax

administration activities in all Federal and Regional/City Administrations;
 Designing and implementing monitoring and support system in accordance
with the existing condition of regions. And also ensuring regional
governments implement tax laws and administration in a consistent and
similar way
 Implementing information system at national level to ensure strong
information exchange and utilization at federal and regional tax
administrations
 Conducting coordinated operational activities between the federal revenue
branch offices operating in regions ad regional revenue authorities on law
enforcement,
 Educating tax payers, capacity development and related tax issues to
improve the revenue collection.
 Evaluating the performances of tax, policy and administration, indicating
solutions and monitor their performance through establishing
communication channels (i.e. Consultation forums) with regional institutions
of the revenue and finance sector;

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  Ensuring joint revenues and withholding taxes are transferred to the revenue
owners (regional/city administration revenue authorities) on time.

MAIN PRODUCT OR SERVICES

As the organization in charge of collecting money from domestic taxes and
customs fees is ERCA, ministry of revenue is capable of giving different services
to the citizens.

These Services includes:

 E-TAX

 E-Service

 Vehicle Verification

 Complaint portal

 Customs Tax Calculator

 Income Tax Calculator

Accountable institutions

There are also some Accountable institutions to MOR

 Customs Commissions

 Single window

 National lottery

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 Partners

 Prime Minister Office

 Ministry of Finance

 Investment Commission

Address

 Location: Addis Ababa, Ethiopia

 Email: [email protected]

STAKEHOLDERS OF THE ORGANIZATION

The government and taxpayers are the main stakeholders of the institutions.

ERCA stakeholders are those who benefit from services provided by ERCA and
everyone who has an interest in tax administration. They include:

 Taxpayers

 Government Ministries, Departments and its Agencies

 Courts of Law

 Tax Consultants and Clearing & Forwarding Agents

 Tax Appeals Board and Tribunal

 Financial Institutions

 Private Sector Institutions

 Development Partners
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  Non-Governmental Organizations

 General Public

As stated above, one of the objectives of MOR is identifying strategic issues for
partnership with stakeholders and the bodies to which the partnership is created,
creating relations, signing Service Level Agreement and implementation.

Government and tax payers are the main stake holders of the institutions. ERCA
stake holders are those who benefit from services provided by ERCA and everyone
who has interest in tax administration

Accordingly, the main stakeholders for whom the partnership is created are:

 Ministry of Finance,
 Ministry of Trade and Industry,
 Ministry of Transport,
 Ministry of Education,
 Ministry of Peace,
 Ministry of Agriculture,
 Ministry of Innovation and Technology,
 Ministry of Foreign Affairs,
 Ministry of Mines and Petroleum,
 Ministry of Health,
 Ministry of Science and Higher Education,
 the Federal Attorney General,
 National Bank of Ethiopia,
 Ethiopian Investment Commission,
 Plan and Development Commission,

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  Federal Police Commission,
 Regional and City Administration
 Ethiopian Shipping and Logistics Service Enterprise (ESLSE),
 Ethio -Telecom,
 Ethiopian Airlines,
 Banks and other financial institution
 Business Sector Associations,
 Tax and Audit Professionals
 NGOs,
 Professional Associations of Accountants and Customs Transistors.

ORGANIZATIONAL STRUCTURE AND WORKFLOW

It is critical that the organizational structure of the Ministry of Revenue be aligned

with its mission, vision statements, and its objectives in order for the organization
to operate effectively and efficiently and achieve its goals. Resource levels and
capacity means having the right people in the right place at the right time.
However, it is not just a matter of having enough staff. An extremely important
part of the internal operating environment is ensuring that staff has suitable
knowledge, skill, experience, motivation, tools, equipment, training, support, and
integrity in order to discharge their assigned duties and retain the public’s trust. In
addition, the allocation of human and other resources must be made according to
risks in the general environment.

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Prime minister office; is responsible for societal policy planning and issues that
do not fall within the mandate of any other ministry.

Internal audit director; develop internal audit policies, procedures, and work
standards by applying the appropriate audit methodologies. Conduct
comprehensive audit examinations to identify appropriate controls, key business
risks, and compliance with state and federal rules and regulations.

Minister; forms part of the policy and decision-making process that is central to
government action. The processes and discussions of Cabinet are confidential,
unlike those of Parliament, and it is only the decisions which emerge.

Tax transformation office; is to support and track the implementation of a series

of tax reform initiatives by enhancing escalation channels and reporting
mechanisms across ERCA’s hierarchy and systems.

Customs commission; control the import and export of prohibited or restricted

goods; to prevent and control customs.

Tax IT development and administrations director ; will drive the development

of innovative ideas to extend client services, provide support to ensure timely
completion of tax projects, address client concerns for immediate resolution and
maintaining up-to date knowledge about company standards, policies and
regulations.

IT Infrastructure and Operations Director; is responsible for all aspects of IT

operations including: planning, organizing, implementing and monitoring the Data
Center Operations and all end user support services.

Women children & youth affairs director; basically facilitates, coordinate and
promote participation of female students at all levels by ensuring gender equality

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and leading legitimate fight against forces that become stumbling block in their
education and career path in the university.

Enterprise risk and ethics liaison director; trains staff and creates awareness on
risk, compliance, and ethics topics. Serves as the unit's point of contact for the Risk
Management Division.

IT center; is place from which enterprise information technology (IT)

administrators -- either internal or third party -- supervise, monitor and maintain a
telecommunications network.

Strategic plan and projects Administration director; the Director will support
Department Leadership in strategic planning as well as oversee portfolio and
project management processes and tools. The director will also support the
development of long-term goals and strategic objectives and identify, analyze, and
monitor issues that affect growth, cost and productivity.

Strategic partnership director; is responsible for building strong business

relationships with clients, closely working together to achieve long-term goals and
objectives.

Advisors to minister; provides timely, high level assistance to the Premier,

Minister and Parliament team's daily operations, project work and fosters key
stakeholder relationships. Ensures effective, accurate and timely advice is provided
to the Premier, Cluster Ministers and DPC Executive.

Communications Directors; create and manage communications strategies.

Toward that goal, they leverage a variety of communications skills as well as
multiple years of experience working in domains such as PR, marketing and
advertising campaigns.

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National lottery administration; fund projects and activities that transform
communities, protect our heritage, and enrich lives through arts, sports and culture.

Tax operation division; provides reports to management through Warehouse

Management Systems and Excel spreadsheet applications to track, analyze and
report production numbers.

Taxpayers registration and Service Director; should take measure to assure the
completeness of taxpayer's registration. It has three basic functions: creation,
updating, and deletion.

Return filing and processing Director; ensure proper arrangement, careful

storing and easy availability of records.

Tax debt management director; Serve as liaison with credit rating agencies.
Track capital project authorizations, bond issuances and expenditures. Coordinate
the preparation of the debt service budget with the Department of Budget and
Management.

Tax review office; produce error-free tax forms on behalf of a client to maximize
their financial health.

Revenue account administration director; develop and implement pricing

strategies, manage inventory, and oversee yield management. This position will
also be responsible for analyzing data and trends to make recommendations on
pricing, promotions, and product mix.

Tax policy harmonization and Regional support director; eliminates

interactions between countries, and equalization of tax rates.

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Tax compliance division; is responsible for the enforcement of all tax laws
administered by the Comptroller and administering the Uniform Disposition of
Unclaimed Property Act.

Taxpayers Education director; boosts the willingness of individuals and

businesses to voluntarily pay tax, and play a vital role at the heart of mobilizing the
tax revenues urgently needed to help achieve the Sustainable Development Goals.

Risk and tax compliance strategy director; consider the structure of the tax
authority, human resource capacity, resource allocation and the role of technology.

Tax fraud investigation director; investigates cases of suspected serious and high
value tax fraud and tax avoidance. Examines the evidence to determine whether or
not a fraud occurred, how it occurred, who was involved, and how much money
was lost.

Tax data and cash register administration director; manages transactions with
customers using cash registers. Scan goods and ensure pricing is accurate.

Tax audit director; conducts internal audits to ensure compliance with tax
regulations, analyzing and evaluating accounting systems and tax control units to
reduce taxes, maintaining required tax documentation, assisting companies with
tax returns and preparing tax audit reports.

Legal service director; is responsible for facilitating quality delivery of legal

services. The Legal Director leads, manages, and supports legal personnel who
provide direct client representation and serves as lead counsel or co-counsel in
major litigation including class action lawsuits.

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Organizational capability & support division; They focus on the organization's
assets, resources and market position, projecting how well it will be able to employ
strategies in the future.

Human resource management director; plan, lead, direct, develop, and

coordinate the policies, activities, and staff of the Human Resource (HR)
department, ensuring legal compliance and implementation of the organizations
mission and talent strategy.

Tax and custom training center; provided technical assistance to the Institute of
Tax and Customs Administration (ITCA) to build its capacity to deliver training
and consultancy services

Research & Development Director; plan, direct and coordinate the research and
development activities of an enterprise or organization or of enterprises that
provide related services to other enterprises and organizations.

Procurement & Finance Administration Director; lead the provision of high

quality financial expertise and procurement solutions, to deliver our new strategy
and lead the work already underway to increase our impact and create a financially
sustainable future for the charity.

Property Administration & General Service Director; responsible to plan,

direct or coordinate general and administrative services of the company including
facilities planning and maintenance, property Insurance and other office support
services.

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Fig. 1.2 Organizational Structure of MOR

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 CHAPTER TWO

INTERNSHIP EXPERIENCE

HOW AND WHY I SELECT THE INISTITUTON

As an accounting student, I was looking for a job that is highly related to it, and
then I directly surfed the internet to get information about the internship. While
searching for the internship I just realized how taxation and auditing are crucial for
the field and start looking for the right institution for me. After many attempts, I
got information about MOR from a close relative who often gave training under
AABE.

Here are the reasons How I select MOR for the internship

 The skills section on a job applicant’s resume can be almost as important as

the experience section for the future, so I want it to be an accurate portrayal
of what you can do in the field.
 The MOR has a strong and steadfast commitment to ensuring equity,
diversity and inclusion.
 This profession provides critical expertise to all types of businesses.
 Most intern Students gain knowledge about practical aspects of the
functioning of an organization on the domestic and foreign markets with a
special emphasis on finance/ accounting management in public
administration, private sector, non-governmental organizations, self-
employment and others.

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An audit is an attest function whereby Accountant independently examines
financial information of an entity and produces a report on the subject matter or an
assertion about the subject matter which is the responsibility of another party (e.g.
Management). thus, it need well trained personnel. Without a doubt, both company
and society benefit from the independent audit function. Investors, creditors, and
regulators are just a few of the many third parties who rely on independent
auditors' expertise and moral character.

The information that the decision maker has access to usually forms the basis of
economic decisions. Users should have reliable and relevant economic information
in order to profit the most. There is a demand for accounting and auditing services
as a result of this need for pertinent and trustworthy financial information.

General Definition of Audit Process and Procedure

Auditing is defined as the on-site verification activity, such as inspection or

examination, of a process or quality system, to ensure compliance to requirements.
Audits also will enable to appropriately target and measure the effectiveness of its
educational efforts, ensure that appropriate corrective actions have been taken and
quickly identify problems in the claim development and submission process which
give rise to civil or criminal exposure.

The Nature of Auditing in Ethiopia

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In Ethiopia audits seem to be done primary on account of government regulation.
For example, NGOS are audited because the assets of the NGOS are deemed a
“national asset,” the use of which is ultimately accountable to the government of
Ethiopia.

Auditing in Ethiopia could be viewed in five main areas.

1. The office of the auditor general (OAG)

The powers and functions of the office of the OAG are given through the
proclamations that established it, its sphere of activity lies in government audit.

2. The audit service corporation. The duty and functions of this entity
involve mostly commercial audits of commercial and productive enterprises
wholly or partially owned by government.

3. Private audit firms.

4. Ministry of finance audit and inspection. Auditing activity in this area

includes audit of ministries and government departments by MF auditors and
inspectors, including tax audit by Inland Revenue authorities.

5. ‘Corporations’ and enterprises’ auditors. These are audits performed by

internal auditors within enterprise.

Audit process

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It is a sequential order of steps followed by the auditor in the examination of client
records. The audit process may vary depending upon the nature of the engagement,
its objectives, and type of audit assurance desired. The process includes
understanding the particular client's environment, conducting the auditing
procedures and tests, appraising the audit results, and communicating the results to
interested parties.

Auditing procedure

It is an auditor technique for gathering auditing evidence to substantiate the

reliability of the accounting records. The auditor evaluates whether the information
presented is logical and reasonable. Examples of auditing procedures are observing
assets to verify existence and amount (e.g., fixed assets), collecting independent
confirmations from external parties (e.g., bank confirmation), evaluating internal
control, appraising management's activities, and obtaining management
representations.

AUDIT PROCCES AND PROCEDURRS

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 Planning
In order to assist in a disciplined approach to planning and to ensure compliance
with IFRS, documentation enabling a record of planning to be kept, demonstrating
the approach adopted for each audit and the reasons for that approach.

Collection of audit evidence

The APM audit programs are comprehensive and designed to deal with most
eventualities. However, it is crucial that the programs are tailored to meet
particular circumstances of the client.

Controlling and recording

This section provides detailed guidance on the use of the documentation, including
the way in which the forms should be completed for the preparation of a well-
documented audit file.

Review and opinion

This section deals with how partner can review the overall audit and form an
opinion. APM provides some checklists which can be used to review the overall
performance of the client.

Collection of Controlling & Review &

Planning
PP
recording opinion
Evidence

Fig. 2.1 Audit Process and Procedure

PIECE OF TASKS I WAS EXECUTING

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After being granted the internship, I was assigned to the risk assessment
department of MOR

 Review and Evaluation of the plan.

 Risk Assessment & Management Risk assessment: the identification of
hazards that could negatively impact an organization's ability to conduct
institutional operation. These assessments help identify these inherent
business risks and provide measures, processes, and controls to reduce the
impact of these risks on company operations.

 Identification of Risk.
 Assessment Risk.

Potential Risk Treatments:

Risk Avoidance,
Risk Reduction
Risk Retention
Risk Transfer

After two weeks of periods, I was assigned to the domestic tax division under the
general auditing division and the small and medium audit tax division. This
department's tasks included computerizing the data and analyzing local purchases,
sales, and expenditures with the goal of identifying understatements and
overstatements that result in tax evasion by taxpayers.

 The specific objective was to realize the contribution of MOR to

development of the country.

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 To understand the importance and responsibility of financial statements and
accounting operations in tax administration
 Payroll Processing; Payroll is a list of employees who get paid by the
company.
 Payroll also refers to the total amount of money the
employer pays to the employees
 crosscheck structuring of employee salary,
perquisites & reimbursement packages in
conformity with the rules of the Tax Laws
 Identification of Fixed assets physically and gathering evidence of
presence.
 Physical evidence: This is evidence obtained through
inspection or observation
 Data analysis: This involves use of trend analysis for
comparison purposes, examining information from same
sector to corroborate finding
 Testistonial evidence: This relates to evidence obtained
through oral written statements response queries raised
by the auditor. examples include carrying out interview
entity, survey
 Documentary evidence: This is evidence obtained from
review of sources such as files, performance reports,
databases, minutes of meetings, organization charts and
correspondences

 Reconciliation of Assets with the documents.

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  verification on daily bank reconciliation statements and
payment vouchers of suppliers;
 Computerization of assets and other accounts
 Computing taxable income from various sources
 Identifying the various tax deductions and how individuals can avail them
to reduce the tax burden in accordance to the law.
 Computerization of Bank statements, Bills of Sales and Purchases from
dose to general leger
 Desk audits: audits will generally require field visits; however, it may be
possible to undertake some basic checks from the tax office. These can be
conducted in relation to specific issue and small enterprise or employee
when the auditor is confident that all necessary information can be
ascertained by conducting the examination in the office. They can also be
used as a preliminary examination of declarations, analyzing ratios and
cross checking information to determine if further investigation is
warranted
 Preparing audit reports: on audit finalization, I have to prepare a report in
form of a rectification note that is detailed enough for the reader to
understand the issues and have a perspective on the audited activity. The
taxpayer is requested to provide their response and observations. once
taxpayer’s observations are received, the audit team organizes a meeting
with taxpayer to discuss taxpayer’s response. Subsequently issues taxpayer
with a statement of audit which summarizes the tax issues raised, outcome
of discussions, agreed and non-agreed issues. The taxpayer is required to
review the statement of audit and provide their comments. The final
rectification note is then issued to the taxpayer accompanied by the
assessment notices. The report is approved by the general and higher
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 auditor respectively depending on the tax liability charged and is given/sent
to the taxpayer.

PROBLEMS ENCOUNTERD DURING THE

INTERNSHIP AND CROSSEPOND MEASURES

 when I was performing this task there was language problem as some client
were speaking non-Amharic local languages and i was not perfect in both
spoken, written and hearing skills
 I used to contact some of senior auditor and coworkers who
were well versed with the non-Amharic language local
languages and they would help me in the interpretation.

 Sometimes the switch off of power when I was recording data disturbed me
frequently.
 concerning to this problem, I was focusing on quickly record
and save when I was entering data before activating generator
machine to light for the office.
 I met with the problem of using a scanner and running the work done online
in order to permit anyone within the system to access the work online since
the security protocol was harder.
 I got some guidance from my senior colleagues on how to work
on the machines properly.

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 At one point I was faced with huge work load which was difficult to dispose
of because the task kept getting postponed.
 Even if the tasks deadline has not yet approached yet the work
should be done timely without the need of postponing it
 I had an encounter with recording general ledger from paper to a digital form
which was time consuming and tiring task.
 Having some patience and recording the ledgers without any
misinformation and error as my immediate action
 I have faced some episodes of boredom especially while performing paper
work tasks.
 I had to diversify paper work with computer work and
sometimes get some information I need online instead of
searching it from books given the wireless internet in the office
 While on My internship training the organization didn’t provide any
personal benefits I had to cater for my meals and other expenses, being a
non-income earner, it was pretty hard as an intern.
 I had to cut off some expense and change from spending it on
unwanted expense to more important things.

 It was very challenging to relate the theoretical accounts taught in class to

that of MoR because its accounts policies, procedures and process was
different from the accounting formats used in theory. And since we hadn’t
had the auditing course yet it was a bit difficult task.
 With the help of my supervisor and some information gained
from online and books I was able to understand my tasks
efficiently

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  Since it was a governmental institution there was a limitation of institutional
and department records.
 I looked for samples that were uploaded on the internet so that I
have basic information about the transactions.

SUMMARY OF MY WORK SESSION DURING THE

INTERNSHIP AND RECOMENDATIONS

 After I got in to the internship, I was deployed in risk assessment department

which is Review and Evaluation of the plan. After the 1st week the main
tasks performed me were checking taxpayer’s payments orders, recording of
data and verifying its completeness, checking and verification of taxpayers
invoices, journals, cash books, bank statements and contracts so as to see its
accuracy, completeness and compliance required by tax audit rules and
regulations.
 After the 2nd week, my responsibility was to ensure that all records have
well entered into software the numbers of payment orders, date, amount in
figures and letters, beneficiary and checking whether they pay on the right
date. I was also responsible for making sure that its hard documents are kept
away.

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RECCOMENDATION
 During my internship program, I have acquired valuable experience on
several practical works which helped me to broaden my knowledge. I also
gained some insights on my careers future. Even though I have faced some
challenging problems I have learned how to solve them patiently. But it
shouldn’t hinder me from building relationships with my colleagues and
achieving my goals.
 I recommend that every intern should have some information about their
task beforehand so as to avoid confusion and difficulties while working.
Having a good communication skill helps to have a better relationship with
our assigned supervisor and also having additional skills like language, MS
Excel, MS Databases, Quick books Enterprise Accountant and Peachtree
accounting. And also I would recommend reading or referring to different
books which will helps us guidance in order to overcome the problem faced.

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 CHAPTER THREE

THE OVERALL BENEFITS I GAINED FROM THE

INTERNSHIP PROGRAM

This part discusses what I learned throughout the internship course, how I
improved, and what I learned again during the internship. So, over the course of
my internship's four weeks, I learned a lot from the many MOR activities. It was
indeed my area of study, and I received the proper training. Some anticipated
training results are listed below.

 Practical skills

 I got the opportunity to work with other interns and staff

members when I was an intern. My capacity for communication
and interpersonal interaction is undoubtedly crucial for
cooperation is a skill, as is the ability to cooperate with others to
achieve a common objective. In order to contribute effectively to
a team, I must be aware of both my own skills and flaws as well
as how to bring out the best in others.

 Time management skills could be used to demonstrate respect

for organizational protocol, not just for protocol but also for
work efficiency. One of the most important skills I have learned
is time management, which is a critical tool.
 Flexibility: Even the most senior-level executives frequently
need to wear numerous hats in today's workplace culture,

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 regardless of whether we're looking to intern for a startup or
well-established company. As an intern, you can find yourself
helping the sales team one day and providing customer service
the next. Even if we may be interested in a specific area of the
industry, a willingness to learn about the many departments
within an organization is unquestionably seen as a strength
 My capacity to assess, consider and make a decision based on
analysis and evaluation is referred to as critical thinking. A
person's propensity for critical thought can be seen by looking at
willingness to inquire in order to fully comprehend a situation
and to offer original answers to problems. An eagerness to learn
about the various departments of an organization is undoubtedly
considered as an asset (and also enhances my exposure inside
the company), something that many of my lecturers have
certainly stressed and that employers strongly value.
 Technical Expertise: Especially if I want to intern for a
business in a highly specialized area, I won't be expected to be
an expert in the platform that the company my application to
utilizes. However, it will be assumed that I am familiar with
computers and can use simple productivity applications.
Employers frequently mention the qualities listed above when
looking for interns or candidates for entry-level positions. Make
careful to explore my specific industry and become acquainted
with any other abilities or personality qualities that might be
valued in my line of work.
 You must possess confidence in order to develop a successful
profession, as doing so will enable you to take risks, face
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 obstacles, and open up new prospects. But it can be challenging
to accomplish that when you're starting your first job. I want to
concur that attempting new things and venturing outside of my
comfort zone are the best ways to boost confidence, and most
entry-level work programs aggressively promote both of these
behaviors.
 A Willingness to Ask for Help; as counter intuitive as it seems,
humility is just as essential for leaders as confidence. As a
student, i won’t know everything so it’s important to be
approachable and open to new ideas and ways of doing things.

 leadership skills

 Teamwork is an interpersonal skill. Employers and recruiters

are always looking for his, regardless of position. This is one of
the so-called soft or professional skills, and it is essential to
succeed in the work environment. In summary, teamwork
means that a person is cooperative and works well with others.
Team to be her player, an individual must feel part of a team,
genuinely participate in team performance, show empathy,
respect opinions and differences, and enjoy sharing knowledge
and the support of colleagues. It's about building positive,
healthy working relationships that help everyone achieve their
personal goals. Therefore, business success depends on positive
employee relationships and willingness to work together and
support each other. Communication is also important to

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 establish good teamwork. This is true for basic daily activities,
meetings, and specific projects. Therefore, employees must find
ways to develop this skill in a way that respects the company's
culture. Another value team player appreciate is trust. This is
built out of honesty and transparency. Confidence is built
especially when you are unsure about something or in difficult
situations where a particular task is difficult or planned to be
done. Can be delivered on time. During the internship, i have
the opportunity to develop your teamwork skills. You are
trained to take responsibility, speak up, be supportive, and
listen to other team members. The relationships you form are
important for building networks and gaining future referrals.
Working in a team helps you grow as an individual.

 Entrepreneurship skills

 Internships, which can be considered a means of “learning by

doing” in a real workplace environment, have a long heritage in
entrepreneurial learning,
 An internship gives me the chance to learn from established
business people that have firsthand knowledge with its
challenges and opportunities, and ventures. The entrepreneurial
community will be helpful because "influence" is crucial when
it comes to dealing with a business or endeavor.
 The main advantage of the internship is the enormous amount
of information it provides.

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  Other advantages include new ways of thinking, new ways to
foresee and control risk, motivation, and networking with
specialists.

 Interpersonal skills
 I have developed skill of creating good relation with other
associates which is very important or creating networks, asking
question and so on the ability to communicate effectively is
often related to one’s ability to relate well to others, or “people
skills.” Depending on the industry, maybe I could interact with
clients and vendors as well as my co-workers and managers.
 It’s important to be able to build and maintain relationships
and be the kind of person team members want in the office
with them every day. Interpersonal skills are also important
because employers seek individuals who can identify the wants
and needs of others and who can recognize and acknowledge
the value of differing perspectives.
 I improved my communication skills during the internship
program. I need the opportunity to demonstrate my writing
skills in my resume and cover letter. I should also have the
opportunity to demonstrate your speaking skills by
thoughtfully answering common interview questions.
 The ability to communicate effectively (the ability to translate
ideas and convey information) is important in all areas,
including managers, colleagues and clients, and employers
recognize this as a valuable skill for me.

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 Work ethics
 Setting up a productive workplace environment without
reinforcing the importance of work ethics and associated
concerns is quite challenging. One of the biggest problems in
this area, not just for one unethical employee, but for the entire
company, is punctuality. The proper work ethics in the
company are being devoted, accountable, responsible, honest,
able to integrity, obedient, and patient for every task.
Nevertheless, there is a great deal of respect for the senior
accountants and auditors, which is sufficient to complete the
task.

 theoretical knowledge skills

 abilities that allows auditing professionals to examine and
verify a company's financial information
 leaned how daily transactions are performed
 The benefit of using audit software
o Reduce the duplication of effort
o According to my observation, every auditor has
experienced the frustration of carrying out an audit
on-site, filling out reams of paperwork, then having to
return to the office to type up their notes. It's an
unnecessary duplication of effort and adds no value to
the audit process. Audits involve a lot of preparation.
It means finding the right paperwork and making

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 checks beforehand to reduce the risk of non-
conformities arising.
o By using audit software, you can instantly have
information available. If necessary, data visualization
is made simple through custom reports. No more
paperwork is required. As a result, getting ready for
an audit goes considerably more swiftly because non-
conformances are quickly identified and may be fixed
before the audit.

 Understood Gathering more information during every audit is

crucial.
 Demonstrate compliance throughout the audit trail; Working
from paper trails makes compliance difficult to prove – one
missing file and you risk non-conformances or failing the audit
completely. When your business must comply to regulations
and standards, downtime to correct issues can be very costly
Use audit software instead.

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How the work was undertaken relevant to what I studied
at school

 Even though there was some confusion at the beginning of the internship,
the tasks were similar to those I had learned at MOR because the technical
phrases used at the workplace were ones I had learned in the classroom.

Overall performance rate

 Overall, I did very well because of the abilities, experience, professional
knowledge, and practical knowledge I gained from the internship course.
Because of my work directly contributed to MOR in a positive way and the
influence of my internship, I can grade my total performance at 90%.
 My work during the internship time has confirmed that I have a lot of
talents, and my punctuality has improved. Additionally, the internship has
strengthened my computer skills by teaching me software that we were
unable to learn in class due to the COVID 19 pandemic class scheduling .

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 CONCLUSION

Over the past ten years, the Ministry of Revenues (MoR) has put a lot of effort into
implementing the revenue sector's transformation plan, which is based on the
National Growth and Transformation on Plans. The MoR funds the government's
initiatives for economic and social growth by collecting tax and customs money
from the nation's economy.

Auditing transactions mainly include purchases, sales, receipts, and payments by

an individual person or an organization/corporation. In addition, the best solution
to improve tax compliance and tax administration costs through the introduction of
online service such as, e-payment and use of electronic billing machines

In review, this internship has been an excellent and rewarding experience. I hope
that the connections I have made will allow me to help others find opportunities in
the future. It was in this period that I got an opportunity to link class theory to
practical work and I was able to gain a lot of in depth insight of what takes place
outside the classroom as indicated in this report.

My goal during my internship in the accounting department as a student was not

only to put my knowledge and abilities from various courses into practice, but also
to learn from the host organization.

My internship has helped me develop my time management and motivational

skills, among other things. I didn't think I would be able to force myself to work in
an office for eight hours a day, five days a week when I initially started. I planned
my day and work when I became aware of what I needed to do to avoid duplicating
or wasting time. I discovered that I needed to plan ahead and have questions

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prepared for when it was appropriate to receive feedback. because of this
internship.

At this end stage of the internship, the primary area for improvement for me was
increasing flexibility to adapt to change, stress, cooperation, and communication in
a new working environment.

My grasp of the workplace needed to be improved, which made the internship

opportunity quite exciting. I probably also obtained expertise and experience that
will help me do the work more quickly and deal with challenging situations. I
experienced significant improvement in both operation and customer service.

RECOMMENDATION
I recommend students to;

 First know the importance of choosing the company where to do their

internship and try to get more skills and competencies when they are
working.

I would like to recommend my university KEU and the accounting department

 To give awareness about summer internship program to concerning

companies. When I was applying for the internship program, many
companies were not willing to accept the application since they were not
familiar to summer internship program.so, the partnership between the
school and organizations should be improved

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  Student funds for industrial attachment should be increased and be given in
time to facilitate students doing their internship efficiently and effectively
for the performance

To sum up, I would like to give valuable recommendation for Ministry of revenue.
These are: -

 To fulfill the necessary safeties for internship students (suffocation of staffs)

 Corporation between MOR and taxpayers should be improved in order to
maximize the performance results of the organization.
 Some bonuses and much help to taxpayers so as they easily understand the
role of paying tax.
 Education department should be created in organizational structure.so that
the taxpayer’s education department contact frequent open debates over the
radio and TV in order to educate all taxpayers.
 To fulfill suitable areas for file storage in the file storage system
 MOR and ERCA website should be updated daily with the current
information so as to equip all stakeholders with the necessary information
 The institution should be willing to give information about the company
except secreted projects in time.
 To fulfill enough instruments to run basic functions of the institution
 To repair on general breakdown state machines and work materials timely
 Taxpayers must be made aware of the need of creating a voluntary taxpaying
culture.
 The company should access appropriate work materials for every work
orders to decrease extravagancy of materials.

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 REFERENCES

 www.Investopedia.com.
 MOR internal magazine (19/03/2011EC)
 Article from Ministry of Revenues 10-year prosperity plan.
 Wikipedia.com
 www.aabe.gov.et

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