PRACTICAL TRAINING LOG BOOK

Trainee Name:

Tertiary Institution:

Year of study:

Student No:

Postal Address:

Date of registration:

Training Officer:

Mentor:

ATC No:

Read the important information inside this logbook.

 SUPPLEMENT TO THE LOGBOOK

INTRODUCTION

The objective of the “Supplement to the logbook” is to provide explanatory information regarding the
IAC Practical Training Programme.

Requirements for IAC membership include the completion of the Academic and Practical component:

ACADEMIC REQUIREMENTS

A person must have completed an IAC diploma in Accounting, Cost and Management Accounting and
Company Secretaries.

OR

A person who have completed an Accounting qualification with a minimum SAQA rated NQF Level 6
(pre 2009) and NQF Level 7 (post 2009).

The qualification must contain the following core subjects:

 Financial Accounting 3.
 Taxation
 Company Law
 Auditing 1 or Internal Auditing 2.

The subject names will differ depending on the Professional Institution.

The remainder of this document explains the practical requirements in detail.

PRACTICAL REQUIREMENTS

 The training period must be supervised by an Accounting Officer (a member of IAC, SAIPA,
SAICA).
 The duration is a minimum of 3 years.
 80% of the sections listed in the logbook must be completed to the Supervisory level (explained in
detail later).

GENERAL GUIDELINES

1. Constitution: Trainees are advised to read the Institute’s Constitution and By-Laws.

2. The Professional Rules and Code of Conduct of IAC is also fully binding on students.

3. Requirements for IAC membership is dependent on the completion of both the Academic and
practical component and an entry evaluation.

4. Self-assessment: The student should use the logbook on a regular basis to assess any shortfalls
(sections that need attention).
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5. Joint assessment: It is advisable for the student and the supervisor to meet
Periodically to discuss the programme in the logbook jointly. This will ensure that
they are both aware of the sections that need attention.

6. Monitoring visit: A monitoring visit has to take place at least once in the 3 years.

7. Change of employment

 If a student changes employment during the course of the 3-year training period, the
logbook should be updated and the “Employer’s Authentication” section completed before
leaving.
 As far as possible, the student must arrange a monitoring visit before the change of
employer takes place.
 The student and the new supervisor/employer would need to complete a Registration
Update Form to notify the IAC of the change in details.

PURPOSE OF THE LOGBOOK:

ON TARGET

 The training logbook assists in keeping the training programme on target. It clearly outlines the
training requirements and thus streamlines the functioning of the training programme.
 If necessary, the logbook can be customised to suit the particular needs of the organisation while still
ensuring that accounting standards are met.

JOB DESCRIPTION

 It presents itself as a detailed and precise job description that could also be used for the induction of
new trainees/employees.
 In fact, it would assist with the facilitation of any staff changes e.g. rotation, staff on leave.

COMPETENCY

 The levels of competency ensure that the focus of the training is on competency, that is, that the
trainees can perform the work and add value to the work environment.
 These levels are assessed, evaluated and recorded in the logbook during the monitoring visits.

REGULAR REVISION

 There is regular revision of the content and structure of the logbook to ensure that it remains relevant
with regards to the changing needs of the profession (including updates in accounting policies and
procedures) and any structural changes that may take place in an organisation.
 Together with the monitoring visits, it ensures that there is regular revision of and on the spot
progress assessments of the training programme.

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STRUCTURED FORMAT

 Due to the structured format, the logbook itself serves as an on-the-spot and up-to-date progress
report for the trainee and supervisor/mentor.
 It therefore assists with the student’s rotation schedule and ensures overall exposure to functions.

MONITORING

The unique feature of the IAC Training Programme is that an IAC Training Officer and the student’s
supervisor in conjunction with the logbook personally monitor students at their place of work.

WHAT DOES “MONITORING” MEAN?

A monitoring visit entails the practical assessment of the progress of the student. The logbook is
completed during a monitoring visit with the student, supervisor and the IAC Training Officer present.
The student’s practical experience is assessed on three levels of competence:

Assist : the trainee will be involved in work that requires initial instruction and
ongoing supervision.

Perform : the trainee will be involved in work operating with a degree of

independence but after initial instruction will still be subjected to
supervision.

Supervision : the opportunity to supervise staff may not always be possible due to the
employment structure or circumstances in an organisation. A trainee is
therefore deemed to have reached the level if adjudged to be competent,
and would be able to do so if the opportunity was to present itself.

These competency levels are determined in a combination of ways:

 Firstly, based on the practical answers of the student

 Secondly, according to the supervisor’s observations and perusal of the trainee’s work on a day-to-
day basis.
 Thirdly, work products (examples prepared) of the student are also evaluated and examined.

The monitoring visit and the completed logbook serve as an on-the-spot report of the student’s progress.
It immediately indicates the areas of work that need more attention. Some organisations also use the
monitoring visit and the logbook as part of the performance appraisal process.

MAKING AN APPOINTMENT

1. It is the student’s responsibility to arrange the monitoring visits.

2. Please allow at least 6 weeks for an appointment.
3. At least one monitoring visit in the 3 years should be arranged.
4. It is advisable to check with your supervisor when an appointment would be convenient because
the supervisor must be present during the monitoring visits.
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HOW SHOULD THE STUDENT PREPARE FOR A MONITORING VISIT?

The student should:

1. Read this document and be familiar with policies and procedures with regard to the practical
training programme.
2. Read textbooks, technical guidelines, recent changes in Acts/Laws etc. to keep up to date with the
theoretical aspects.
3. Discuss the progress in the logbook with his/her supervisor before the monitoring visits
4. Ensure that the supervisor will be available for the monitoring visit. It may be necessary to remind
the supervisor the day before the appointment.

FINAL ASSESSMENT

1. In order to complete the practical training component, the student must have a final
assessment/monitoring visit.
2. The student must present actual work products, case studies and/or simulations during this visit.
3. These actual work products, case studies and/or simulations will be evaluated and assessed
through discussion, explanation and questioning related to all the sections in this logbook.
4. On completion of the 80% requirement, the supervisor and a representative from the IAC will
ratify and sign-off the practical training component by completing the relevant sections of the
logbook.

HOW SHOULD THE STUDENT COMPILE A SET OF WORK SAMPLES?

This is not prescriptive. The student may present work samples in any format. The following are merely
some options:

1. Actual files of various clients (this normally provides samples of all the logbook sections).
2. A composite file with samples as related to the logbook (section for auditing, for taxation, (etc)
3. Case studies/simulated exercised/projects (particularly for sections not covered in the workplace
e.g. budgets).
4. A combination of the above.

CONFIDENTIALITY

1. The assessment of work products is for the purposes of assessing the practical experience of the
student only. The assessment is conducted in the presence of the supervisor.
2. All information communicated will be treated with the utmost confidentiality. Such information
will not be divulged outside of the monitoring visit ambit.
3. If the aspect of confidentiality is of concern, the real names of clients may be omitted from the
work products.

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ACCOUNTING PRACTICE LOGBOOK

EXAMPLES OF TYPICAL WORK PRODUCTS

Please note: This list is not all-inclusive. Students may add work products as is necessary for the final
assessment.

 Working papers
 Financial statements on different entities
 Presentation on computerised accounting e.g. trial balances
 Disclosure
 Interim statements
 Illustration of topics under auditing, e.g. systems documentation, analytical review
 Lead schedules
 All the taxation forms, reconciliations
 Calculations for taxation
 CK forms, letters used for clients
 Association agreements, engagement letter
 Accounting records of CC’s/other entities
 Appointment letters/procedures for other entities
 Cash flow forecasts, budgets, actual and variance
 Calculation for capital, finance leases
 Costing calculations (if not possible for actual client – case study)
 Business plan of the practice, organ grams (can be completed as a project)
 Time sheets and link to fee calculation (also as a project if seen as confidential)

BRIEF EXPLANATION OF EACH SECTION OF THE LOGBOOK

The logbook outlines details on the type of work the student is expected to gain experience in and is thus
self-explanatory.

AUDITING

 The alternative heading for the Auditing section could be Internal Auditing.
 It should not be omitted despite the fact that a particular Accounting practice does not have
statutory audit clients.
 The areas can be correlated with the work that students are involved in with monthly and year-end
clients.

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The following is a summary and will also be discussed during the monitoring visit.

LOGBOOK CORRELATION
PLANNING AND PREPARATION Similar issues are discussed with new
clients
 Permanent Notes  All clients files have a section for
statutory / permanent documents which
differs from working papers
 Engagement Letter  Recommended for all clients
TRANSACTION TESTING AND
VERIFICATION
 Vouching, system based, compliance  Monthly work/year and vouching e.g.
VAT reconciliation
 Control Objective testing  Verification procedures, cross
references, supporting documentation
 Review of Financial Statements  Does not have to be formal/structured
ratio analysis only – discussion on
statements
 Statutory audit checks  Applicable for all clients, particularly
with new clients
REPORTING Not always formally set out in formal
letters but is discussed with client
INTERNAL CONTROL Continuous function particularly with
monthly clients, VAT clients

TAXATION

The logbook outlines details on the type of work the student is expected to gain experience in and is thus
self-explanatory.

CORPORATE LAW

The background of this section is based on theoretical knowledge of the Close Corporations Act and the
Companies Act 71 of 2008 and Regulations (as dealt with in various textbooks and Commercial Law
subjects). The IAC working paper file also provides all the relevant information.
Despite having the theoretical background, it is necessary to apply this in practice. In other words, you
need to be aware of how the various laws, procedures, duties and responsibilities are interpreted and dealt
with in practice.

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MANAGEMENT ACCOUNTING

These sections may not be applicable in terms of the additional services offered to clients. The onus rests
on the student to prepare for this section in the form of a case study/simulated work samples based on the
actual information of clients. For instance, prepare a cash flow forecast, break-even analysis, ratios etc
even if the client has not requested these services (in own time).

PRACTICE MANAGEMENT

In order to maximise exposure in these sections, it is recommended that the student attend all staff
meetings, in-house workshops and client interviews (initial engagement, review of financial statements,
etc.). In view of the confidentiality aspect regarding some of the sections (for instance, fee calculation,
staff appointments etc.) the onus is on the student to prepare case study/simulated work samples based on
the necessary information available in the Accounting Practice.

COMMERCE & INDUSTRY LOGBOOK

EXAMPLES OF TYPICAL WORK PRODUCTS

The accounting policies and procedures are different at the various corporates. In view of this, the
logbook and typical work products will be discussed and explained during the monitoring visits.

Therefore, this list is not all-inclusive. Students may add work products as is necessary for the Final
Assessment.

 Budgets
 Variance Analysis Calculations
 Overhead Cost Schedule
 Fixed Asset Register
 Weekly/monthly/quarterly packs
 Cash Books
 Reconciliations: Bank, Creditors
 Policies and Procedures for the various sections
 Purchasing routines
 Internal Audit file/procedures
 Cost reports/schedules/summaries
 VAT invoices/reconciliations
 Monthly/Annual accounts
 Audit Pack
 Tax Pack

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 1. FINANCIAL ACCOUNTING
ASSISTING PERFORMING SUPERVISING
INIT & DATE INIT & DATE INIT & DATE
Basic Cash Book & bank reconciliation
Accounting Petty Cash, inventory, control
Records accounts
Journals (general, purchases,
sales)
Ledgers (general, accounts
payable, accounts receivable)
Trial Balance
Writing up books from
insufficient records and correction
of errors
Maintaining fixed asset register &
depreciation calculation
Computerised accounting
Financial Sole Proprietor
Statements Partnerships
Companies
Close Corporations
(in Associations not for gain (clubs)
accordance Sectional titles, schools
with IFRS) Trusts, Estates
Consolidations
Deferred Tax
Interim reports
Disclosure Accounting Officer’s reports
Compilation / Review Report
Notes to the financial statements
Notes to the cash flow statements
Formulating accounting policies

2. AUDITING AND REVIEW ENGAGEMENTS (ISRE 2400)

ASSISTING PERFORMING SUPERVISING
INIT & DATE INIT & DATE INIT & DATE
Planning & Permanent notes
Preparation Pre-engagement procedures
Systems documentation
Internal control procedures
Authority & signing powers
Engagement letter (for audit
assignments)
Audit risks and materiality
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Transaction Vouching tests
Testing & System based tests
Verification Solvency & liquidity tests
(going concerns)
Association Agreements
Appointment Letter
Compliance procedures
Analytical review
Control objective testing:
Completeness & existence,
accuracy, valuation, ownership,
presentation
Post balance sheet events
Overall review of financial
statements
Statutory audit checks (share
certificate, memo of
assoc/articles)
Reporting Evaluating systems &
weaknesses
Representation letter
Management letter
Audit report (where authorised
by legislation
Qualification Report
Internal Control objectives (general,
Control specific & computer)
Methods to determine strengths
& weaknesses
Routine auditing & verification
of existence, ownership,
valuation, completeness,
accuracy, presentation, etc
Reliance on specialists / other
professionals

3. TAXATION
ASSISTING PERFORMING SUPERVISING
INIT & INIT & DATE INIT & DATE
DATE
VAT Registration
Maintaining monthly records
Completion of returns
Calculation of penalties and interest
Reconciliations

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 Deregistration
Audit from SARS
Income Tax Registration
 Individuals
 Companies & Close Corporations
Returns
 Yearly returns (IT14)
 Provisional tax (IRP6)
 VAT
Review of assessments
Objection to assessments
Lodge appeal
Arrange payment by instalments
Deferred taxation
Tax Planning
 Fringe benefits & allowances
 Tax avoidance
 Donations tax
 Estate Duty
 Residency Tax
 Dividends tax
 Capital Gains Tax
 Turnover Tax
 Small Business Corporation
Employees Registration (PAYE, UIF, Skills, etc)
Taxation Maintaining monthly records
Completion of returns (EMP 201)
Calculation of penalties & interest
Calculation of PAYE & SITE
Reconciliations (EMP 501)
Issuing of IRP5’s & IT3’s
Deregistration

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 4. COMPANY OR CORPORATE LAW AND COMPANY SECRETARIAL FUNCTIONS

ASSISTING PERFORMING SUPERVISING

INIT & INIT & DATE INIT & DATE
DATE
The CC concept & characteristics and
Close Companies
Corporations Advantages & disadvantages of a CC
vs. Companies e.g., other business
entities
Steps to form a CC and Companies
Completion of all CK forms and COR
Forms
Membership & member’s interest /
Share Holding
Acquisition of member’s interest,
administration procedures + Shares
(Ordinary and Preference)
Conversion from a CC to a Company;
practical steps
Statutory registration and returns
(PAYE, VAT, UIF, WCA, Pension,
Industrial Council, Trade Unions etc.
Internal relationships between members
of a CC (including association of
agreement)
Meeting of members of a CC
Loans by CC to members
Powers of members to bind the CC
External relationships, and fiduciary
position of members
Personal liability of members to CC
and to others
Accounting records to be maintained
by CC and Companies
Non-resident considerations: founding
statement
Accounting The duties of the
Officer accounting officer
Removal, resignation
& vacancy
Rights
Duties towards
Registrar
Engagements Letters

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 Annual FS, IFRS,
reports
Deregistration procedures
Liquidation procedures
Other entities Appointment procedures
(trusts, clubs) Duties
Financial Statements
Report
Taxation
Credit Agreements, insurance contracts, lease
conditions, etc.

5. MANAGEMENT ACCOUNTING
ASSISTING PERFORMING SUPERVISING
INIT & INIT & DATE INIT & DATE
DATE
Reporting Management reports
(Statement of Financial Position /
Statement of Comprehensive Income)
Valuations
Cash Flow
Ratio Analysis
Management of costs & overheads
Budgeting Forecasting
Scenario planning
Controlling
Costing Capital
Finance
Product
Inventory (FIFO etc.)
Cost volume profit analysis
Break even analysis

6. PRACTICE MANAGEMENT
ASSISTING PERFORMING SUPERVISING
INIT & INIT & DATE INIT & DATE
DATE
Planning Location, client base, PI insurance,
business plan
Break even, staff appointments
Implementing Conduct of meetings, resolutions,
assessing clients’ needs
Pre-engagement activities, procedures of
appointments, resignation
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Controlling Conflict resolution, preservation &
maintenance of records
Time records, fee calculation, debt
management

TRAINEE: DATE:

MENTOR:

TRAINING OFFICER:

ASSESSOR:

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