UNIVERSITY OF ECONOMICS AND LAW FACULTY OF ACCOUNTING AND AUDITING GRADUATION THESIS Topic: AUDIT EVIDENCE AND PROCEDURES FOR COLLECTING AUDIT EVIDENCE IN THE PERFORMANCE OF FINANCIAL STATEMENTS AT GRANT THORNTON VIETNAM CO., LTD Lecturer: Ms. Tran Thanh Thuy Ngoc Student: Vo Phan Thanh Nha Student ID: K184050686 Class: K18405CA Ho Chi Minh City, May 2022 COMMENTS OF THE LECTURER ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Ho Chi Minh City, May 2022 COMMENTS OF THE REVIEWER ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… TABLE OF CONTENTS OVERVIEW CHAPTER. Object and scope of research. 2 CHAPTER 1: INTRODUCTION ABOUT GRANT THORNTON (VIETNAM) LIMITED .1 General information about Grant Thornton (Vietnam) Limited.2 History and development about Grant Thornton (Vietnam) Limited.3 Organizational structure of Grant Thornton (Vietnam) Limited .4 Horizon methodology and some technological applications at Grant Thornton (Vietnam) Limited in the audit procedures.
7 CHAPTER 2: THEORETICAL BASIS ON AUDIT EVIDENCE AND PROCEDURES FOR COLLECTING AUDIT EVIDENCE .1 Some basis of audit evidence.2 Method of selecting test elements. 14 CHAPTER 3: AUDIT EVIDENCE AND METHODS OF COLLECTING EVIDENCE APPLIED AT THE AUDITING FIRM GRANT THORNTON VIETNAM. Audit evidence and methods of collecting evidence from the perspective of Grant Thornton. Sampling method at Grant Thornton Vietnam .3 Compare VSA 500 and ISA 500.
33 CHAPTER 4: PUTTING EVIDENCE - GATHERING METHODS INTO PRACTICE AT GRANT THORNTON .1 Introduction about ABC company .2 Setting up PM, TE and Deminimus for D company. Procedures for collecting evidence at ABC One Member Company. 37 CHAPTER 5: COMMENTS AND RECOMMENDATIONS ON THE APPLICATION OF EVIDENCE COLLECTION METHODS IN PRACTICE AT GRANT THORNTON AUDIT COMPANY. Remarks on practical evidence collection methods at Grant Thornton Vietnam.
52 LIST OF THE TABLES AND FIGURES Tables: Table 1: Depreciation period of company A's fixed assets 19 Table 2: Bank Deposit 39 Table 3: Illustration for collecting audit evidence for cash 42 Table 4: Illustration for collecting audit evidence for selling expense 47 Figures: Figure 1: Logo Grant Thornton (Vietnam) 3 Figure 2: Organizational structure of Grant Thornton (Vietnam) Limited 6 Figure 3: Organizational structure of Audit and Assurance Internee 7 Figure 4: The types of information to send confirmation letters and where the 27 confirmation is suitable for those types of information Figure 5: Steps in the interview - investigation procedure 29 Figure 6: Cash at the fund 38 Figure 7: Cash at bank 39 Figure 8: Cut off testing 40 Figure 9: Cash investigation 40 Figure 10: Reconcile balance per confirmation and per book 41 Figure 11: Expenses incurred at the company 43 Figure 12: Short-term and long-term prepaid expense 43 Figure 13: Electricity, phone and internet cost 45 Figure 14: Professional service fees 46 Figure 15: Procedure of checking documents 46 1 OVERVIEW CHAPTER 1. Research reason The audit activity in our country has evolved and is fast increasing in order to respond to the requirements of a changing economy based on market mechanisms and international integration. Those interested in the financial condition and how it is reflected in accounting records might have faith in auditing. It may be argued that building this trust is the most important element in the creation and growth of auditing as a separate activity.
Because the relevance of the audit report is based largely on the evidence gathered by the auditor and on which to build a judgment, the audit process is essentially about gathering and assessing audit evidence. Audit sampling is a common way of selecting test items for obtaining evidence during an audit; each organization has its own methods, strategies, benefits, and restrictions in the process of implementation. However, gathering audit evidence in general, and audit sampling in particular, is a cross-cutting task that has an impact on the audit's overall quality and efficacy. The collecting of adequate and relevant audit evidence to allow independent auditors of financial statements to make an accurate evaluation has resulted in high quality and success in auditing practice.
Because of the significance of the issue, the writer has chosen the topic "Methods to collect audit evidence" as my graduation thesis to aid the writer and readers in gaining a thorough grasp of the subject. Research objectives Learn the fundamentals of audit evidence, including principles, requirements, classifications, and audit evidence collection methods. Learn the practical application of methods of collecting audit evidence at the auditing firm Grant Thornton Vietnam. Demonstrating the approach of gathering audit evidence used in several operations during an audit at ABC Company, a Grant Thornton customer.
Comment on the audit evidence collection procedures at the company and make recommendations. Research methodologies Documentation and standards pertaining to audit evidence gathering and sample techniques: Audit Manual Horizon Methodology Voyager application software ISA 500 VSA 500 Practical experience includes actually engaging in an audit of some of the intern's activities and gathering data from work records. To obtain a deeper look at audit evidence, talk to your other staff. In addition, the writer also receives the direct guidance of the lecturer on the questions asked in the course of the thesis research.
Object and scope of research Due to the limited research period, the writer has only been exposed to a few parts of the practice, so the topic cannot cover practically all the tricks that need attention for all the parts. Therefore, the writer only presents to the extent of his knowledge the issues related to the methods of collecting audit evidence on the theory and the application of these methods at Grant Thornton. 3 CHAPTER 1: INTRODUCTION ABOUT GRANT THORNTON (VIETNAM) LIMITED 1.1 General information about Grant Thornton (Vietnam) Limited Figure 1: Logo Grant Thornton (Vietnam) Source: https://www.vn/ The Company’s name was accepted: Grant Thornton (Vietnam) Limited Representative office in Vietnam Type of business: Limited Liability Company with two members or more Email: Grant.com Website: https://www.vn/ Head office of Grant Thornton (Vietnam) Limited Address: 18th floor, Hoa Binh International Tower, 106 Hoang Quoc Viet, Nghia Ward Do, Cau Giay District, Hanoi City. Legal representative: Mr.
Nguyen Chi Trung - General Director Ms. Nguyen Thi Vinh Ha - Deputy General Director Phone: (+84) 4 3850 1686 Tax code: 0101476557 Fax: (+84) 4 3850 1688 Branch office of Grant Thornton (Vietnam) Limited Address: 14th floor, Pearl Plaza Building, 561A Dien Bien Phu, Ward 25, District Binh Thanh, Ho Chi Minh City. Legal representative: Mr. Nguy Quoc Tuan - Deputy General Director Phone: (+84) 8 3910 9100 Tax code: 0101476557-001 4 Fax: (+84) 8 3914 374 1.2 History and development about Grant Thornton (Vietnam) Limited Grant Thornton Vietnam was founded in 1993 as an independent member business of Grant Thornton International.
It started as a joint venture with Concetti. Grant Thornton Vietnam became a 100 percent foreign-invested company in 1997, and a branch was formed in Ho Chi Minh City. Grant Thornton International accepted Grant Thornton Vietnam as a full member in 1998. In 1999, the firm changed its name to Grant Thornton (Vietnam) Limited.
In 2007, Grant Thornton Vietnam was recognized as an independent auditing firm for listed enterprises. Another year has come to an end, and 2014 has been a watershed moment. Grant Thornton Vietnam Ltd and Nexia ACPA Auditing & Consulting Co Ltd ("ACPA") officially merged on July 1, 2014. Services of Grant Thornton (Vietnam) Limited - Audit and Assurance Services: statutory audit, IFRS services, review of financial statements and financial information, reporting accountant, a compilation of financial information, Cross-border audit, US GAAP audit, agreed-upon procedures.
- Tax Services: licensing services, international tax planning, expatriate tax planning, tax advisory, tax compliance services, tax health check, transfer pricing, tax due diligence, customs and international trade, M&A transaction, industrial zones – picking a location for your business, tax audit support. - Advisory Services: business risk services, transaction advisory services, valuation, business consulting services. - Business Process Solutions: accounting services, taxes compliance within outsourcing, secondments/loan staff services, compilation of the financial and non- financial information, accounting systems review and improvement, initial setting-up for accounting and taxes systems, management accounting and analysis. - DigiTech Innovation: technology consulting and solutions, digital advisory.
5 - International Corporate Structuring Services: offshore company establishment service and private trust advisory. Core Values and Culture Grant Thornton (Vietnam) Limited developed six basic principles, known as CLEAR values, in addition to a distinct worldwide culture. - Core values Collaboration: ask for help, give help – we work well together. Leadership: have courage and inspire others – we challenge each other to be the best we can be.
Excellence: find a better way every time – we never get complacent. Agility: think broadly, act quickly – we thrive in change. Respect: listen and understand, be forthright – we create honest relationships. Responsibility: use influence wisely – we own our actions.
- Culture Diversity: diversity allows Grant Thornton (Vietnam) Limited to adapt to the needs of a rapidly changing world. The company never discriminates based on ethnicity, race, religion or belief (or lack thereof), gender, sexual orientation, gender reassignment, pregnancy, maternity, marital status, age, or disability. Growing Together in the community: Growing Together in the community is Grant Thornton's commitment to community engagement, which is based on six guiding principles. It promotes the positive impact that each individual can have by becoming actively involved in their community.
Many inspiring individuals from Grant Thornton work and live in communities around the world that provide innovative, generous, and resourceful services.3 Organizational structure of Grant Thornton (Vietnam) Limited The primary office of Grant Thornton Vietnam is in Hanoi, with a branch in Ho Chi Minh City. The departments perform independent duties and activities while providing close assistance to one another during the operation. Overall, the apparatus is structured compactly, by the Company's management criteria, resulting in a professional and 6 effective working environment: Share Owner: Mr. Branch Director: the person who is responsible for the entire operation of the branches.
The director of the Hanoi branch is Mr. Nguyen Chi Trung, and Mr. Nguyen Quoc Tuan is the deputy director of the branch in Ho Chi Minh City. Departments: audit and assurance, tax advisory, outsourcing, Digitech, and management (including supporting and IT).
Figure 2: Organizational structure of Grant Thornton (Vietnam) Limited 7 Partner/Director Senior Manager Manager Assistant Manager Senior Associate Intern Figure 3: Organizational structure of Audit and Assurance Internee 1.4 Horizon methodology and some technological applications at Grant Thornton (Vietnam) Limited in the audit procedures Horizon methodology A breakthrough method of the company to gain a better understanding of the organization, how it operates, and risks it poses to customers. The method is based on Windows operating system with the basic component being GT Explorer software product and audit care - a tool for recording, evaluating, and checking internal control systems. This technique is managed directly by the Chief Auditor with the participation of auditors at all stages of the audit process. Horizon applies equally to all audit sizes and processes; however, the audit procedures selected and the extent of work performed will differ from client to client.
This method complies with corporate policy and professional standards, including those established by the International Federation of Accountants (IFAC). Technological applications 8 - Voyager: this software allows to perform the entire audit procedures on the computer and connect all the auditors. At the same time, it performs audits according to the characteristics of each type of customer and certain risks. - TBEAM: assists auditors in automatically creating digital balance sheets arising from customer's data, creating a steering chart, making audit adjustments, and creating a unified working paper, connected with Voyager software.