NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM 6T BACHELOR’S THESIS Major: Auditing TOPIC: AUDITING WAGES AND SALARY DEDUCTIONS IN THE AUDIT PROCESS OF FINANCIAL STATEMENTS CONDUCTED BY VAN AN – HA NOI VALUATION AND AUDITING COMPANY LIMITED Pham Thi Le HANOI, 2019 NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM BACHELOR’S THESIS TOPIC: AUDIT OF FIXED ASSETS IN FINANCIAL STATEMENT AUDIT PERFORMED BY DELOITTE VIETNAM Student: Bui Tuan Linh : Auditing Class: Audit 57A AEP Student’s ID: 11152392 Supervisor: Ass. Phan Trung Kien HANOI, 2019 TABLE OF CONTENTS ACKNOWLEDGEMENTS. LIST OF TABLES AND FIGURES.5 THE AUDIT PROCESS OF ACCOUNTS RECEIVABLE.5 IN AUDITING FINANCIAL STATEMENTS. Overview of accounts receivable.
The audit of accounts receivable in auditing financial statements.27 THE AUDIT OF ACCOUNTS RECEIVABLE IN AUDITING ABC COMPANY’S FINANCIAL STATEMENT CONDUCTED BY T. The auditing program of accounts receivable in the audit of ABC Company’s financial statement conducted by T. Performing the audit program of accounts receivable. Completing the audit of accounts receivable.42 COMPLETING THE AUDIT OF ACCOUNTS RECEIVABLE.42 IN AUDITING FINANCIAL STATEMENT BY TDK.1 Comment on the audit of accounts receivable in auditing financial statements of TDK company.2 Suggestions to improve the audit of accounts receivable.53 LIST OF REFERENCES.55 ACKNOWLEDGEMENTS To accomplish and complete this graduation thesis, I have received the attention, encouragement and support from many sides.
First, I sincerely thank my parents for always encouraging, caring and creating the best conditions for me to complete the topic. I would like to express my deep gratitude to the teachers of the National Economics University who have dedicated my teaching and knowledge to me for the past four years, helping me to complete my graduation thesis and be an executive. The page follows me along the way later. In particular, I would like to express my deepest gratitude to teacher Phan Trung Kien, who has dedicated me in guiding and improving the topic.
I would like to express my sincere thanks to Thang Long - TDK Auditing and Valuation Co., Ltd and the brothers and sisters in the Company for creating favorable conditions and enthusiastically helping me during my internship, giving me unforgettable experience. I would also like to thank my friends who are always with me, encouraging me to help me improve my thesis. Finally, I wish you and your teachers and units health and reap much success in life. I sincerely thank you! Hanoi, May, 2019 Student Nguyen Thuy Hong STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Bachelor’s Thesis independently.
I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper. Hanoi, 05/ 05/ 2019 Nguyễn Thúy Hồng ABBREVIATIONS TDK Thang Long auditing and valuation company, limited VAT Value Added Tax VSA Vietnamese Standards on Auditing No. Number VND Vietnam dong VACPA Vietnam Association of Certified Public Accountants IAG International Auditing Guideline OM Overall materiality PM Performance materiality LIST OF TABLES AND FIGURES Figure 1. Accounting of accounts receivable Detailed inspection procedures normally applied to accounts Table 1.
Identify the materiality Table 2. Accounts receivable turnover Table 2. Analysis of volatility of accounts receivable Table 2. Comparison of accounts receivable balance Determining the proportion of subjects who have checked Table 2.
and certified debts. Checking prepaid customers INTRODUCTION Auditing is an activity that has existed for a long time since the period of approved information by reading it in a public meeting, so the original of the audit term (audit) in Latin as "auditus" means "listen". But it was not until the 18th century that there was a separation between ownership and executive functions of companies, corporations. which appeared to be a need to test and oppose the frauds of employees, then audit was established as an indispensable part of the era to meet this need.
From here, independent auditors began to develop long and fast steps. Entering the 20th century, the world economy is going global, especially the financial market, international investors cross national borders, increasing the need to ensure the credibility of the Financial Statements. The main and other information, the purpose of auditing changes from detecting mistakes to comments on the truthfulness and reasonableness of financial statements, now the role of independent auditing is more important. In order to keep pace with the five great powers, develop and integrate with the world economy, in May 1991, Vietnam Auditing Company (VACO) was established to mark the reestablishment of independent auditing.
As a consequence, many other Vietnamese auditing companies were established in turn, with the presence of international auditing companies and joint-venture auditing companies. Audit companies' customers are also increasing rapidly and expanding into various types. So far, the mandatory auditing object has been quite extensive such as foreign-invested enterprises; organizations with credit, banking and development support funds; financial institutions and insurance business enterprises; joint stock companies have prices on the stock market, large-scale state-owned enterprises. By the time of December 31, 2018, Vietnam had 141 auditing enterprises granted certificates by the Ministry of Finance, that are eligible for auditing services business including some companies with 100% foreign capital (Big4, Grant Thornton, or HSK), 135 limited liability companies with 2 or more members, 01 company partnerships (CPA Vietnam), 43 auditing enterprises accepted by the State 1 Securities Commission to be qualified to audit for issuing, listing organizations and securities business organizations in 2018 and 39 enterprises audited registration and accepted by the Ministry of Finance to perform audits for other public interest units.
As of December 31, 2018, out of 3112 auditors’ grantees, 1520 auditors were granted the CCC by the Ministry of Finance. The society is growing and the needs of customers are more diversified, the services provided by auditing are also diversified according to the value of the financial statements of enterprises, accounting and financial advice, taxes, accounting services, operational audits, accounting and auditing training activities. In which, auditing Financial Statements is the main service. Today, the financial statements of an enterprise not only serve the management, the internal objects but also many parties use it.
Because that odd, those who use Financial Statements need to have confidence in the financial reports that help them have a better view of the financial situation of the business to make economic decisions. Therefore, there should be solutions to reduce risks. One measure that is considered most effective is that mandatory financial statements must be audited by independent auditors. The financial report is a brief, rigorous simulation that reflects the most comprehensive information on the financial situation of a business, including many large and small items: equity, liabilities, and fixed assets, inventory, receivables.
In which, the accounts receivable from customers is an important item and affects the key indicators on the Financial Statements. Therefore, auditing accounts receivable is an important step in the auditing process of financial statements to help auditors complete auditing for financial statements. Recognizing the importance of auditing accounts receivable in the auditing process of financial statements, I decided to study the topic "Completing the audit process of accounts receivable in auditing financial statements conducted by Thang Long Auditing and Valuation Company Limited -TDK”. 2 The object of the study is the general process of checking accounts receivable in the auditing process of financial statements at Thang Long Auditing and Auditing Company Limited and the process of auditing accounts receivable at ABC Joint stock company implemented by T.
The thesis only focuses on studying the status of accounts receivable auditing process in auditing the Financial Statements at Thang Long Auditing and Valuation Company Limited in 2018, specifically: Range of time : + Data used for research from January 1, 2018 to December 31, 2018. + Research period from January 15, 2019 to May 25, 2019. Range of space: Thang Long Auditing and Valuation Company Limited and ABC company. Range of content: The thesis does not study the entire auditing process of financial statements but only focuses on the process of auditing accounts receivable in the financial statements audit process at the client company.
Methods of data collection: In order to implement the topic, I have consulted the laws on accounting, auditing, the standard system, the sample audit records, the circular decrees. to serve as basis for the establishment as well as practical research at the unit. Thereby studying the auditing records of previous years at the company, interviewing the arising problems, directly participating in the audit process at the client companies as a auditors assistant to experience and capture the process of checking accounts receivable; Much used during the internship at T.K Company Limited and working at the company's client. Methods of processing and analyzing data: comparing, analyzing, comparing and summarizing the collected data to have a more general, specific and comprehensive view of the process of checking and collecting debts real goods at the Company.
The method is applied during the practice and implementation of the topic. In this section, there are 3 main chapters: 3 Chapter 1: The audit process of accounts receivable in auditing financial statements Chapter 2: The audit of accounts receivable in auditing ABC company’s financial statements conducted by T.K Chapter 3: Completing the audit of accounts receivable in auditing financial statements conducted by T.K 4 CHAPTER 1 THE AUDIT PROCESS OF ACCOUNTS RECEIVABLE IN AUDITING FINANCIAL STATEMENTS 1. Overview of accounts receivable Characteristics This item is a bisexual account, which means there are balances at both debit side and credit side. The item is characterized by an asset, which has some of the following outstanding features: The account receivable is a sensitive asset with frauds such as being appropriated or corrupted by employees.
Accounts receivable is an item that is closely related to business results, so it is the object to use tricks to inflate revenues and profits of the unit. Receivables from customers are presented at net realizable value. However, due to the provision of bad receivables is often based on managers' estimates, it is more likely to be errors and difficult to check. Audit objectives The recorded receivables are real at the time of making the report (Existing).
All accounts receivable from customers must be fully recorded (Full). Debts receivable from customers on the reporting date belong to the unit (Rights and obligations). Accounts receivable from customers must be recorded in the correct amount on the financial statements and appropriate between the details of accounts receivable and the ledger (Accurate record). Provisions for bad debts are reasonably calculated so that the net value of accounts receivable is approximate to the net realizable value (Assessment) The correctness in presenting and announcing the debt must be collection of customers, including proper presentation of accounts receivable, as well as full 5 disclosure of related issues of pledges, mortgages.
(Presentation and announcement) Accounts receivable in accounting 511 131 635 Revenues Discounts 155,156 521, 531, 532 Goods return to committed Sales discount, sales return importer and allowance 711 33311 Income from liquidation of Tax Fixed asset 111, 112 111, 112, 113 Expenditure for committed Customer pays in advance importer 413 331 Differences of rising exchange rate Clearing debt 139, 642 Clearing doubtful debts Figure 1. Accounting of accounts receivable 6 The relationship between accounts receivable and sales-collection cycles The accounts receivable is an important item, which has a wide range of impacts on many financial statements and has a close relationship with the sales- collection cycle. When selling goods, accounts receivable reflects debts from customers, showing the responsibility of each party in the sales operation, and at the same time demonstrating the ability of customers to appropriate capital of the company. When a company sells goods and products by selling method, sales and receivables from customers are recorded simultaneously, specifically: Sales of the volume of products, goods, and investment real estate for sale and services provided are determined to be consumed.