UNIVERSITY OF ECONOMICS AND LAW FACULTY OF ACCOUNTING AND AUDITING ________________________ GRADUTE THESIS AUDITING OF SUBSEQUENT EVENTS AT EASTERN AUDITING LIMITED COMPANY ADVISOR :MS. NGUYỄN HOÀNG DIỆU HIỀN STUDENT NAME : NGUYỄN THỊ HUỲNH NHƯ REGISTRATION NUMBER: K174050619 CLASS :405CA HỒ CHÍ MINH CITY ,4/2021 i TABLE OF CONTENT ABBREVIATIONS. iii LIST OF FIGURES. 1 CHAPTER 1 : ORGANISATION’S OVERVIEW .1 The Profile of Eastern auditing limited company .3 Services Provided By the Firm.
6 CHAPTER 2 : PROCEDURE OF AUDIT SUBSEQUENT EVENTS AT EASTERN AUDITING LIMITED COMPANY .1 The Theoretical Framework .2 Perceptions of Subsequent Events .1 EALC's subsequent event audit process .2 Auditing program for subsequent events of EALC .3 Auditing program for subsequent events of EALC for customer XYZ .4 Observation about the audit status of events arising after the end of the accounting period at EALC (30 enterprises) .4 Review and evaluation .2 Survey about 30 enterprises. 44 CHAPTER 3 RECOMMENDATION & CONCLUSION. 48 REFERENCE ii Appendix 1 Auditor's working paper- determine the materiality of the items Appendix 2 Procedures for Cut-off of Bank Deposits Appendix 3 Procedure for dividing the receivable period Appendix 4 Procedures for splitting payables periods Appendix 5. Sub test procedure payable to the seller Appendix 6 Procedures for inventory split period Appendix 7 Auditor's working paper - Evaluate the reliability of inventory results Appendix 8 Auditor's working paper-Check the completeness, classification and presentation of economic operations (XYZ Company) Appendix 9 Auditor's working paper - Inspection of selling operations (XYZ Company) Appendix 10 Auditor's working paper - Check the recognition of the correct period (XYZ Company) Appendix 11 Working paper of the auditor -Check to calculate the export price (XYZ Company) Appendix 12 Presentation of dedicated procedures to check events that arise after the reporting date (Company XYZ) Appendix 13 Table showing company conducting observations Appendix 14 Questions to collect information from EALC staff about auditing of events occurring after the accounting period Appendix 15 List of companies that occurred after the accounting period iii ABBREVIATIONS FS Financial statement EALC Eastern Auditing Limited Company TOC Test of control GL General ledger VAS Vietnam Accounting Standard VSA Vietnam Audit Standards iv LIST OF FIGURES Figure 1.1 Organizational apparatus in the company Figure 1.2 Organizational chart of the audit apparatus Figure 1.3 Eastern Business Services Figure 1.4 Diagram of audit process subsequent events at EALC 1 INTRODUCTION Together with the process of globalization, audit process have too made extraordinary advance and certified its part in keeping up and guaranteeing the health of the economy.Vietnam also quickly caught up with that trend with the introduction of the first auditing firm in May 1991.
The independent audit market in Vietnam has made remarkable progress thanks to the attention of the Ministry of Finance, the growth of the Professional Association and the rapid growth of auditing firms.Therefore, the term "Audit" is no longer unfamiliar to the business and investment world, especially when it is decided that enterprises must audit their financial statements (FSs) to ensure true and fair.The fact that the legal regulations require that financial information before publication must be audited, this clearly shows the role of auditors in the process of economic innovation. In arrange to guarantee that there are no material influencing the faithfullness and relevant of FSs as well as evaluating whether the recording and introduction are reliable with current bookkeeping measures and controls, auditors ought to review the occasions that emerge after the announcing period. On the off chance that there are any occasions that emerge after the bookkeeping date to the reviewing date, the auditor will conduct the work to consider altering or uncovering the disclosing the FSs according to the principles of prepare and disclose the FSs. Usually one of the vital methods for the auditor to dependably express their review opinion.
Thereby, it proves that the audit of occasions after the reporting period date is an amazingly fundamental step within the audit process. The audit process is divided into 4 phases: Planning, test of control ( TOC),substantive test and completion. The stages are equally important, if any stage is skipped, the auditor cannot give a suitable opinion in the audit report, in which the process of completing the auditor to give out final opinion. It is too long and complicated, consisting of many stages, procedures and operations.
After completing the test each minute of individual operation, in addition to the test results, the auditor will conduct some additional tests of a general nature to prepare the audit report and FSs to be set up and summited to 2 intermediate, logical title presentation of the main business documentary situation, including the presentation of economic events related to a possible accounting period.To supply more particular view point related to audit procedure. As well as applying the hypothesis and commonsense application of the methods to alter occasions emerging after the bookkeeping period at the internship unit in both of the over angles. The study through the subject "Auditing of subsequent events at Estern Auditing Limited Company (EALC) " outlines the application of audit procedures for events after the accounting period in hone in each circumstance. OBJECTIVES OF THE STUDY The fundamental objective of the subject is to discover out almost audit procedures for occasions emerging after the bookkeeping period of EALC.
The specific objectives: • To understand audit procedures of subsequent events at EALC • To learn audit procedures of subsequent events at EALC • To implement audit subsequent events for XYZ company • To recommendation on the review and evaluation of audit subsequent event at EALC • Learn about the ability of procedures to detect events, compare the application level at the procedures, then propose solutions to help improve the audit process at EALC SCOPE OF THE STUDY The subject is done at EALC and the information collected and prepared at XYZ company are subsequent events in fiscal year 2020. METHODOLOGY OF THE STUDY 1.Method of data accumlattion 3 According to the specific requirements of the purpose, suitable data collection methods are in place to meet the different needs of research sections. In order to understand the audit procedure through theoretical basis about the events occur after reporting period, reference is made to the appropriate VAS and VSA relating to subsequent events to know about audit procedures subsequent events at EALC. The accumlation method used here is to collect documents, sample procedures, work-related records auditing subsequent events.
At the same time, collecting working papers done by the auditor of EALC in the internship period. And to find out the audit procedures for subsequent events performed by EALC at XYZ company. It is necessary to collect the data and document related to the subsequent events at the XYZ unit. Directly participating in the audit team and audit of the FSs of the XYZ unit for the accounting year ending on December 31, 2020.Interviews, observations and consultation with the auditor's staff at the company and instructors are made for the purpose of giving comments and recommendations about the review and evaluation subsequent events in 30 enterprises.Information processing method Utilizing the auditor's working papers and primary data given by the client to synthesize, analyze the collected information .Then, re-perform audit procedures that the auditor has performed to learn and understand specifically the audit method and process.
LIMITATION OF STUDY The procedures of the subject require auditors to be qualified to judge, as well as fitting proficient skepticism combined with encounter as well as proficient information to perform auditing of subsequent events. In expansion, most of the customer data information within the theme will be mysterious and as it were for illustrative purposes to guarantee confidential. For the reason that only the implementation details are presented in some customer units that the writer participates in.So, the topic is not highly generalized, and it is not possible to research fully and in detail the topic. 4 CHAPTER 1 : ORGANISATION’S OVERVIEW 1.1 The Profile of Eastern auditing limited company EALC was established on August 11, 2005 with an initial charter capital of 8 billion, certified business number 4105000006 by the Department of Planning and Investment on August 11, 2005.
After Then, on October 10, 2009, the company officially named the Eastern Auditing Company Limited. Headquarter is located at 908 Indochina Park Tower, 4 Nguyen Dinh Chieu, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam. The company possesses abundant human resources and most of the employees of the company. All staffs of company have Bachelor degrees in Economics, Law, Accounting and have worked in the fields of accounting, auditing and business management committed to providing the perfect standard in auditing and private services, consulting, financial solutions, risk consulting, tax consulting and related services for private and state-owned clients operating in a variety of sectors, through a global strategy implemented in each market.
However, the company also focuses on training and improving knowledge for employees through short training as well as sending qualified staff to work at offices and auditing companies foreign countries to increase knowledge as well as experience to quickly respond to all market changes as well as the globalization process. EALC operates nationwide and audits all types of enterprises of all economic sectors nationwide. EALC is recognized by Vietnam Association of Certified Public Accountants (VACPA) to be qualified to provide audit services since its establishment and increasingly affirms its position in the domestic market and its brand is known by many businesses.2 Operational Structure EALC currently has over 50 employees trained in many fields. In addition, the company also has collaborators who are foreign experts, knowledgeable in many different fields such as accounting, auditing, law, and tax, .1 Organizational apparatus in the company Source :EALC Company • Board of director: Oversee all activity of the company • Auditing department: Manage by the chief auditor is the reviewer, dependable for making review plans for each particular client, mindful for the review report period.
Beneath the administration of the reviewer the audit assistant that will perform specific audit tasks. • Accounting department: Performing the assignment of recording and preparing emerging exchanges to supply data for administration, archive documenting, client records, record keeping, audit reports of the audited entity. • Counsulting department: consulting manager is the head of the department, the consultant responsible for counseling clients. On the other hand, the counseling division moreover disseminates modern circulars and orders for the complete company • Marketing department: Finding clients, giving , providing information about the services of EALC.
6 Senior auditor Audit team leader Audit Audit assistant assistant Figure 1.2 Organizational chart of the audit apparatus Source :EALC Company The control and management of this department is the chief auditor who is responsible for the construction of each specific client plan, responsible for signing the audit reports. Usually trusted by management to oversee a number of contracts, perform audit oversight, identify necessary audit procedures, and discuss with clients.3 Services Provided By the Firm EALC providing customers with services in many fields such as: Auditing and guaranteed Taxes consultant Accounting services service Consulting and IT Management consulting solutions services Other services Figure 1.3 Eastern Business Services Source :EALC Company 7 Auditing is the key area in EALC's activities. The company is proud to have a team of excellent staff that are selected, carefully screened, regularly trained in expertise, management organization,. through the training programs of the Ministry of Finance, national organizations.
Therefore, the company's experienced staff always fully and promptly grasp the content of Vietnamese accounting standards (VAS), auditing, Vietnamese accounting regime, the current financial, tax and legal regulations and the belief that: the capacity and experience of the employees is the commitment to service quality and reputation with customers.EALC performs audits on almost all fields and all types of business. Specifically, the company conducts the following types of audits: Audited financial statements (FSs); investment capital; basic construction audit; operation audit; review of FSs; verification of financial information on the basis of pre- agreed procedures and other guaranteed services.