: | | INTERNATIONAL SCHOOL DISSERTATION từ À4 000617 87 LOR %4 TED RIEL RT LD IID BELIEVER III 6 00 ISEIDED STIIDDIISI MU ABR AAAS ALP aD IP SI ap OOD CTIID IIE Ass.Prof Pham Duc Hiew - “4224444 1 1 STUDENT: Khuat Thai Tat BOEE SESE OLED, KEP ERE OREO + STUDENT ED: 11071154 3 quế KEL KOS RECP, SPREE “2e CLASS: IB2011-A OnnRARE PROGR AM: Taternational business Sn nn cee ee ⁄. “a, OW RWWA: v7 |: — | Í ĐẠI HỌC QUỐCGIÁ HÀ NỘI 1112 1166666066 ve ve : 4343649541161 _— KHOA &QUỐC TẾ THỰ VIÊN ` ¢ we Te EOE. Se RE ES A TÔ lá2220652i66945i “ASO SEE On enn NA ’ bh aaa conan’ TU Se AVNOONOAOOONOOOOOSSSCNNGS N2 S2 x2 S2 D2 QUA on 2X xa bi,lang) 0 0: (kaaaaaaae~- Lx NA ns eae bà Xà Sacra Sats pwr RS l)33)22202020000uu and aes sama) 3-30 x++0100:t49040:tá0-k ae ee rare am ` m R : oe TH Declaration of Originality and Compliance of Acadentic ethies [ hereby declare that the dissertation entitled “Research on factors affecting audit quality of financial statements of Hxted companies in Vietnam” contains literature survey and original research work done by the undersigned candidate. The dissertation has never becn published or presented in any other research by other researcher.
During the process of working on ihe disserlalion, [ have followed academic rales and ethical conducts. The research results presented in the dissertation is done by myscif. T also declare thet, as required hy these roles and conduct, | have fully cited and referenced al material and results that are not. original to this work.
| { will be totally responsible for the fransparency and integrity of data and : content presented in the dissertation. pear 2073 Dissertation author Khhuat Thai Tai would ke lo express mey simeere gratitude to the Intemational Schuol- Vicinam = National University for Jetting me fulfill my dream of being a stadent bere. T would also thank Ms. Van and Ms.
Trane for thesis formation sharing and thesis facilitation. To my iricnds and family who help me to survive from all the stress, and provide me the assistance and suggestions when ] needod thom the most. Most ofall, lam fully indebted fo Ass. Pham Due Hiew, ny advisor and instructor, for his understanding, encouragement, valuable gindance and for bis non-stop belief it me.
ị Student Khuat Thai [ai A a ay to SAA ow November 2007 and the Accountancy and Actuaria he accounts to 30 art it dependent investigative and disciplin ary bo dy in Discipline Deard (AA ` Bì. ors oF the UK, commenced an investigation in 2010 into the conduct of the audit Int ern ati ona l Furope. Po ll ow mg the collapse of Lehman Brothers Brothers, other banka failed worldwide and many necded government support t ics i continue. There was a knock on effect in the wider economy in many conntr ny bu si ness-str ug gl in g or fai lin g alt oge ther.
The global 2008 and 2009 woth ma economy has never really recovered from this and 2010 and 201 2012 has seen nations in danger of defaulting on their debis necessitating numerous gs of bo rr owin g ar rang em en ts. And the rol es and re sponsibility of the restructurin auditors and which factors affecting audit quality arc questioned. ing the In light of this global financial crisis, regulators have again been consider effectiveness of the audit and the auditor’s role to prevent, or af least provide warning of, corporate and financial institution collapses in the future. Whether those frauds and crors in financial statements involving the the responsibilities of auditors! auditing firms or not remains questionable.
in organ and Bank of New ¥ ork by ae letiing ” US, K. PMG is facin re trial teialing Tr M con duc ted his sch eme s (An on. {na June 2013, advisory Berard Madotf service. of Deloitte had been penalized.10 million USD and_forced into rd suspension for one year for not fulfill ils independent advisory role with Standa Chartered bank (Aran.
Ya Vietnam, the incident of Bach Tuyet Catton Corporation in 2008 became a d focal point for Vienamesc stack market when disputes arose concerning audite business results in 2005 (audited by A&C) and 2006 (audited by AlSC). This resulted in operation suspension and removal from stock exchanges for S-year of Bach contianal loss. The fraud also caused financial loss to 1400 investors Tuyet Cotton. Vietnam State Securities Commission penalized two auditing LIST OF TABLES, GRAPHS AN’ ) DIAGRAMS Diagram 1.1: Research ĐRAENOEOeereeererrrnrrrrrrrrrrrrerrerenei Diagram 1.
cece cece een eee tee nen er ees es lo e nee Table 1.3: Differences between public com nang íand listed company.--: Table 14: C“fassification ot audit regarding to mm 13 Diapram 1.5: sers of Ñnansial siafeteffS.««veeeeeeeeeeeereeeeerae Đỗ Điagpram Í 6: Audit expectation gap. tees recnrerte regs cases Diagram 1.7: Factors affecting audit quality of financial s statemenis. bene enanencaveenbey Table2 Ei Development of Vietnam `“. di Sy stem.
cuuvpenvunasetunewanesantal Sy Table 2.2: Vietnam's Financial Market Supervision Table2.3: Conditions for companies to be listed Vietnam stock market (Decree No 58/2012/ND-C PL con "— Gr apne 2.4: Top iQ auditing firms with bi pest number of certified auditors § in Graph 22.5: : Top 10 auditing firms with biegest number of stafls Wi 3 2013Ậ. "34 Graph2 6: Top 10 auditing firms with greatest revenue in 20 lÄ.7: Qualified auditing firms in groups based on firm size ina Vi ietnam in 0. ONE Reena _¬ ‘Table 2.8: Conditions for qualifiñ ed auditin fig firms to auudil listed companies according to Decision No §89/2007/Q1- TỔĐ cuc ky re nhe he esỢ Table 2.0: Number of qualified auditing firms from 2008- 2013V LH vn vn nà ngư .37 Table 21 0: Results on annual direct quality contral toward auditing firms.1 {: Selected factors affecting audit quality af Anancial statements of Hsted COMPANIOS.- ese ccs esos "—. ‘fable 3,1: Surnmary on impact level of3 , groups of E:OfOVS.
nd Table or impact level of evaluation criteria of External factors.3: ImpacLlevel of factors relaling to auditors/auditing teaf.4: Impact level of evaluation criteria of factors relating to auditors s/auối LS Sâ led iy ‡# Kš WO# #O MO Rẻ to ân NÓ ROẠN HP ROỲn REE WKK RSS HR RK MGW HK HH HH HR EH WRT SS HK EE HHH KH HY wD eo ESKER EEE Re RH eee HR OTM ¬.5: Ímpaot | tevel of evaluation criteria of factors relating io auditing finns.6: Survey results on impact level of 3 groups of factars affecting andit qualily ©of financial statements of listed companies in Vietnam. cece cll Table 3.7: Survey results on real situations affecting audit quali ty ‘under anditors” ges ¥en tee eeneese cease ne aaaad perspectives. yee aes ` Diagrain 4.1: Groups of solution for improving qudïit quaHlY. ÔÄ a6 TENY CHAPTER 1 THEORETICAL FRAMEWORK FOR RESEARCH ON BACTORS AFFECTING AUDIT QUALITY OF FINANCIAL STATEMENTS.
Stock market and listed companies on the stock markets nce d SSE’ TET RL Ee SRW ee eH EARS x PREG PASC RK RA Gat SRM se Se FRRWBHTE TSA Se SLOG OHHT 8 i. Stock murket: LEEDS EW WEG KT sw’ Sw ws REC MSS vO Se CO eR ERAS TR ER RET ER EE PRE RHE CET RR WE EERO KET TN aT eee ESSE ễ, I, 1. Detinition of stock YYEUT cet: 1. Functions of the siock matk€b.
j a ] và Listed GOIIDAHICS aon stocle market: ERR RE ER Ee Te RN ER EE eS RRR ET RR Se PIKE SS TRA SHE DS RRS wld 11. Definition of Hstad companies.ececmercerc ce ec rcnesenetene stan ene 1. Audit of financial statements of listed companies.441L 2,1, Concept and classification G aHdÏTNG se. Audit quality from viewpoint afab lity to detecttand r report material misstateraents on financial statements .uccccecesceeeeie2 CH APTER 2 2 L PING KS LCVING AUDIT QUAL.
ary OF FINANC IAL st AT EMENTS C F LISTED COMPANIES IN ew ee eREe EE ag DBS ERS | Se ETE BROS FRR A REE A RRR RET PERE EE ERE OE 30 VIETNAM RRR EE BS ER BF stack TAY ket and listed] SNS nies BRAID 2 RR RR ERROR RE ES RES EE EEE EES EE EES 30 +, Vietnam 2. Development oŸ Vietnaa sioCkK pREKEE cu cvueeeeeereereerrerreerreree TỔ 3. Characteristics of listed companies In the Vietnam stock market. Audit of financial reports of listed conrpanies in Vietnant—.
Characteristics of independent auditors qualified to audi lisied companies KAT EE SSRI SERV HK VRS HE VHT TCH VA SWRA WW AW Aw A WwWeweeee wee eww Pde Vw wa ¬ ct2 ee RRS BRERA PERE ED RE WR TAREE EEE RRR RE CRE ES TH 2. The legal framework for independent audit on fnanctal statements of ER RRS TREE RT DH EEK MR ORR EERE ARREST ERR ERP TERRE LT PE HEE OOK HER ARE DD THE RENT Se 44 listed companiss 3. The facts of audit quali ity evaluation of financial reports of Vietnam» listed COIT HT Hư H216 1222xe1.3, Identifying factors affecting audit quality of financ ial statemen ts of listed companies on Vietaam stock market .-rccccisonerscoanerennunvessnne hd RESEARCH RESULTS ON FACTORS AFFECTING AUDIT QUALI 3. Data collection and mềChodologBÐR cu.
ceeeesieieeessieaerseeedeeeoemse “TỔ 3 Ä 4 , Design of GIÿSHØIMHG1P6S veo doc ĐÀ HÀ nhat KER EER RAS MA EOE REE FES SAE EK ARREARS ER RMR EERE T RRR X VN Ệ S3 tu 48 arms and suspende 4 andit certificates of four ack liters in two years (Anon, 2013). Other cases relating to the reliability of information on financial statements such as: GMD, VCG, DVD also created losses to investors and ghareholders, The questions about the audit quality and which factors affecting the audit quality of the financial statements of listed companies have been raised. There are two groups that have significant roles in the audit quality of the audited Gnancial statements: the group of company managers am! financial report preparers; and auditors who are responsible for cosuring the reliability of financial reports, which displays audit quality. Only when corporate managers and auditing firms fully understand and control te factors affecting andit quality do they find the solutions to enhance the audit quality.
Those factors might. from corpurations (audit clients) wha propare aid present financial statemenis or from auditors and auditing firms to detect material frauds and errors or ather factors. However, it is not casy In evaluate or recognize audit quality. Evaluation criteria for audit.
show audit quality but they do. which factors resulting to such quality an d, more importantly, basing on what base can audit qualiry be improved. Therefore, the thesis’s topic, namely: “Research on factors affecting audit quality of financial statements of listed companies iz Vietran”. Research objectives and questions esearch objectives The overall objective is to identify factors affecting audil quality and evaluate the influence of each factor to audit quality of fiuancial statements of listed compar ies in the Vietnamese stock market at present, which serves as the basis for proposing solulions.
The research objectives include: - Identify factors’ eraup of factors associating with measurable criteria Nad _* x om audit quality. - Analyze level of impacis of factors to audit quality wie survey and questionnaire sent to auditors certified to audit Listed coumpanies. Propose solutions for enhancing audit quality on financial statements of listed companies on Vietna n Stock Market based on survey results and personal interview with experts and representatives of stakeholders concerning audit quality. Research questions lu order to acquire all objectives listed above, research questions arc presented accordingly, including: Question 7; Which factors and measurable crtterta are ldcnlied lò cause major influence on audit quality of financial statements of Vietnam listed Question 2: Which factor is considered te attect the most, as well as the level of influence each factors has on audit quality of fmeicial statements of Vietnam listed companies?