VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HCM UNIVERSITY OF ECONOMICS AND LAW GRADUATION THESIS AUDIT PROCEDURES FOR SALARY AND SALARY DEDUCTIONS BY SOUTHERN AUDITING AND ACCOUNTING FINANCIAL CONSULTING SERVICES COMPANY LIMITED AT ABC COMPANY Instructor: Mr. Bui Anh Thanh Student: Van Cong Danh Student ID: K194050741 Grade: K19405CA Ho Chi Minh City, 2022 – 2023 ACKNOWLEDGEMENTS To complete this graduation thesis, it is thanks to the help and support of the agency, teachers and colleagues who have helped me during my internship. I would like to express my gratitude to all of you for giving your precious time to teach me. First and foremost, I want to express my gratitude to the instructors at the Faculty of Accounting - Auditing at the University of Economics and Law - VNU- HCM who have applied both their expertise and passion.
In particular, I would like to express my gratitude to Mr. Bui Anh Thanh for her enthusiastic guidance and suggestions to complete the graduation thesis in the best way. He helped me recognize things to pay attention to and promote my strengths. At the same time, I would also like to express my deep gratitude to Southern Auditing and Accounting Financial Consulting Services Co.
for creating the best conditions for me to learn and apply what I have learned in practice. Thank you to the members of the company for always enthusiastically teaching and helping me overcome difficulties during my internship. Due to time constraints and lack of expertise, this graduation report contains flaws. I'm eager to have the lecturers' advice and critique so that I can improve my thesis better.
Finally, I would like to wish everyone a lot of health, happiness and success in their work. INTERNSHIP DIARY General information Full name: Van Cong Danh Class: K19405CA Student’s ID: K194050741 Date of birth: 20/07/2001 Instructor: Mr. Bui Anh Thanh Internship Company: Southern Auditing and Accounting Financial Consulting Services Company Limited Address: 29 Vo Thi Sau Street, Da Kao, District 1, Ho Chi Minh City Department/Line: Assurance – Financial Audit Internship position: Intern Internship period: From 19 December 2022 to 31 March 2023 Content of internship diary No. Week Internship content Students’ assessment 1 05/12/2022 – Participated in Southern Attended all training 25/12/2022 Auditing and Accounting sessions.
Understand the Financial Consulting core values and importance Services Company of the auditor's information Limited– HCMC training security. course for assurance Completion level: Good intern. Learn the rules and the use of the working system 2 26/12/2022 – Participated in auditing Get familiar with the 01/01/2023 team, including the operations used in Excel. following sections: Cash, Completion level: Good Receivables, Payables, Equity, Prepaid Expense, Accrual Expense, etc.
Following up with confirmation letters, making reports. 3 02/01/2023– Participate in inventory The inventory count went 08/01/2023 count for an ice cream smoothly because of the company cooperation from the client as well as from the thorough preparation of the auditor. Completion level: Good 4 09/01/2023– Participated in auditing Completion level: Good 18/01/2023 team, including the following sections: Cash, Receivables, Payables, Equity, Prepaid Expense, Accrual Expense, etc. Following up with confirmation letters, making report.
5 19/01/2023- Tet Holiday 29/01/2023 6 30/01/2023 – Participate in the audit Completion: Good 5/02/2023 process for the food company: fixed assets, salary, check document, selling expenses NHẬN XÉT CỦA ĐƠN VỊ THỰC TẬP Họ và tên SV thực tập: Văn Công Danh MSSV: K194050741 Lớp: K19405CA Trường Đại học Kinh Tế -Luật Đã thực tập tại Phòng: Kiểm toán 3 Từ thời gian: ngày 01/12/2022 đến ngày 31/03/2023 Nhận xét chung: ……………….HCM, ngày 10 Tháng 02 Năm 2023 Xác nhận của đơn vị thực tập Ghi chú: Có thể đóng dấu treo ở góc trên bên trái. v PHIẾU ĐÁNH GIÁ KHÓA LUẬN TỐT NGHIỆP vi viii TABLE OF CONTENTS ACKNOWLEDGEMENTS i INTERNSHIP DIARY ii NHẬN XÉT CỦA ĐƠN VỊ THỰC TẬP iv PHIẾU ĐÁNH GIÁ KHÓA LUẬN TỐT NGHIỆP v TABLE OF CONTENTS viii OVERVIEW CHAPTER 1 CHAPTER 1: GENERAL INTRODUTION TO SOUTHERN AUDITING AND ACCOUNTING FINANCIAL CONSULTING SERVICES COMPANY LIMITED 4 1.1 General information about Southern Auditing and Accounting Financial Services Consulting Co.2 History of establishment and development of Southern Auditing and Accounting Financial Consulting Services Co. Income Statement of AASCS 5 1.4 Services offered by AASCS 6 1.5 Organizational structure of AASCS 7 1.6 Internship at AASCS company 9 CHAPTER 2: THE SITUATION OF THE AUDIT PROCESS OF FINANCIAL STATEMENTS SALARY DEDUCTIONS AND SALARY AT SOUTHERN AUDITING AND ACCOUNTING FINANCIAL CONSULTING SERVICES COMPANY LIMITED 13 2.1 Overview of the financial statement audit process at Southern Auditing and Accounting Financial Consulting Services Co.2 Theoretical framework related to the topic 18 2.3 The reality of audit process of salary and salary deductions at Southern Auditing and Accounting Financial Consulting Services Co., Ltd at ABC Company 21 2.1 Customer Overview 21 ix 2.5 Summarizing the audit results of the salary section and salary deductions 40 CHAPTER 3: COMMENTS AND RECOMMENDATIONS 42 3.1 General comments on the process of auditing Financial Statements at Southern Auditing and Accounting Financial Consulting Services Company Limited 42 3.2 Comments on the audit process of salary and salary deductions at Southern Auditing and Accounting Financial Consulting Services Company Limited 43 3.2 Self – assessment of the report and the internship process 49 3. Advantages of the report 49 3.
Comments on the practice process 49 CONCLUSION 51 REFERENCES 52 APPENDIX 53 x LIST OF FIGURES AND TABLES Content Page Table 1: Business situation of AASCS in the period of 2020- 6 2021 Figure 1: Organization structure of AASCS company 5 Table 2: Description of internship at AASCS 10 Figure 2. Audit contract between Southern Auditing and 25 Accounting Financial Consulting Services Co., Ltd and ABC Co. Commitment to independence of Audit team 26 members Figure 2. Compare the data of salary and salary deductions 27 of ABC company in 2022 and 2021 Figure 2.
Determine the materiality of ABC company 29 Figure 2. Audit program of salary section and salary 30 deductions of ABC Company Figure 2. Check the accounting policices of ABC Company 32 xi Figure 2. Employee payroll at ABC company 33 Figure 2.
Payroll ledger of ABC Company 34 Figure 2. Reviewing the distribution of salary and salary 35 deductions into the expenses of ABC Company Figure 2. Reviewing ABC Company's employee payroll 35 Figure 2. Compare Payroll expenses on the books and 36 Payroll of ABC Company Figure 2.
Analysis of expense fluctuations with revenue of 37 company ABC Figure 2. Results of test of details of payroll of some 38 employees of ABC Company Figure 2. Checking the post-year salary payment of ABC 40 company Figure 2. Adjusting entries of salary and salary deductions 42 at ABC Co.
Audit conclusions of salary item and salary 43 deductions of ABC Co., Ltd 1 OVERVIEW CHAPTER 1. The necessity of the report Auditing is one of the important industries for the Vietnamese economy today. In recent years, the demand for auditing, consulting and valuation services of companies inside and outside Vietnam has increased, as well as the need to use financial statements of companies more and more investors, banks. Auditing activities through the audit of financial statements have actively participated in the examination, evaluation, and confirmation of the reliability of economic and financial information, making a significant contribution to the arrangement change of financial information, equitize enterprises and attract foreign investment activities, creating favorable conditions for the economic development of the country.
Therefore, to achieve the purpose of comprehensive audit of financial statements, auditors need to consider and examine their parts separately. In businesses, salary is always an item that plays a very important role, because it is a big expense of the business and it is also a source of motivation to encourage employees to work. On the other hand, the features of each business are different, so each business will have a different salary policy to suit their business. How to have a reasonable salary policy, encourage employees to work and contribute effectively and save maximum costs for the business is always a big question of every business.
Therefore, in any audit of financial statements, salary is always considered a material item. During my internship at Southern Auditing and Accounting Financial Consulting Services Co. I have been exposed to and learned about issues related to cash items and the feature of cash , so I selected topic “Audit procedures for salary and salary deductions by Southern Auditing and Accounting Financial Consulting Services Company Limited at ABC Company” as the subject of graduation report. Subject and the scope of the report Subject of research topic: The audit process to audit the salary item and salary deductions in the audit of financial statements.
Scope of research topic: The scope of the report is the process of auditing salary and salary deductions as a part of the general process of an audit of financial statements by Southern Auditing and Accounting Financial Consulting Services Company Limited. Report method With the experience accumulated through the internship period at the company and the knowledge acquired while in school. I completed the report by using accounting and auditing of techniques and methods so the following research methods: - In terms of the methodology: The report is researched and implemented based on dialectical materialism, historical materialism combined with logical scientific thinking. - In terms of methods and techniques: The report has used a combination of methods such as direct actual survey at the customer entity, comparison, synthesis of results.
Objectives of the thesis: The graduation thesis aims at the following 3 objectives: (1) Systematize the basic theories of the audit process of salary and salary deductions in the audit of financial statements. (2) Clarifying the reality of the audit process of salary and salary deductions at Southern Auditing and Financial Consulting Services Co. to have a clearer and more accurate perception of knowledge theoretical. (3) Identify the advantage and limitations of auditing salary and salary deduction at the company.
Learn from those advantages while also identifying the causes and proposing solutions to overcome the limitations. Structure of the report In addition to the introduction, conclusion and list of references, the main content of the thesis consists of 3 chapters: Chapter 1: General introduction about Southern Auditing and Accounting Financial Consulting Services Co. Chapter 2: The reality of the audit process of the financial statements of the salary account and salary deductions Southern Auditing and Accounting Financial Consulting Services Co. Chapter 3: Comments and recommendations.
4 CHAPTER 1: GENERAL INTRODUTION TO SOUTHERN AUDITING AND ACCOUNTING FINANCIAL CONSULTING SERVICES COMPANY LIMITED 1.1 General information about Southern Auditing and Accounting Financial Services Consulting Co., Ltd Company name: SOUTHERN AUDITING AND ACCOUNTING FINANCIAL CONSULTING SERVICES COMPANY LIMITED Abbreviations of company name: AASCS CO., LTD Tax code: 0305011729 Address: 29 Vo Thi Sau, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam Legal representative: Mr. Ta Quang Tao Type of business: Limited liability company with 2 members Company size: Medium sized business Telephone: 8205944-8205947 Operation day: 30/05/2007 Management agency: Ho Chi Minh Department of Taxation Logo: 1.2 History of establishment and development of Southern Auditing and Accounting Financial Consulting Services Co., Ltd Southern Auditing and Accounting Financial Consulting Services Company Limited (AACSS) was transformed from a state-owned enterprise under the Ministry of Finance. Southern Auditing and Accounting Finance Consulting Services Company (AASC) – Ho Chi Minh City branch, Ho Chi Minh city, is one of two professional auditing organizations first established in 1991 in Vietnam, according to Decision No. 1407/QD-BTC dated April 10, 2007 of the Minister of Finance.
AASCS is a member of the Auditing Organization – International Law MSI Global Alliance with over 250 independent companies in more than 100 countries around the world. In order to obtain service quality that meets the expectations of customers, AASCS always attaches great importance to the qualifications and experience of a team of professional auditors and staff.