UNIVERSITY OF ECONOMICS AND LAW FACULTY OF ACCOUNTING AND AUDITING _______________ THESIS AUDIT PROCEDURES FOR FIXED ASSETS BY PWC VIETNAM AT EHP VIETNAM LIMITED COMPANY LECTURER : Ms. Mai Thi Phuong Thao AUTHOR : Le Minh Tai STUDENT ID : K184050693 CLASS : K18405CA HCMC, MAY/2022 UNIVERSITY OF ECONOMICS AND LAW FACULTY OF ACCOUNTING AND AUDITING _______________ THESIS AUDIT PROCEDURES FOR FIXED ASSETS BY PWC AT EHP VIETNAM LIMITED COMPANY LECTURER : Ms. Mai Thi Phuong Thao AUTHOR : Le Minh Tai STUDENT ID : K184050693 CLASS : K18405CA HCMC, MAY/2022 i COMMENTS OF INSTRUCTORS. ii ACKNOWLEDGEMENTS To accomplish the Graduation thesis on the topic “Audit procedures for Fixed Assets by PwC at ABC Company”, with my own efforts and learning spirit, I received a great deal of support and advice from the lecturers of the Faculty of Accounting - Auditing, especially Ms.
Mai Thi Phuong Thao, who facilitated me throughout the research and topic selection process. Furthermore, PwC Vietnam Company Limited – HCMC Branch has provided me with the chance to work, study, and do research in a professional auditing environment. First and foremost, I would like to extend my deepest gratitude to the Faculty of Accounting - Auditing in particular, and the University of Economics - Law (National University of Ho Chi Minh City) in general, for their resources in the form of knowledge, skills, and practical suggestions. I would also like to express my heartfelt gratitude to the faculty professors of the Faculty of Accounting - Auditing, specifically Ms.
Mai Thi Phuong Thao, the supervisor in charge of the graduation thesis, who already has always accompanied and advised me throughout the process. The success of my report would not have been possible without the support and nurturing of the Board of Directors and team at PwC Vietnam Company Limited for their enthusiastic assistance in gathering legislation and policies, as well as audit documentations, for the purpose of the graduation thesis. Moreover, the professionals' direction and guided practice in the working process allow me to approach the reality of the business with confidence and better comprehend the process of executing the audit of the appointed components. Finally, owing to limits in knowledge, experience, professional skills, and internship duration, the graduation thesis cannot be error-free.
Consequently, I am looking forward to obtaining comments from instructors and auditors in addition to enhancing the topic. I sincerely thank you! HCMC, 06/05//2022. Student iii ABBREVIATION BODs Board of Directors BS Balance sheet CFO Chief Financial Officer CIT Coporate Income Tax CIP Construction in progresss EMEA Middle East and Africa ESG Environmental, Social and Governance FAs Fixed assets FSs Financial statements FY2020 Final year 2020 FY2021 Final year 2021 GL General Ledger HCMC Ho Chi Minh City IAs Intangible fixed assets IBT Income before tax M&A Mergers and Acquisitions NRV Net Realizable Value PAT Profit after tax PBC Provided by clients PBT Profit before tax PIT Personal Income Tax PPE Property, Plant and Equipment Ref. Reference TAs Tangible fixed assets VAS Vietnamese Accounting Standards VND Vietnam Dong UK The United Kingdom USA The United States WPS Working papers iv TABLE OF CONTENTS COMMENTS OF INSTRUCTORS.
iii TABLE OF CONTENTS .iv LIST OF FIGURES. vii LIST OF TABLES. Research scope and limitations. 3 CHAPTER 1: INTRODUCTION ABOUT PWC VIETNAM LIMITED COMPANY.
History of establishment and development of PwC. PwC in Vietnam. 8 CHAPTER 2: GENERAL INFORMATION ABOUT EHP VIETNAM LIMITED COMPANY. Development and achievement of EHP Vietnam.
9 EHP VIETNAM LIMITED COMPANY. 9 Limited Liability Company. Organizational structure of EHP Vietnam Co, Ltd. Organization of accounting work in EHP Vietnam Co, Ltd.
Accounting department structure .13 CHAPTER 3: AUDIT PROCEDURES FOR FIXED ASSETS BY PWC VIETNAM AT EHP VIETNAM CO, LTD. Audit planning stage. Analysing and reviewing of the internal control system. Identifying key audit objectives.
Preparing detailed audit plan for Fixed assets. Material assessment for the fixed asset item. Audit implementation stage. Check the internal control system for the fixed asset item.
Performing audit procedures for Fixed assets. Finishing the audit of FAs .44 CHAPTER 4: COMMENTS AND RECOMMENDATIONS. At the planning stage. At the implementation stage.
At the completement stage. Limitations and recommendations. At the planning stage. At the implementation stage.
At the completion stage .55 vii LIST OF FIGURES Figure 1. Organization chart of PwC Vietnam Co.1: Organizational structure of EHP Vietnam Co, Ltd.2: Accounting department structure of EHP Vietnam Co, Ltd.12 LIST OF TABLES Table 1. Total revenues of PwC by region (US$ millions) .1: Information about PwC Vietnam.1: Information about EHP Vietnam Limited Company .1 - A450 -Understanding the fixed asset .2: Risk assessment matrix .3: Excerpt from the BS arising before the audit of EHP Vietnam Co.4: Objectives of audit of fixed assets performed by PwC .2- A710 - Determination of materiality .3 – D730 = Fixed asset item audit program .4 - C520 - Check Internal Control System .8: Registration table of depreciation of FAs of EHP Vietnam Co.5 - D741 - Analysis of volatility of FAs .6 - D742 - Checking the existence of FAs .7- D743 – Summary of Fixed assets .8 - D744 -Checking the increase and decrease of FAs .9: Check details of depreciation of FAs - D745. Research rationales Auditing activities have evolved over the centuries with the ups and downs of history.
With the evolution of time, auditing has made great strides, developing from a single activity to a combination of many activities, from being limited to a few areas to diverse in many areas. In addition, auditing has become an intense activity, a specialized science and Vietnam's audit is no exception to this trend. Beside that, the emergence of a number of accounting firms and the introduction of the Law on Auditing and 36 Auditing Standards, Vietnam's auditing industry has developed and integrated into the region and the world. Along with the development of the economy, the expansion of production and business activities, increasing competitiveness in the market, gradual integration and rapid adaptation to fluctuations in the national and international economic situation are the most important goals of companies.
Fixed assets is the item that makes up a majority of total assets, and becomes an important and indispensable part to maintain the existence, development and sustainable growth of companies. Although transactions related to fixed assets do not occur much in one accounting period, but have a large value, investment costs, purchase of fixed assets of large value, slow capital turnover, so the examination of this item always occupies an important position for every annual audit. For an auditing firm, performing well in the investment audit means improving the quality and efficiency of the entire audit. For the customer unit, the audit results provide reliable information that will help them identify the inappropriate points in the accounting work, as well as in the management of fixed assets, thereby contributing to the improvement of production and business efficiency.
Being aware of the importance of the Fixed Assets item, the writer chose the topic: "Audit procedures for fixed assets by PwC Vietnam at EHP Vietnam Limited Company” as a research topic for my graduation thesis. Research subjects ● Illustrating the general information about EHP Vietnam Co, Ltd. ● Evaluating the auditing process of fixed assets by PwC Vietnam Co., Ltd for EHP Vietnam Co, Ltd. ● Providing solutions to enhance and complete the audit procedures of fixed assets by PwC Vietnam Co.
for EHP Vietnam Co, Ltd. Research objectives ● Description and observation of the FAs auditing process at PwC Vietnam Co. ● Illustrating fixed assets auditing process at EHP Vietnam Co, Ltd. ● Providing comments and recommendations on the fixed assets auditing process at PwC Vietnam Co.
to improve process quality. Research methods ● Observing the workings of the client's company combined with the audit procedures carried out by the auditors. ● Gathering the required information by interviewing employees at the client's company or by speaking to the auditors on the audit team about related topics. ● Directly participating in the audit at the client's company, reading the client's file and studying the company's audit file.
● Referencing to PwC's documents on the fixed asset assessment process. Research scope and limitations 5. Scope The topic concentrates on examining the FAs auditing cycle by PwC Vietnam and only touches on a few documents related to the EHP's fixed assets, during the FSs audit period ending December 31, 2020. Limitations Due to the limited practice time as well as little time for research and practical work, it is not possible to fully understand the content related to the research topic.
In addition, the document of clients’ information security is very strictly required by PwC Vietnam Co. Therefore, all the data, information, evidence and samples in this thesis are for reference and opinion polling only. This inevitably reduces the reality of the subject. Research structure The structure of this procedure is as follows: Introduction Chapter 1: Introduction about PwC Vietnam Limited Company.
Chapter 2: General information about EHP Vietnam Limited Company. Chapter 3: Audit procedures for fixed assets by PwC Vietnam at EHP Vietnam Co, Ltd. Chapter 4: Comments and Recommendations. 4 CHAPTER 1: INTRODUCTION ABOUT PWC VIETNAM LIMITED COMPANY 1.
History of establishment and development of PwC The company was formed in 1998 through the merger of Coopers & Lybrand and Price Waterhouse under the PricewaterhouseCoopers name. PwC logo Coopers & Lybrand was founded in 1957 by 3 members: Cooper Brothers was founded in London in 1854 by William Cooper; Lybrand, Ross Brothers and Montgomery were founded in the USA and Canada's McDonald, Currie and Co. In 1980, Cooper & Lybrand expanded its expertise with the acquisition of Cork Gully, a leader in bankruptcy. Price Waterhouse was founded in 1874, but it was not until 1890, when trade between England and the USA developed, that it was recognized as a major bookkeeping company and expanded rapidly from there.
In September 2000, the company's trading name was shortened to PwC as a way to re-brand in the market. Achievement In its nearly 20 years of existence, PwC has continuously evolved, merged and collaborated with other large firms to provide high assurance quality, tax and advisory services. In recent days, with offices in 158 countries and more than 236,000 employees, PwC is one of the leading professional services networks in the world. Additionally, PwC helps organizations and individuals create the value they seek by providing quality assurance, tax and advisory services.
There are some successes of PwC: ● As of FY2021, PwC provided services to 84% of Global Fortune 500 companies. ● 90,273 employees joined PwC companies worldwide in 2021. ● For the year ended June 30, 2021, PwC's gross revenues were $45 billion. 5 For the 12 months ended June 30, 2021, PwC businesses had gross revenues of $45 billion worldwide ($43 billion in fiscal 2020), an increase of 2.0% in local currency, which equates to 9% in US dollars.
This was a solid result given the challenges the global economy faced during the year. Across our network, PwC is focused on providing our clients with quality services and products that help them build trust and achieve sustainable results while addressing the challenges and opportunities of a rapidly changing world. Regional growth numbers for the full year of FY21 reflect the ongoing impact of the COVID-19 pandemic and resulting economic slowdown. However, as the year progressed, growth returned in all major regions and countries.
● Sales in Europe, EMEA increased by 2. Sales in the UK increased by 2.0%, in the Middle East by 4.8% and in Turkey sales increased very strongly by 30. Across Africa, our business was particularly impacted by the pandemic, with revenue down 3.6% year-on-year. ● Asia-Pacific sales rose 6.2%, with a strong performance from South Korea, which posted a 12.3% year-over-year sales increase.
After a challenging fiscal year 2020 that saw revenue shrink by 1.