i UNIVERSITY OF ECONOMIC AND LAWS FACULTY OF ACCOUNTING AND AUDITING GRADUATION THESIS SALARY AUDIT PROCESS AND SALARY DEDUCTIONS IN THE AUDIT OF FINANCIAL STATEMENTS PERFORMED BY KPMG VIETNAM CO., LTD ADVISOR : MlntA. BUI ANH THANH STUDENT NAME : NGUYEN THI KIM UYEN STUDENT ID : K184050701 CLASS :K18405CA HCM,5/2022 ii ACKNOWLEDGMENT The application of knowledge learned into practice is always the top concern of students, especially students who are to graduate, because if they still cannot apply theory to practice, students will find it difficult to adapt to work. Therefore, the internship period is a good opportunity for students to interact, gain experience, and learn to apply their expertise. I would like to thank the support from the University of Economics and Law (National University of Ho Chi Minh City) in general and the Faculty of Accounting and Auditing in particular for providing me with knowledge and skills as well as imparting useful practical experience during the university lecture period.
In order to complete the graduation thesis, I have received enthusiastic help from teachers, especially Master Bui Anh Thanh, who is always dedicated to accompanying and guiding me throughout the process of doing the thesis. At the same time, I would like to thank the Board of Directors as well as the brothers and sisters in KPMG Vietnam Co. for creating conditions for me to have a valuable internship period and accumulate a lot of experience. In addition, the guidance and direct instruction in the working process from the brothers and sisters help me easily approach the reality of the business and better understand the process of performing the audit of the assigned parts.
However, due to the limitation of professional knowledge, practical experience and relatively short internship period, errors cannot be avoided in the internship thematic report. Therefore, I look forward to receiving comments from teachers and auditors to improve the topic. Thank you very much! Hồ Chí Minh, May 9, 2022 Student implementation Nguyễn Thị Kim Uyên iii INSTRUCTOR’S COMMENT. Ho Chi Minh, 5/2022 iv NHẬN XÉT CỦA ĐƠN VỊ THỰC TẬP Họ và tên SV thực tập: Nguyễn Thị Kim Uyên MSSV: K174050701 Lớp: K18405CA Trường Đại học Kinh tế - Luật Đã thực tập tại Phòng: Audit Financial Service Từ thời gian: từ ngày 01/12/2020 đến ngày 28/02/2022 Nhận xét chung: .năm 2022 Xác nhận của đơn vị thực tập (Ký và ghi rõ họ tên) v vi vii viii TABLE OF CONTENT LIST OF TABLE AND FIGURE.
xii THE OPENING CHAPTER. Reasons for choosing this topic. Subject and scope of the research. 3 CHAPTER 1: GENERAL INTRODUCTION ABOUT KPMG VIETNAM CO.
The process of formation and development. KPMG Viet Nam. Type and company scale. Type of company .Main markets and customers.
The management structure of the company. Mission, vision, and core values. THEORETICAL BASIS OF THE SALARY AUDIT PROCESS AND SALARY ADVANCES IN THE AUDIT OF FINANCIAL STATEMENTS .1 General issues about salary and salary extracts.2 Meaning and role of salary and salary deductions .4 Types of salary payment and calculation: .5 Salary fund and salary deductions: .2 Overview of salary accounting and salary deductions .1 Duties of the accountant of salary and deductions according to salary.2 Overview of the salary cycle and salary deductions .3 Bookkeeping system for salary accounting and salary deductions .3 Internal control system of the wage cycle.2 General control procedures.3 Specific control procedures .4 Audit the wage cycle and salary pieces of pieces of pieces of advices in audit of financial statements.1 Roles and objectives of payroll and deductions audits.2 Process of auditing the salary cycle and payroll deductions. 35 CHAPTER 3: ILLUSTRATION OF THE AUDIT PROCESS OF SALARY AND x SALARY ACCURACY IN AUDIT OF FINANCIAL STATEMENTS AT COMPANY XYZ BY KPMG VIETNAM COMPANY LIMITED.1 Auditing process of financial statements performed by KPMG Vietnam Co.
Audit support tools. Financial statements audit process BCTC. Actual status of the audit process of salary and salary deductions in the audit of financial statements performed by KPMG VietNam Co. Objectives of auditing the salary cycle and salary deductions53 3.
Pre-planning phase. Audit planning stage. End of audit .1 Consideration of events after the balance sheet date. Reviewing the auditor's working paper .Prepare audit report.
69 CHAPTER 4: COMMENTS AND RECOMMENDATIONS ON THE PROCESS OF THE CYCLE AUDIT PROCESS AND WAGE DEDUCTIONS IN FINANCIAL STATEMENTS ISSUED BY KPMG LTD. Comments on the current state of the wage cycle audit and the amounts deducted from salaries in the company ltd financial reports.2 Solutions to complete the salary audit process and wage deductions. 80 xii LIST OF TABLE AND FIGURE Figure Figure 1.1: Organizational and management structure at KPMG Vietnam Figure 1.2: Management level in the audit department Figure 2.1: Salary cycle diagram and salary deductions workers.1: Audit planning process.1:Description of the entire audit process at KPMG Vietnam Table Table 2.1: Salary cycle audit objectives and salary deductions Table 2.2: Procedures for analyzing wages and salary deductions Table 3.1 : Variable analysis of payable to employees Table 3.2: Analysis of salary fluctuations of each department over the years of ABC company.3: Changes in salary costs of each department over the year Table 3.4: Analysis of changes in salary deductions over the months of ABC company.5 : Changes in salary expenses and salary deductions over the months of Company ABC Table 3.6: Summary of monthly salary of domestic employees Table 3.7: Salary of employees in Vietnam over 12 months Table 3.8: Summary table of foreign employees' salaries over the quarters Table 3.9: Check payment local staff for take home salary Table 3.10: Spreadsheet of deductions according to the salary of foreign expat xiii Table 3.11: Check payment expat for take home salary 1 THE OPENING CHAPTER 1. Reasons for choosing this topic Today, with the increasingly strong development of the world economy in general and Vietnam in particular, the competition is increasing between domestic and foreign enterprises.
Moreover, in the future, domestic enterprises will not only have to compete with each other but also compete more and more fiercely with foreign enterprises, especially after Vietnam joins the Free Trade Agreements such as FTA, RCEP. This is also a difficult problem for businesses when they want to survive and develop in the marketplace. To do this, businesses must build their brand and reputation with customers, investors and other stakeholders through the transparency of financial information. Therefore, the audit service was born to help businesses achieve that goal.
In the current period, the audit industry is increasingly asserting its important role, contributing to improving the efficiency of management, helping the information system in the financial market to be honest and transparent and making the business environment healthy for enterprises in particular and Vietnam's financial sector in general. Auditing contributes to consolidating accounting rules, making financial relationships healthy, and improving management capacity and efficiency. On each aspect, the aspect of auditing activities has certain characteristics and meanings. Moreover, the financial statements are the place to reflect the financial information of the business.
The information on financial statements is often quite complex and diverse, but the information on the reports mainly revolves around the accounting cycles. One of the issues that are focused in the audit of financial statements is the audit of costs, in which labor costs account for a large proportion that affects other information on the financial statements such as revenue, corporate income tax, etc. In particular, the salary cycle and salary deductions play an important role, in affecting the information presented in the financial statements. Therefore, this is an important practice that auditors always focus on in the audit of financial statements.
2 Wages are both income and motivation for employees in the process of production and business, serving life needs, and at the same time, it is also one of the costs constituting the cost of products; services and is an important lever to improve production and business efficiency of enterprises. In businesses, payroll costs make up a large part of the total costs of the business. Many businesses often have violations of regulations on wages and deductions. In addition, an entity's wages may be wasted through ineffective management or embezzlement due to various forms of fraud.
Therefore, the inaccuracy in salary costs can greatly affect the cost of products, thereby affecting the performance of the enterprise, and at the same time leading to the information presented on the financial statements of the enterprise is not truthful and reasonable, affecting the economic decision- making of the user of the information on the financial statements. Realizing the meaning and importance of the payroll and salary deductions through the internship process at KPMG Vietnam Co., I decided to choose the topic: “ Salary audit process and salary deductions in the audit of financial statements performed by KPMG Vietnam Co., Ltd” for research and development for my thesis. Research objectives Find out the policies and regulations on the audit of the payroll and salary deductions performed by KPMG Vietnam Co. Find out the current status of the audit process of the payroll and salary deductions at XYZ Co.
Comments and evaluation of the audit process of payroll and salary deductions performed by KPMG Vietnam Co. Provide solutions to improve the audit process of the payroll and salary deductions. Subject and scope of the research Focus on the status of the process of auditing the payroll and salary deductions in the audit of financial statements of XYZ Co. performed by KPMG Vietnam Co., Ltd to come up with corrective solutions to complete the audit process.
Audited data at XYZ Company Limited for the fiscal year ending December 31, 2021. Moreover, the issue of customer information security is highly and rigorously requested by KPMG Vietnam Co. Therefore, the data, information, evidence, and samples of documents in this report are for reference only. As such, the practicality of the subject is reduced as inevitable.
Research method Interview the auditors at the company to understand and have a more realistic view of the research topic. Based on the salary audit process of KPMG Vietnam Co. has learned, the writer will describe the salary audit process and salary deductions applied in practice along with data to illustrate the results. Each method or procedure is specifically mentioned.
Accordingly, the writer conducts research and analysis to make a small contribution to making the process more complete. Studying audit records, observing; learn experience and working methods of fellow auditors and assistant auditors at the company such as collecting audit evidence, analytical methods, and presentations on working papers. Conduct data collection of research subjects and observe the implementation process; Interview the auditors to better understand the collected data. Theme layout: In addition to the introductory chapter, the course includes 5 main chapters as follows: Chapter 1: General introduction about KPMG Vietnam Co., Ltd 4 Chapter 2: Theoretical basis of the salary audit process and salary advances in audit of financial statements Chapter 3:Audit of payroll and salary deductions in the audit of financial statements at KPMG Vietnam Co.Comments and solutions to improve the audit process of the payroll and employees in the audit of financial statements performed by KPMG Co.
5 CHAPTER 1: GENERAL INTRODUCTION ABOUT KPMG VIETNAM CO. The process of formation and development Company name: KPMG International Short name: KPMG Limited Company (KPMG Co. Ltd) Logos: Head office: Burgemeester Rijnderslaan 20 - 1185 MC Amstelveen – The Netherlands. Slogan: Cutting through complexity Email: http://www.
Global KPMG KPMG is one of the world's largest professional services providers and one of the Big Four in the audit industry, along with PricewaterhouseCoopers (PwC), Ernst & Young (E&Y), and Deloitte Touche Tohmatsu (Deloitte). The company's headquarters are located in Amstelveen, Netherlands. Meanwhile, in 1917 Piet Klynveld opened an accounting firm in Amsterdam. Later merged with Kraayenhof to form Klynveld Kraayenhof & Co.
In 1979 Klynveld Kraayenhof & Co.