0304 salary audit process in financial statements audit in deloitte vietnam audit company 2021

MINISTRY OF EDUCATION AND STATE BANK OF VIETNAM TRAINING HO CHI MINH CITY UNIVERSITY OF BANKING THESIS OUTLINE FACULTY: ACCOUNTING - AUDIT SALARY AUDIT PROCESS IN FINANCIAL STATEMENTS AUDIT IN DELOITTE VIETNAM AUDIT COMPANY Instructor : Ph.D Duong Nguyen Thanh Tam Student : Nguyen Le Duc Anh Student ID : 030805170392 Ho Chi Minh, November 2021 ASSURANCES I assure you that this is my work which has never been published in any document or journal, except for the clearly and appropriately cited content The metrics used in the article are compiled by the team themselves and handled accurately and honestly If there are any issues relating to the truthfulness and accuracy of the study, I accept responsibility and be subject to the judgment of the Council APPRECIATION The graduation thesis course is an important part of the academic performance at the University and also a form of applied management in practice Over time, accessing and understanding the market has more or less helped me improve my knowledge during my year at banking university With the knowledge I was taught by the teachers, and the dedication of the teachers helped me complete the graduation report The time I had access to real work compared to the process I attended was short Although I have tried to learn and study more, due to the limited capacity in terms of practical experience as well as knowledge, this course of thesis will not avoid shortcomings So I look forward to receiving comments from the instructors and the teachers in banking university Surely, it will be a valuable experience that helps me complete my knowledge and is a solid foundation for the career of the latter I would like to sincerely thank all the teachers of banking university and especially, Dr Duong Nguyen Thanh Tam who directly and enthusiastically guided me throughout the time of my rescue and completion of this internship report Thank you for following and accompanying me throughout the research I would also like to acknowledge that the teachers on the Board have spent time listening and commenting on our articles TABLE OF CONTENT APPRECIATION CHAPTER 1: INTRODUCTION 1.1 Regarding the rationale of the thesis: 1.2 Objectives of the thesis 1.3 Study Question 1.4 Subjects and scope of study 1.5 Research methodology CHAPTER 2: THEORETICAL BASIS OF SALARY AUDIT 2.1 Overall about salary 2.1.1 Features of salary in audit 2.1.2 Meaning of salary 2.1.3 Salary category & Salary calculation 2.2 Overall of salary accounting cycle 13 2.2.1 Duties of salary accountant 13 2.2.2 Overview of the salary cycle 14 2.2.3 Salary accounting documents 18 2.3 Regarding Control objectives 22 2.3.1 Common control objectives 22 2.3.2 Detail control objectives 24 2.4 Salary audit process 25 2.4.1 The role and objectives of the salary audit 25 2.4.2 Salary audit process 26 CHAPTER 3: SALARY AUDIT PROCESS IN FINANCIAL STATEMENT AUDIT IN DELOITTE VIETNAM AUDIT COMPANY 34 3.1 Overall about Deloitte Audit Company 34 3.1.1 Company formation and development 34 3.1.2 Operation Orientation 37 3.1.3 Types of services 37 3.1.4 Organizational structure 41 3.2 Salary audit process conducted by Deloitte Vietnam Audit Company 44 3.2.1 Pre-audit plan 44 3.2.2 When the audit process is conducting 3.2.3 After complete the audit 12 3.3 The current status of the salary audit process in the audit of financial statements at ABC company 13 3.3.1 Objectives of salary audit 13 3.3.2 Pre-planning Process 15 3.3.3 Audit planning process 19 3.3.4 Conducting audit 19 3.3.5 Finishing audit 33 3.4 Comments for current status of salary audit process of Deloitte Vietnam Audit Company 34 3.4.1 Advantages in practice 34 3.4.2 Disadvantages in audit process in Deloitte Vietnam Limited Company.37 CHAPTER 4: SOLUTIONS TO IMPROVE THE PROCESS ON THE CURRENT STATUS OF THE SALARY AUDIT PROCESS IN THE AUDIT OF FINANCIAL STATEMENTS PERFORMED BY THE COMPANY 38 4.1 Solution for the process on the current status of the salary audit process in the audit of financial statements performed by the company 38 4.1.1 Solution to leverage the advantage 38 4.1.2 Solution to limit drawbacks 40 4.2 Recommendation to improve the salary audit process in the audit of financial statements performed by Deloitte Vietnam 42 4.2.1 Assign work and responsibilities 42 4.2.2 Recruitment & training 43 CONSLUSION 44 REFERENCE 45 APPENDIX 46 APPENDIX II 50 CHAPTER 1: INTRODUCTION 1.1 Regarding the rationale of the thesis: Along with the strong development of Vietnam's economy is the increasing competition among businesses However, in the future, when domestic enterprises have to compete not only with each other but also with foreign enterprises, especially after Vietnam signed a series of trade agreements Many difficult articles of businesses when they want to survive and develop in the market To this, administrators must build their brand and reputation with customers, investors and other stakeholders through the transparency of financial information The audit industry was born to help businesses achieve that goal In the current period, the audit industry is increasingly asserting its important role in improving management efficiency, helping the information system in the financial market to be honest and transparent, and making the environment healthier for enterprises in particular and Vietnam's financial system in general Through the financial statements, we can know the financial health information of the business The information that is traded around is quite diverse and complex Among them, salary play an important role in influencing the information presented on the financial statements Therefore, this is an important part that auditors always focus on in the audit of financial statements In businesses, salary make up a large part of the total costs of the business Moreover, the inaccuracy in salary costs can greatly affect the cost of products, thereby affecting the information presented in the financial statements of enterprises which were not honest and reasonable, affecting the economic decision-making by users of the financial statements Realizing the meaning and importance of salary audit through my internship at Deloitte Vietnam, I decided to choose the topic: “Salary audit process in financial statements audit in Deloitte Vietnam audit company” 1.2 Objectives of the thesis Objectives of the thesis include: • Find out about salary audit process in XYZ company conducted by Deloitte Vietnam audit company • Recommend solutions to improve the salary audit process in Deloitte Vietnam audit company 1.3 Study Question • How salary audit is conducted by Deloitte Vietnam audit company? • What are the solutions to improve current audit process in Deloitte Vietnam audit company? 1.4 Subjects and scope of study The subjects and scope of study includes these: • The subject of study is studying the salary audit process in audit the financial statements conducted by Deloitte Vietnam audit company • The study was carried out according to the salary cycle audit process and account citation during the audit of the XYZ company's financial statements performed by Deloitte Vietnam • Audit performance data at company XYZ for the financial year ended December 31, 2020 The figures and examples are for illustrative purposes only and are based on hypothetical data to ensure the confidentiality of information for clients • Total time for studying this case is months in 2021 1.5 Research methodology • To successfully complete this thesis, I use interview method when I was working at the company to understand and have a realistic view of the research topic Based on Deloitte Vietnam's salary audit process, I will describe the salary audit process applied in practice along with data to illustrate each method or procedure specifically mentioned Accordingly, the writer conducts research and analysis to make a small contribution to improve the process • Studying audit records, observing, learning experiences and working methods of senior auditors Collect audit evidence, audit methods, presentations on working papers Proceed to collect data of research subjects and observe the implementation process, interview company employees to better understand the collected data CHAPTER 2: THEORETICAL BASIS OF SALARY AUDIT 2.1 Overall about salary 2.1.1 Features of salary in audit Salary is the payment or monetary income that the employer must pay to the employee through contractual agreements in accordance with the law by purchasing labor power Salary includes salary according to job or title, salary allowance and other supplements 2.1.2 Meaning of salary Salary are the monetary expression of the price of labor power, so salary are an economic category associated with labor, money, and commodity production On the other hand, in terms of the existence of the production of goods and money, salary are an element of production and business costs that constitute the cost of products, services and services In addition, salary are also an important economic lever to improve production and business efficiency, increase labor productivity, and have the effect of encouraging the spirit of enthusiasm, stimulating and creating interest of employees on their work results In other words, salary are a factor that promotes labor productivity 2.1.3 Salary category & Salary calculation 2.1.3.1 Forms of salary category: Paying depend on time: It is the payment of salary according to the working time of employees Time can be in hours, days, weeks, months In fact, businesses have two most basic salary calculation methods: Method 1: Monthly salary = Salary + allowances (if any)/standard working day X Number of actual working days ... meaning and importance of salary audit through my internship at Deloitte Vietnam, I decided to choose the topic: ? ?Salary audit process in financial statements audit in Deloitte Vietnam audit company? ??... include: • Find out about salary audit process in XYZ company conducted by Deloitte Vietnam audit company • Recommend solutions to improve the salary audit process in Deloitte Vietnam audit company. .. salary audit process in the audit of financial statements at ABC company 13 3.3.1 Objectives of salary audit 13 3.3.2 Pre-planning Process 15 3.3.3 Audit planning process