Auditing wages and salary deductions in the audit process of financial statements conducted by van an ha noi valuation and auditing company limited

NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM 6T BACHELOR’S THESIS Major Auditing TOPIC AUDITING WAGES AND SALARY DEDUCTIONS IN THE AUDIT PROCESS OF FINANCIAL STATEMENTS CONDUCTED BY VAN[.]

NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM 6T BACHELOR’S THESIS Major: Auditing TOPIC: AUDITING WAGES AND SALARY DEDUCTIONS IN THE AUDIT PROCESS OF FINANCIAL STATEMENTS CONDUCTED BY VAN AN – HA NOI VALUATION AND AUDITING COMPANY LIMITED Pham Thi Le HANOI, 2019 NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATIONAL PROGRAM BACHELOR’S THESIS TOPIC: AUDIT OF FIXED ASSETS IN FINANCIAL STATEMENT AUDIT PERFORMED BY DELOITTE VIETNAM Student: Bui Tuan Linh : Auditing Class: Audit 57A AEP Student’s ID: 11152392 Supervisor: Ass Prof Dr Phan Trung Kien HANOI, 2019 TABLE OF CONTENTS ACKNOWLEDGEMENTS STATUTORY DECLARATION ABBREVIATIONS LIST OF TABLES AND FIGURES INTRODUCTION CHAPTER THE AUDIT PROCESS OF ACCOUNTS RECEIVABLE IN AUDITING FINANCIAL STATEMENTS 1.1 Overview of accounts receivable .5 1.2 The audit of accounts receivable in auditing financial statements CHAPTER 27 THE AUDIT OF ACCOUNTS RECEIVABLE IN AUDITING ABC COMPANY’S FINANCIAL STATEMENT CONDUCTED BY T.D.K 27 2.1 The auditing program of accounts receivable in the audit of ABC Company’s financial statement conducted by T.D.K .27 2.2 Performing the audit program of accounts receivable 34 2.3 Completing the audit of accounts receivable 41 CHAPTER 42 COMPLETING THE AUDIT OF ACCOUNTS RECEIVABLE 42 IN AUDITING FINANCIAL STATEMENT BY TDK 42 3.1 Comment on the audit of accounts receivable in auditing financial statements of TDK company 42 3.1.1 Advantages 42 3.1.2 Disadvantages 44 3.2 Suggestions to improve the audit of accounts receivable 47 CONCLUSION .53 LIST OF REFERENCES 54 APPENDIX……………………………………………………………………… 55 ACKNOWLEDGEMENTS To accomplish and complete this graduation thesis, I have received the attention, encouragement and support from many sides First, I sincerely thank my parents for always encouraging, caring and creating the best conditions for me to complete the topic I would like to express my deep gratitude to the teachers of the National Economics University who have dedicated my teaching and knowledge to me for the past four years, helping me to complete my graduation thesis and be an executive The page follows me along the way later In particular, I would like to express my deepest gratitude to teacher Phan Trung Kien, who has dedicated me in guiding and improving the topic I would like to express my sincere thanks to Thang Long - TDK Auditing and Valuation Co., Ltd and the brothers and sisters in the Company for creating favorable conditions and enthusiastically helping me during my internship, giving me unforgettable experience I would also like to thank my friends who are always with me, encouraging me to help me improve my thesis Finally, I wish you and your teachers and units health and reap much success in life I sincerely thank you! Hanoi, May, 2019 Student Nguyen Thuy Hong STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Bachelor’s Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper Hanoi, 05/ 05/ 2019 Nguyễn Thúy Hồng ABBREVIATIONS TDK Thang Long auditing and valuation company, limited VAT Value Added Tax VSA Vietnamese Standards on Auditing No Number VND Vietnam dong VACPA Vietnam Association of Certified Public Accountants IAG International Auditing Guideline OM Overall materiality PM Performance materiality LIST OF TABLES AND FIGURES Figure 1.1 Accounting of accounts receivable Detailed inspection procedures normally applied to accounts Table 1.1 receivable Table 2.1 Identify the materiality Table 2.2 Accounts receivable turnover Table 2.3 Analysis of volatility of accounts receivable Table 2.4 Comparison of accounts receivable balance Determining the proportion of subjects who have checked Table 2.5 and certified debts Table 2.6 Checking prepaid customers INTRODUCTION Auditing is an activity that has existed for a long time since the period of approved information by reading it in a public meeting, so the original of the audit term (audit) in Latin as "auditus" means "listen" But it was not until the 18th century that there was a separation between ownership and executive functions of companies, corporations which appeared to be a need to test and oppose the frauds of employees, then audit was established as an indispensable part of the era to meet this need From here, independent auditors began to develop long and fast steps Entering the 20th century, the world economy is going global, especially the financial market, international investors cross national borders, increasing the need to ensure the credibility of the Financial Statements The main and other information, the purpose of auditing changes from detecting mistakes to comments on the truthfulness and reasonableness of financial statements, now the role of independent auditing is more important In order to keep pace with the five great powers, develop and integrate with the world economy, in May 1991, Vietnam Auditing Company (VACO) was established to mark the reestablishment of independent auditing As a consequence, many other Vietnamese auditing companies were established in turn, with the presence of international auditing companies and joint-venture auditing companies Audit companies' customers are also increasing rapidly and expanding into various types So far, the mandatory auditing object has been quite extensive such as foreign-invested enterprises; organizations with credit, banking and development support funds; financial institutions and insurance business enterprises; joint stock companies have prices on the stock market, large-scale state-owned enterprises By the time of December 31, 2018, Vietnam had 141 auditing enterprises granted certificates by the Ministry of Finance, that are eligible for auditing services business including some companies with 100% foreign capital (Big4, Grant Thornton, or HSK), 135 limited liability companies with or more members, 01 company partnerships (CPA Vietnam), 43 auditing enterprises accepted by the State Securities Commission to be qualified to audit for issuing, listing organizations and securities business organizations in 2018 and 39 enterprises audited registration and accepted by the Ministry of Finance to perform audits for other public interest units As of December 31, 2018, out of 3112 auditors’ grantees, 1520 auditors were granted the CCC by the Ministry of Finance The society is growing and the needs of customers are more diversified, the services provided by auditing are also diversified according to the value of the financial statements of enterprises, accounting and financial advice, taxes, accounting services, operational audits, accounting and auditing training activities In which, auditing Financial Statements is the main service Today, the financial statements of an enterprise not only serve the management, the internal objects but also many parties use it Because that odd, those who use Financial Statements need to have confidence in the financial reports that help them have a better view of the financial situation of the business to make economic decisions Therefore, there should be solutions to reduce risks One measure that is considered most effective is that mandatory financial statements must be audited by independent auditors The financial report is a brief, rigorous simulation that reflects the most comprehensive information on the financial situation of a business, including many large and small items: equity, liabilities, and fixed assets, inventory, receivables In which, the accounts receivable from customers is an important item and affects the key indicators on the Financial Statements Therefore, auditing accounts receivable is an important step in the auditing process of financial statements to help auditors complete auditing for financial statements Recognizing the importance of auditing accounts receivable in the auditing process of financial statements, I decided to study the topic "Completing the audit process of accounts receivable in auditing financial statements conducted by Thang Long Auditing and Valuation Company Limited -TDK” The object of the study is the general process of checking accounts receivable in the auditing process of financial statements at Thang Long Auditing and Auditing Company Limited and the process of auditing accounts receivable at ABC Joint stock company implemented by T.D.K The thesis only focuses on studying the status of accounts receivable auditing process in auditing the Financial Statements at Thang Long Auditing and Valuation Company Limited in 2018, specifically:  Range of time : + Data used for research from January 1, 2018 to December 31, 2018 + Research period from January 15, 2019 to May 25, 2019  Range of space: Thang Long Auditing and Valuation Company Limited and ABC company  Range of content: The thesis does not study the entire auditing process of financial statements but only focuses on the process of auditing accounts receivable in the financial statements audit process at the client company Methods of data collection: In order to implement the topic, I have consulted the laws on accounting, auditing, the standard system, the sample audit records, the circular decrees to serve as basis for the establishment as well as practical research at the unit Thereby studying the auditing records of previous years at the company, interviewing the arising problems, directly participating in the audit process at the client companies as a auditors assistant to experience and capture the process of checking accounts receivable; Much used during the internship at T.D.K Company Limited and working at the company's client Methods of processing and analyzing data: comparing, analyzing, comparing and summarizing the collected data to have a more general, specific and comprehensive view of the process of checking and collecting debts real goods at the Company The method is applied during the practice and implementation of the topic In this section, there are main chapters: ... process of checking accounts receivable in the auditing process of financial statements at Thang Long Auditing and Auditing Company Limited and the process of auditing accounts receivable at ABC Joint... 1.2 The audit of accounts receivable in auditing financial statements The auditing process consists of stages: Prepare auditing, perform auditing and finish auditing 1.2.1 Preparing auditing Auditing... space: Thang Long Auditing and Valuation Company Limited and ABC company  Range of content: The thesis does not study the entire auditing process of financial statements but only focuses on the process