Improving the internal control system of the purchase and payment cycle at ngoc vien dong technology joint stock company

- HUE UNIVERSITY HUE COLLEGE OF ECONOMICS mfsaleKHÓA HỌC: 2018 – 2022 Kin ht ếH uế FACULTY OF ACCOUNTING AND FINANCE GRADUATION THESIS ọc IMPROVING THE INTERNAL CONTROL ại h SYSTEM OF THE PURCHASE – PAYMENT CYCLE AT NGOC VIEN DONG TECHNOLOGY Trư ờn gĐ JOINT STOCK COMPANY DUONG ANH MINH CLASS OF 2018 – 2022 - HUE UNIVERSITY HUE COLLEGE OF ECONOMICS Kin ht ếH uế FACULTY OF ACCOUNTING AND FINANCE ọc GRADUATION THESIS ại h IMPROVING THE INTERNAL CONTROL SYSTEM OF THE PURCHASE - PAYMENT CYCLE AT NGOC VIEN DONG TECHNOLOGY Trư ờn gĐ JOINT STOCK COMPANY Student: Duong Anh Minh Supervisor: Master Đào Nguyên Phi Major: Auditing Class: K52 Auditing – High Quality Program HUE, MAY 2022 - ABTRACT Internal controls become increasingly critical after the Enron and WorldCom scandals Furthermore, internal controls are important not just in public organizations but also in private companies since they protect an organization's ếH uế assets, reduce the chances of fraud, and allow errors to go unnoticed in everyday operations In this context, purchase-to-pay is the principal process, which is the procedure through which a company purchases the goods and services it needs to run its business constructively To conduct the thesis, the author implemented ht several method to collect the secondary data from relevant employees and accountants and ultilized some test of control methods includes inspection of Kin documents, inquiries about internal controls and observation of controls to evaluate the internal control system of company From this study, the author hope to build effective risk prevention system as ọc well as suggest more solutions in order to help strengthen and improve the efficiency of internal control activities in purchase and payment cycle at Ngoc Vien ại h Dong Technology Joint Stock Company Specifically, it investigates and evaluates Trư ờn gĐ whether the company lacks control over any stages of the given process - ACKNOWLEDGEMENTS With deep respect and gratitude, first of all, I would like to express my sincere thanks to the teachers of the University of Economics - Hue University, especially the teachers in the Faculty of Accounting and Finance You have given ếH uế me a lot of valuable knowledge over the years, I would like to express my special thanks of gratitude to my instructor Dao Nguyen Phi, who gave me the golden opportunity to this wonderful project on the topic “Improving the internal control system of the purchase - payment cycle at Ngoc Vien Dong Technology Joint Stock Company”, which also helped me in doing a lot of Research and i came ht to know about so many new things Kin Second, I'd like to express my heartfelt gratitude to the uncles and aunts of Hue City Tax Department's Tax Inspection Team No.2 and, in particular, Mr.Nguyen Cong Thien, who directly guided and assisted me, provided support, ọc created favorable conditions, and provided necessary documents during my internship In addition, I also want to express my gratitude to the aunts, uncles, ại h brothers, and sisters who work at Ngoc Vien Dong Technology Joint Stock Company for their continued support and for providing me with opportunities to learn about actual labor gĐ Finally, despite several attempts, mistakes cannot be avoided owing to a lack of knowledge and capacity, as well as a lack of practical experience I look forward thesis Trư ờn to receiving your valuable comments and suggestions to improve my graduation Thank you! - TABLE OF CONTENT ABBREVIATION .i LIST OF TABLES ii LIST OF FLOWCHARTS iii PART I: INTRODUCTION 1 Rationale ếH uế Research objectives PART II: RESEARCH CONTENT ại h ọc Kin ht CHAPTER 1: THEORETICAL BASIS OF INTERNAL CONTROL SYSTEM OF THE PURCHASE AND PAYMENT CYCLE 1.1 Overview of internal control 1.1.1 The concept of internal control 1.1.2 Objectives and role of Internal control 1.1.2.1 Objectives of Internal control 1.1.2.2 Role of Internal Control 10 1.1.3 Components of Internal Control 10 1.1.3.1 Control Environment 13 1.1.3.2 Risk Assessment 15 1.1.3.3 Control Activities 16 1.1.3.4 Information and Communication 18 1.1.3.5 Monitoring 19 1.2 Internal control of the purchase and payment cycle 21 1.2.1 Characteristics of the purchase and payment cycle 21 1.2.2 Possible risks in the purchase and payment cycle 22 1.2.3 The purposes of internal control in the purchase and payment cycle 24 1.2.3.1 The primary purpose of internal controls 24 1.2.3.2 The purposes of internal control in the purchase and payment cycle 24 Trư ờn gĐ CHAPTER 2: THE SITUATION OF INTERNAL CONTROL SYSTEM OF THE PURCHASE AND PAYMENT CYCLE AT NGOC VIEN DONG TECHNOLOGY JOINT STOCK COMPANY 26 2.1 Introduction to Ngoc Vien Dong Technology Joint Stock Company 26 2.1.1 History of formation and development 26 2.1.2 Field Operations and Development Orientation 27 2.1.3 Organizational Structure 29 2.1.4 Accounting department organizational structure 31 2.1.5 The analysis of the company's resources and business performance over the three years 2018 - 2020 36 2.1.5.1 Labor force structure of the company over years from 2018 to 2020 36 2.2 The current situation of purchase-to-pay cycle at Ngoc Vien Dong Technology JSC 48 2.2.1 The current situation of control environment in the purchase-to-pay cycle 48 2.2.1.1 The entity makes a commitment to ensure integrity and ethical values 50 2.2.1.2 Employee capacity and HR policy 50 2.2.1.3 Organizational structure and supervision 50 2.2.1.4 Segregation of Duties 50 2.2.2 The current situation of risk assessment in the purchase-to-pay cycle 51 2.2.3 The current situation of control activities in the purchase-to-pay cycle 52 2.2.3.1 Control procedures 54 - ếH uế 2.2.3.2 Control activities in purchase-to-pay cycle 55 2.2.3.3 Control over source documents 57 2.2.4 The current situation of information and communication in the purchase-to-pay cycle 58 2.2.4.1 Internal information 59 2.2.4.2 External information 59 2.2.5 The current situation of monitoring in the purchase-to-pay cycle 59 2.2.5.1 Regular monitoring 59 2.2.5.2 Periodic monitoring 60 2.2.6 Internal control over each stage of the purchase-to-pay cycle at the company 60 2.2.6.1 Internal control over purchase requisition and purchase approval stage 60 2.2.6.2 Supplier selection stage 62 2.2.6.3 Internal control over ordering stage 63 2.2.6.5 Internal control over the bookkeeping process and keep track of accounts payable stage 67 2.2.6.6 Internal control over the payment process 69 gĐ ại h ọc Kin ht CHAPTER 3: SOME SOLUTIONS CONTRIBUTED TO IMPROVEING THE INTERNAL CONTROL SYSTEM OF PURCHASE AND PAYMENT AT NGOC VIEN DONG TECHNOLOGY JOINT STOCK COMPANY 72 3.1 Evaluation 72 3.1.1 Evaluation of control environment 72 3.1.2 Assessment of risk assesment 72 3.1.3 Evaluation of control activities 73 3.1.3.1 Evaluation of the internal control in the purchasing process 73 3.1.3.2 Evaluation of the internal control in the receiving stage 74 3.1.3.3 Evaluation of the internal control in the process of bookkeeping and keep track of accounts payable 75 3.1.3.4 Evaluation of the internal control in the payment stage 76 3.1.4 Evaluation of information and communication 77 3.1.5 Evaluation of monitoring 77 3.2 Some suggestions to improve the internal control system of the purchase and payment cycle at the company 78 3.2.1 Some suggestions to improve the the internal control system in general 78 3.2.2 Some suggestions to improve the internal control system in each stage of the purchase and payment cycle 80 PART III: CONCLUSION AND RECOMMENDATION 81 Trư ờn Conclusion 81 Recommendation and limitations 82 REFERENCES 84 - ABBREVIATION Abbreviation Meaning Accounts Payable BODs Board of Directors COSO The Committee of Sponsoring Organizations of ếH uế AP the Treadway Commission Head of Department HR Human resources IC Internal Control JSC Joint Stock Company Kin ht HOD ROA Return on assets Return on equity ọc ROE Value-added tax Trư ờn gĐ ại h VAT i - LIST OF TABLES Page Table 1.1: COSO Framework's 17 Principles of Effective Internal Control 12 Table 1.2: Control environment factors 14 Table 1.3: Key Internal Control Activities 17 ếH uế Table 1.4: Possible risks in the purchase and payment cycle 22 Table 2.1: Analysis of labor force structure of the company 36 Table 2.2: Horizontal analysis of Balance Sheet for Ngoc Vien Dong Technology JSC 39 Table 2.3: Horizontal analysis of Income Statement for Ngoc Vien Dong Technology JSC 43 ht Table 2.4: Analysis of liquidity ratios in years 2018 – 2020 45 Table 2.5: Analysis of profitability ratios for the years 2018 - 2020 46 Kin Table 2.6: Analysis of growth rate in years 2018 - 2020 47 Table 2.7: Questionnaire to evaluate the control environment element of the internal control system in the purchase-to-pay cycle 48 Table 2.8: Questionnaire to evaluate the risk assessment element of the internal control ọc system in the purchase-to-pay cycle 51 ại h Table 2.9: Questionnaire to evaluate the control activities element of the internal control system in the purchase-to-pay cycle 53 Table 2.10: Questionnaire to evaluate the information and communication element of the gĐ internal control system in the purchase-to-pay cycle 58 Table 2.11: Questionnaire to evaluate the monitoring element of the internal control system in the purchase-to-pay cycle 59 Trư ờn Table 3.1 Control activities in the purchasing process 73 Table 3.2 Control activities in the receiving stage 74 Table 3.3 Control activities in the bookkeeping and keep track of accounts payable stage 75 Table 3.4 Control activities in the payment stage 76 ii - LIST OF FIGURES Page Figure 1.1: Five Components of the COSO Framework 11 Figure 1.2: The purchase and payment cycle 21 Figure 2.1: Business orientation 28 ếH uế Figure 2.2: Organizational Structure 29 Figure 2.3: Accounting department organizational structure 31 Figure 2.4: Total revenue and growth rate over years 2018-2020 48 Figure 2.5: Purchase requisition form 61 ht Figure 2.6: Supplier Selection 63 Figure 2.7: Purchase order form 64 Kin Figure 2.8: Receipt of delivery form 66 Figure 2.9: Goods received note form 67 ọc Figure 2.10: VAT invoice 68 ại h LIST OF FLOWCHARTS Page Flowchart 2.1: Document flowchart in the purchase requisition stage 60 gĐ Flowchart 2.2: Document flowchart in the ordering stage 63 Flowchart 2.3: Document Flowchart in the receiving stage 65 Flowchart 2.4: Document flowchart in the bookkeeping process and keep track of accounts Trư ờn payable stage 67 Flowchart 2.5: Purchase-to-pay process detailed workflow chart at Ngoc Vien Dong Technology JSC 66 Flowchart 2.6: Document flowchart in the purchase-to-pay process at Ngoc Vien Dong Technology JSC 71 iii gĐ Trư ờn ọc ại h ếH uế ht Kin - - CHAPTER 3: SOME SOLUTIONS CONTRIBUTED TO IMPROVEING THE INTERNAL CONTROL SYSTEM OF PURCHASE AND PAYMENT AT NGOC VIEN DONG TECHNOLOGY JOINT STOCK COMPANY ếH uế 3.1 Evaluation 3.1.1 Evaluation of control environment a Advantage ht  The corporation has a rather solid control environment, and the Board of Directors is capable and morally upright The organization always generates ideal atmosphere, and a cohesive team Kin conditions for employees to care about their life, a cheerful, social working  Employees always follow the regulations when working in the Company, ọc ensuring the right standards The Company's personnel is carefully chosen, with b Disadvantage ại h strong talents, a high morale, and a willingness to work hard  The Company's employees are still lacking in information technology skills gĐ and need to obtain more expertise  Due to a lack of human resources, there are concurrent responsibilities between departments, making fraud simple Trư ờn  Furthermore, the Company lacks a dedicated internal control department to examine the current situation of operations as well as any faults that occur swiftly and effectively 3.1.2 Assessment of risk assesment a Advantage In general, the company has clearly recognized the risks it will encounter in the future and has policies and procedures in place to mitigate those risks The Company's Board of Directors meets on a regular basis to come up with relevant solutions for the company 72 - b Disadvantage The risk assessment is largely the result of management's efforts or input from other members; nevertheless, the Company has not yet implemented risk assessment procedures ếH uế 3.1.3 Evaluation of control activities 3.1.3.1 Evaluation of the internal control in the purchasing process Table 3.1 Control activities in the purchasing process Control Activities Description ht Small-to-average amount or common goods are approved by the head of planning department, while brand-new or significant amount goods are approved by director Kin Authorization & Approval Head of planning department and director reviews a purchase order with selected vendor and signs it, indicating that the purchase is valid and necessary The Head of planning department checks the accuracy of purchase requisition (whether inventories are under the quota or not) via ERP software gĐ Information processing ại h ọc Planning department compares vendors internal data with information from external sources The planning department Performance reviews analyzes monthly purchasing results to previous period performance Analysis will be performed as needed to determine the causes of any deviations Allowing only authorized personel to have access to the vendors’s data in AMIS Segregation of duties Assign a specific personnel responsible for the purchase proposal for each department Trư ờn Physical controls a Advantage Generally, the organization has established highly comprehensive and effective general control processes in accordance with COSO 2013 norms The essential papers are approved by the HOD and are fully connected to save at the appropriate departments in order to track the company's purchase-to-pay process 73 - b Disadvantage The head of the planning department holds too many responsibilities, including reviewing purchasing requisitions and approving orders This not only makes the work overloaded, but it can also cause serious mistakes if the planning manager uses his or her authority to select suppliers to supply products and ếH uế materials The HOD can have the opportunies to earn a commision from vendors, which can affect product quality as well as the company's reputation In addition, it may happen that the head of the purchasing department and the warehouse keeper quotation to serve their own purposes ht cooperate to purchase materials and goods that are not yet in a state below the Kin Furthermore, despite the fact that the company's purchasing department is housed within the planning department, there is no independent person in charge of the position of Head of the purchasing department, who is responsible for signing and approving the company's orders, so it must be transferred to the Head of the ọc planning department ại h 3.1.3.2 Evaluation of the internal control in the receiving stage Table 3.2 Control activities in the receiving stage Authorization & Approval Description gĐ Control Activities Director approved the goods received note before inputing Physical controls Allowing only authorized personel as warehousekepper to have access to the inventories Storing inventory in a locked storeroom under the control of a team of competent security guards to guard against theft Carrying out periodic checks and counting goods Segregation of duties The warehouse keeper is not in the purchasing dept a the same time Trư ờn Information processing All documents such as GRN, ROD should be designed for multiple use to ensure that all parties involved will obtain the same information and prepared at the time of transaction to ensure completeness of information All relevant documents should be pre-numbered to facilitate quick identification 74 - a Advantage Most enterprises have organized very complete and effective general control procedures according to the standards of COSO 2013 The warehouse keeper has thoroughly executed the procedure of managing the delivery stage while receiving the items, including inspecting the quality, ếH uế specifications, and amount of the order, among other things The warehouse keeper has also completed all of the paperwork The required documents are the delivery record and the goods received note, both of which must be signed by both parties b Disadvantage ht There is no independent receiving department in Ngoc Vien Dong Technology JSC, instead, the warehouse department has responsibility for receiving Kin goods This has potential for mistakes and fraud in the process of receiving the unit's goods The warehouse keeper may have the opportunity to misrepresent the quantity of product received or may be able to swap out inferior products during ọc receipt ại h 3.1.3.3 Evaluation of the internal control in the process of bookkeeping and keep track of accounts payable gĐ Table 3.3 Control activities in the bookkeeping and keep track of accounts payable stage Control Activities Description Trư ờn Chief accountant compare the results with detailed AP account books The accounting department supervisor checks the accuracy Performance reviews and completeness of the AP report by comparing the report to copies of VAT invoices Information processing Reconcile bank account balances, check accrual accuracy for AP accounts All documents such as time cards, invoices, purchases orders and cheques should be pre-numbered to ensure fast location of any of them All documents should be designed for multiple use to ensure that all parties involved will obtain the same information All documents should be constructed to encourage correct preparation 75 - Physical controls Only allowing authorized workers access to accounting programs and data files Keeping essential papers in fire-resistant cabinets Making frequent backups of electronic data and documents, as well as keeping backup disks and drives in other secure places a Advantage ếH uế In the process of recording and keeping track of liabilities/accounts payable, the company's chief accountant has fully and carefully implemented control processes to avoid paying twice for the same invoice Aside from Amis software function, the chief accountant opens the supplier statement to keep track of unpaid invoices In which, unpaid invoices are arranged in order of due date to ensure ht payment is made as promised Kin b Disadvantage In the stage of bookkeeping and monitoring of payables, based on observations and analysis, the author has not discovered any weaknesses in this ọc stage 3.1.3.4 Evaluation of the internal control in the payment stage Authorization & Approval Description Payment transactions under 20 million are approved by the chief accountant, payment transactions above 20 million are approved by the director gĐ Control Activities ại h Table 3.4 Control activities in the payment stage Trư ờn Accounting reports are reconciled or compared to supporting Performance reviews documentation to confirm that payments are recorded in the proper account and for the correct amount Information processing Reconcile bank account balances, check accrual accuracy for accounts All papers, including time cards, invoices, purchase orders, and cheques, should be pre-numbered to facilitate quick identification To guarantee that all parties involved receive the same information, all papers should be created for multiple uses All documents should be designed to encourage proper preparation Physical controls Allowing only authorized personnel to have access to the accounting programs and data files Keeping essential papers in fire-resistant cabinets Making frequent backups of electronic data 76 - and documents, as well as keeping backup disks and drives in other secure places Segregation of duties An chief accountant is not a treasurer at the same time a Advantage ếH uế Most enterprises have organized very complete and effective general control procedures according to the standards of COSO 2013 b Disadvantage In general, and specifically in payment stage, the chief accountant performs ht too many responsibilities at the same time The chief accountant who is both in charge of monitoring debts as well as accounts payable may use the money to pay Kin debts for personal purposes, thereby causing delay in the solvency of the business and discrediting the business ọc 3.1.4 Evaluation of information and communication a Advantage ại h The advantage can be mentioned that the Company performs an excellent job of disseminating information inside the enterprise through applications such as Zalo, b Disadvantage gĐ Facebook,  The interchange of external information is limited since the Company does Trư ờn not update information on the operation condition on its website, making it difficult for new consumers to obtain information online This also affects the expansion of the surrounding market  The company still does not have communication channels in the unit to notify the employees in the company about possible errors that they discovered during the purchase and payment process  The company does not have an external communication channel for business partners such as suppliers to to report on staff infractions and constraints 3.1.5 Evaluation of monitoring a Advantage 77 -  Thanks to the organization assign sepcific mission for each departments, thus HODS can delegate define task for staff, allowing HODs to properly supervise their workforce Regular monitoring can help to reduce errors and rectify them quickly if they arise recommendations from Company members b Disadvantage ếH uế  The Board of Directors meets every week at the start of the week to receive The monitoring component in the internal control system of the purchase and create an effective monitoring channel: ht payment cycle is still too weak, firms lack the necessary material and actions to Kin  To begin with, the Company's flaw is that it lacks an internal control department or an independent department to oversee employees' performance since it is conceivable that the department head may conspire with employees or conceal faults ọc  Secondly, the Company has not established an internal control committee to ại h conduct regular audits and the company does not hire an independent external audit firm to conduct transparency checks on its year-end financial statements 3.2 Some suggestions to improve the internal control system of the purchase gĐ and payment cycle at the company 3.2.1 Some suggestions to improve the the internal control system in general Trư ờn ACFE (1996) defined occupational fraud as the ―use of one's occupation for personal enrichment through the deliberate misuse or misapplication of the employing organization's resources or assets‖ The Association classified this act into asset misappropriation, corruption, and fraudulent financial statement Thus based on the results of ACFE (2016) conducted a study: "Report to the nations on occupational fraud and abuse: 2016 global fraud study." and through the stated table of questionnaires, the author evaluates the effectiveness and efficiency of components in the internal control system of the purchase and payment cycle of Ngoc Vien Dong Technology JSC, thereby the author suggests some remedies in 78 - order to improve the purchase-to-pay cycle as well as prevent occupational frauds as follows: First and foremost, implementing an awareness program for employees about controls is one of the measures with the greatest loss reduction rate (more than 55%) As internal control focuses mostly on people and policies and procedures, ếH uế regular input training and awareness-raising for employees are essential Secondly, the company also does not have a separate internal control department to assess its operations and conduct fraud risk assessments to detect frauds occurring in the company's processes in general and purchase and payment ht cycle in particular Because if there is this department, the function of this department will be independent of other parts and not be bound by other functions Kin Furthermore, fot regular inspection, the company needs to organize random and irregular checks of books and documents, as well as control activities during work to see if there are any violations ọc Thirdly, the Director should be proactive and monitor the data rather than ại h relying entirely on the opinion of the chief accountant and the head of the planning department This will assist the company's Board of Directors to understand more accurately and objectively the financial performance of the company gĐ Fourthly, the company should set up a closed information channel and a hotline so that employees can report the violations they have discovered In Trư ờn addition, open more hotlines and email boxes directly operated by the management to update the most accurate information provided by external partners Lastly, based on the relatively positive financial situation of the company, every year in the final settlement period, the company should coordinate with an independent auditing company to review, check and verify the integrity of the company The fact of the financial statements of the enterprise thereby helps to provide the most accurate information about the financial position of the company and propose solutions to aid the company in general and the company's internal control system in particular operate act more efficiently and effectively 79 - 3.2.2 Some suggestions to improve the internal control system in each stage of the purchase and payment cycle According to ACFE (2016), manager cases occupied the highest percentage, with 62,4%, in the frequency and median loss based on the position of the ếH uế perpetrator—Southern Asia in the comparison with the rest of its counterparts including employees and executives Therefore, the company should alter the segregation of duties and assign the workload to suitable employees First, the company should not authorize the chief accountant to carry out too ht many accounting transactions in purchase-to-pay, this will not only increase work pressure but also increase the possibility of fraud Hence, BODs can assign tasks to Kin sales accountants to make payments and keep track of the AP At the same time, the treasurer also regularly checks the company's debt reminder letter in case the check has been issued but the debt is still unpaid or can be transferred to payment by bank ọc deposit ại h Second, similarly, the BODs should announce decisions on personnel appointment of The Head of Purchasing Department, separate the function including approving purchase requisitions and approving orders of The Head of gĐ Planning Department – Mr Nguyen Van Ky Last but not least, the company should separate the receiving department and Trư ờn the warehouse department This is the position with the highest probability of going wrong in the company's buying and paying cycle The company should recruit more employees or rotate employees from other departments to take on the position of receiving goods 80 - PART III: CONCLUSION AND RECOMMENDATION Conclusion Through the internship at the end of the course, the author has learned and ếH uế achieved results corresponding to specific research objectives that the topic has set out In terms of theoretically, the author has researched to understand the internal control system in the process of purchasing and paying Internal control is one of the evaluation practices in an audit, so this course is an extremely necessary purchase-to-pay cycle is one of the fundamental Kin the reality Not only that, ht foundation for the author in general and auditing students in particular to witness economic cycles of enterprises, so it is extremely necessary to study and evaluate this cycle Depending on the actual situation of each enterprise and business model, ọc the internal control system does not necessarily follow the sampling process but can be changed to adapt to each enterprise's conditions Building an internal control ại h system in an organization or enterprise is to build a control mechanism for that organization or enterprise in order to provide reasonable assurance to achieve the objectives In order for the internal control system to function effectively, it is gĐ necessary to involve all members, parts of the organization, macro-policy of the Goverment in the development orientation of the industry, stabilization of tax Trư ờn policies, and management policies to help enterprises properly apply the software, the main control tools in the internal control system In terms of comprehending the business's overview, the author has learnt more and observed how a company runs in a more realistic way, including employees and the firm's operational position, the economic cycle in general, and the purchase and payment cycle in particular In terms of understanding the current state of internal control, because the internal control system does not measure figures, it is only the process of monitoring employees, policies, systems, and departments of the company What is the impact of the internal control system on the company if it still remains 81 - unchanged? Is the company possible ti accomplish the plan without facing any misstatements? To conclude, if the operation of the Ngoc Vien Dong Technology JSC in general and the purchase and payment cycle is ineffective and inefficient, the internal control system is one of the factors that the unit must examine in order to assist the company in achieving the defined objectives ếH uế In terms of the assessment process, by using interview and observation methods as well as using diagramming and descriptive methods, based on learned and accumulated knowledge, the author has partially assessed the advantages of the internal control system in the company's purchase and payment cycle and some ht disadvantages still exist, potential risks may occur in this cycle In terms of suggesting some solutions, through the process of internship, the Kin author relies on the discovery of some shortcomings that still exist in the company's internal control system, the author has proposed some risk prevention solutions to strengthen and improve the efficiency of internal control activities at Ngoc Vien ại h ọc Dong Technology Joint Stock Company Recommendation and limitations Besides the advantages, in the process of implementing the graduation thesis, gĐ the author still encounters certain difficulties as follows: The study only used primarily observation methods, interview methods, Trư ờn comparative and analytical methods From there, the author gives the basic principles to build for enterprises in the process of improving the internal control system in accordance with the objectives and scale of the existing enterprises There is still a constraint since the study mainly focuses on the internal control system by analyzing workers' daily behaviors in the Ngoc Vien Dong Technology Joint Stock Company's purchase and payment cycle Practical experience in terms of comments and proposals to enhance the internal control system is still limited Furthermore, the author recommends that the following studies can be developed in the direction of evaluating and measuring the influence of 82 - components in the internal control system of the purchase and payment cycle It is vital to investigate the relationship between the departments related to purchasing paying activities and study the internal control system of the whole company After that, to gain a more objective perspective, investigate and compare the internal control systems of organizations in the same industry These research directions ếH uế have the potential to overcome the author's constraints The whole information and research findings of the author are presented above Despite my best attempts, my knowledge and experience in the subject field remain limited, therefore the thesis will always contain errors The author would ht appreciate your feedback and recommendations in order to enhance the graduation Trư ờn gĐ ại h ọc Kin thesis 83 - REFERENCES American Institute of Certified Public Accountants Control Risk Audit Guide Task Force, 1990 Consideration of the internal control structure in a financial statement audit American Institute of Certified Public Accountants Association of Certified Fraud Examiners, 2016 Report to the nations on ếH uế occupational fraud and abuse: 2016 global fraud study Association of Certified Fraud Examiners ACFE, 1996 Report to the Nation on Occupation Fraud and Abuse Biegelman, M.T., 2004 Designing a robust fraud prevention program ACFE ht Articles Kin Chambers, A., Selim, G and Vinten, G., 1987 Internal Auditing 2nd ed Chicago: Commerce Clearing House Inc Cheng, Q., Goh, B.W and Kim, J.B., 2018 Internal control and operational ọc efficiency Contemporary Accounting Research, 35(2), pp.1102-1139 Committee of Sponsoring Organizations of the Treadway Commission, internal Control ại h COSO, 2013 Internal Control—Integrated Framework, Committee of Coopers & Lybrand and O'Reilly, V.M., 1992 Internal Control, Integrated gĐ Framework Committee of Sponsoring Organizations of the Treadway Commission Trư ờn Gupta, R and Gill, N.S., 2012 Prevention and detection of financial statement fraud–An implementation of data mining framework Editorial Preface, 3(8), pp.150-160 10 Institute of Chartered Accountants in England & Wales, 1999 Internal control: Guidance for directors on the combined code London: Institute of Chartered Accountants in England & Wales 11 Institute of Professional Financial Managers London, UK, 2009 Analysis of the Operation and Financial Condition of the Enterprise 12 International Federation of Accountants (IFAC), 2006 Internal Controls—A Review of Current Developments New York, NY: IFAC 84 - 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Web references Ths Nguyễn Hoàng Phương Thanh Kiểm soát nội theo COSO 2013 mối quan hệ với hiệu hoạt động doanh nghiệp (website: https://www.hoiketoanhcm.org.vn/vn/trao-doi/kiem-soat-noi-bo- theo-coso-2013-va-moi-quan-he-voi-hieu-qua-hoat-dong-cua-cac-doanh- ếH uế nghiep/) Committee of Sponsoring Organizations of the Treadway Commission (website: https://www.coso.org/Pages/default.aspx) Mai Vu Kiểm soát nội (Internal control) https://knowledge.sapp.edu.vn/knowledge/aa/f8-t%C3%B3m- ht (website: t%E1%BA%AFt-ki%E1%BA%BFn-th%E1%BB%A9c-lesson-9- Kin ki%E1%BB%83m-so%C3%A1t-n%E1%BB%99i-b%E1%BB%99) Vietcombank Các số phân tích tài doanh nghiệp Trư ờn gĐ ại h ọc (website: https://vcbs.com.vn/vn/Utilities/Index/53) 86