Improving audit planning in financial statement audits performed by pwc vietnam limited

Trang 1 THE STATE BANK OF VIETNAM BANKING ACADEMY ~~~~~~*~~~~~~ GRADUATION THESIS IMPROVING AUDIT PLANNING IN FINANCIAL STATEMENT AUDITS PERFORMED BY PWC VIETNAM LIMITED Lecturer : ASSO

THE STATE BANK OF VIETNAM BANKING ACADEMY ~~~~~~*~~~~~~ GRADUATION THESIS IMPROVING AUDIT PLANNING IN FINANCIAL STATEMENT AUDITS PERFORMED BY PWC VIETNAM LIMITED Lecturer : ASSOC PROF DR LE THI THU HA Student : PHAM KHANH LINH Class : K22CLCE Student code : 22A4020102 Academic year : 2019 - 2023 Hanoi, April 2023 THE STATE BANK OF VIETNAM BANKING ACADEMY ~~~~~~*~~~~~~ GRADUATION THESIS IMPROVING AUDIT PLANNING IN FINANCIAL STATEMENT AUDITS PERFORMED BY PWC VIETNAM LIMITED Lecturer : ASSOC PROF DR LE THI THU HA Student : PHAM KHANH LINH Class : K22CLCE Student code : 22A4020102 Academic year : 2019 - 2023 Hanoi, April 2023 Banking Academy i Graduation thesis DECLARATION I hereby declare that this is my own research work and is under the scientific guidance of Assoc Prof Dr Le Thi Thu Ha The research contents and results in this document are honest and have not been published in any form before The data in the tables for analysis, comments and evaluation are collected by the author from different sources that are clearly stated in the reference section In addition, the thesis also uses a number of comments, assessments as well as data from other authors, agencies and organizations with citations and source annotations If you find any fraud, I will take full responsibility for the content of my thesis Hanoi, April 2023 Student Pham Khanh Linh Student: Pham Khanh Linh Class: K22CLCE Banking Academy ii Graduation thesis THANK YOU NOTE First of all, I would like to express my sincerest and deepest thanks to all the teachers at Banking Academy, especially the teachers of the Faculty of Accounting Auditing who have always been dedicated to teaching and given me a lot of knowledge and very useful experience during my study During my graduation thesis, I received extremely detailed and dedicated instructions from Ass Prof Dr Le Thi Thu Ha I would like to send her my sincere thanks and best wishes for her good health and a good time at work I would also like to thank all the staff at PwC Vietnam Limited who have always enthusiastically helped and created conditions for me in the audits, thereby completing the audits in the most effective way After months of internship here, I have gained and accumulated many valuable work experiences, which paves the way for me to the beginning of my career path Once again, I would like to thank and wish all the teachers at Banking Academy and colleagues at PwC Vietnam Limited being good health and always find joy in work life Thank you sincerely! Student: Pham Khanh Linh Class: K22CLCE Banking Academy iii Graduation thesis TABLE OF CONTENTS DECLARATION i THANK YOU NOTE ii TABLE OF CONTENTS iii LIST OF ABBREVIATIONS vi LIST OF FIGURES AND TABLES vii INTRODUCTION 1 The necessity of the topic Literature review The objectives of the study Research object and scope Research questions Research methodologies Overall structure of graduation thesis CHAPTER 1: THE THEORIES OF AUDIT PLANNING IN FINANCIAL STATEMENT AUDITS PERFORMED BY INDEPENDENT AUDITORS 1.1 Overview of financial statement audits performed by independent auditors …………………………………………………………………………………5 1.1.1 The concept of financial statement audits performed by independent auditors 1.1.2 The roles of financial statement audits performed by independent auditors …………………………………………………………………………….5 1.2 Overview of audit planning in financial statemetn audits performed by independent auditors 1.2.1 The concept of audit planning 1.2.2 The role of audit planning in financial statement audits performed by independent auditors 1.3 The content of audit planning in financial statements audits performed by independent auditors 1.3.1 Preliminary engagement activities Student: Pham Khanh Linh Class: K22CLCE Banking Academy iv Graduation thesis 1.3.2 Understanding the entity and its environment 11 1.3.3 Assessing audit risk 16 1.3.4 Identifying the appropriate audit approach based on audit risk assessment ……………………………………………….………………………… 19 CONCLUSION OF CHAPTER 24 CHAPTER 2: 25 THE PRACTICE OF AUDIT PLANNING IN FINANCIAL STATEMENT AUDITS PERFORMED BY PWC VIETNAM LIMITED 25 2.1 Overview of PwC Vietnam Limited 25 2.1.1 The process of formation and development 25 2.1.2 Business lines 25 2.1.3 The management structure of PwC Vietnam 26 2.1.4 The process of financial statement audits performed by PwC Vietnam Limited ………………………………………………………………………… 27 2.2 The practice of audit planning in financial statement audits performed by PwC Vietnam Limited 31 2.2.1 The content of audit planning in financial statements audits performed by PwC Vietnam Limited 31 2.2.2 The practice of audit planning in financial statements audits performed by PwC Vietnam Limited at client K 41 2.3 Comments on the practice of audit planning financial statements audits performed by PwC Vietnam Limited 68 2.3.1 Achievements 68 2.3.2 Limitations 70 CONCLUSION OF CHAPTER 74 CHAPTER 3: 75 MEASURES TO IMPROVE AUDIT PLANNING IN FINANCIAL STATEMENT AUDITS PERFORMED BY PWC VIETNAM LIMITED 75 3.1 Future development orientation of PwC Vietnam Limited 75 3.2 Measures to improve the audit planning in the financial statement audits performed by PwC Vietnam Limited 76 3.2.1 Preliminary engagement activities 76 Student: Pham Khanh Linh Class: K22CLCE Banking Academy v Graduation thesis 3.2.2 Understanding the entity and its environment 77 3.2.3 Assessing audit risk and selecting the appropriate audit procedures 80 3.3 Conditions for the implementation of the proposal 82 3.3.1 On the side of the State and management agencies 82 3.3.2 On the side of Vietnam Association of Accountants and Auditors 82 3.3.3 On the side of PwC Vietnam Limited 83 3.3.4 On the customer side 84 3.3.5 To the auditors 84 CONCLUSION OF CHAPTER 85 CONCLUSION 86 LIST OF REFERENCES 87 APPENDIX 88 Student: Pham Khanh Linh Class: K22CLCE Banking Academy vi Graduation thesis LIST OF ABBREVIATIONS Acronyms CA CES CFO EGA ISA ISQC KPI OM PIE PM SUM Original Chief Accountant Central Entity Services Chief Finance Officer Evidence Gathering Activity International Standards on Auditing International Standard on Quality Control Key Performance Indicator Overall materiality Public Interest Entity Performance materiality Summary of Uncorrected Misstatement Student: Pham Khanh Linh Class: K22CLCE Banking Academy vii Graduation thesis LIST OF FIGURES AND TABLES Table 1.1: Benchmark to determine materiality Table 1.2: The relationship between audit risk and reliability of audit evidence obtained Table 2.1: The relationship between the nature of audit entity, benchmark and rule of thumb Table 2.2: The relationship between factors to determine the haircut Table 2.3: The relationship between factors and SUM Table 2.4: The planning phases Table 2.5: The engagement audit team performed the financial statement audit for client K for the year-ended December 31st, 2022 Table 2.6: Determine materiality of client K Table 2.7: Design test of control for Revenue at client K Table 2.8: Design test of details for Revenue at client K Figure 2.1: Auditing process of financial statement at PwC Co., Ltd Figure 2.2: Working paper - Conduct independence review (1) Figure 2.3: Working paper - Conduct independence review (2) Figure 2.4: Working paper - Conduct independence review (3) Figure 2.5: Working paper - Conduct independence review (4) Figure 2.6: Working paper – Perform engagement acceptance/continuance (1) Figure 2.7: Working paper - Perform engagement acceptance/continuance (2) Figure 2.8: The K’s engagement letter (1) Figure 2.9: The K’s engagement letter (2) Figure 2.10: Working paper – Understanding K Co and its environment (1) Figure 2.11: Working paper – Understanding K Co and its environment (2) Figure 2.12: Working paper – Understanding K Co and its environment (3) Figure 2.13: Working paper – Understanding K Co and its environment (4) Figure 2.14: Working paper – Understanding related parties Figure 2.15: Working paper - Understanding K’s control environments (1) Figure 2.16: Working paper - Understanding K’s control environments (2) Figure 2.17: Working paper - Understanding K’s control environments (3) Figure 2.18: Working paper - The entity’s risk assessment process Figure 2.19: Working paper - Understanding the information system and communication (1) Figure 2.20: Working paper - Understanding the information system and communication (2) Figure 2.21: Working paper - Understanding the information system and communication (3) Figure 2.22: Working paper – Understanding monitoring of controls (1) Figure 2.23: Working paper – Understanding monitoring of controls (2) Student: Pham Khanh Linh 16 18 35 36 37 39 47 62 66 67 27 42 43 44 44 45 46 48 49 50 51 52 53 53 54 55 55 56 57 58 58 59 59 Class: K22CLCE Banking Academy viii Graduation thesis Figure 2.24: K’s control activities of Revenue and Account Receivables (1) Figure 2.25: K’s control activities of Revenue and Account Receivables (2) Figure 2.26: K’s control activities of Revenue and Account Receivables (3) Figure 2.27: K’s control activities of Revenue and Account Receivables (4) Figure 2.28: Preliminary analytical procedures of Revenue at client K Figure 2.29: Audit risk assessment at assertion level of Revenue of K Co Student: Pham Khanh Linh 60 60 61 61 63 65 Class: K22CLCE Banking Academy 78 Graduation thesis During the audit planning stage, depending on the complexity, nature and characteristics of each account and transaction that the auditor will consider using an external expert, if any, a prior estimated fee is required for hiring experts to calculate a reasonable level of audit costs In addition, the auditor also needs to carefully consider the expertise, objectivity, and experience of the experts to evaluate the expert's opinions and documents because this is an extremely special audit evidence The reason for that is the person who is ultimately responsible for the outcome of the audit is the auditor  Using other methods to record client’s internal control system Basis for making recommendations ISA 315 “Identifying and assessing risk of material misstatement assessment” emphasizes the purpose of assessment the client's internal control system will help the auditor in the process of auditing It could adjust and estimate the amount of work to be done in order to reduce costs and unnecessary work for the audit while ensuring the quality of account balances and transactions At PwC, the assessment is usually through the auditor's questionnaire, which must be based on the client's experience and audit records; the examination of relevant documents provided by the client; and observing business processes Recommendations and implementation roadmap At the same time, auditors need to improve their ability to the application of English and describe the client's accounting information system and internal control process to improve the quality of working papers Also, auditors can use flowcharts in describing the company's business processes or internal control to show it clearly, accurately, and easily Use narrative descriptions only to explain points that need further clarification Specifically: Narrative method: To avoid elusiveness, information must be presented in a fixed format, for example, according to the elements that make up internal control It will be more effective when combined with the other two methods when the client's internal control system is too complicated In addition, the report should only be applied to businesses with wide activities so that the auditor can summarize the main objectives of the client's internal control Questionnaire method: According to each client group, for example, Japanese, and Chinese each type of business will have a separate questionnaire Or in the field of production, trade-in services, information technology Only effective when there is a detailed questionnaire built according to the nature of the business Therefore, auditors need to build a detailed questionnaire system based on a common criterion to classify Student: Pham Khanh Linh Class: K22CLCE Banking Academy 79 Graduation thesis clients When PwC is built, the questionnaires will bring better value to the client's internal control assessment Flowchart method: This is a difficult method, but only through training, the auditors at PwC Vietnam can use it fluently Every year, the company should organize a training session on how to use the flowchart for employees When it becomes a system, employees will be familiar and proficient in using it This method is very difficult and requires the auditor to have a comprehensive and in-depth view of the client's business activities as well as the document circulation process in that unit However, in cases where the internal control of the unit is too advanced and scattered, the auditor should integrate the above methods in order to be able to most effectively describe the collected information  The understanding and assessment of the IT environment In order to increase the effectiveness of the audit, in some clients with modern IT systems, financial information or special software must be used to manage, process, store and security (e.g insurance companies, banks), the auditor can ask for support from the IT Assurance Department to perform audits for automated controls and general controls about IT, which helps to reduce the number of substantive tests that auditors have to perform later  Improving of materiality determination for each account balance and transaction on the financial statement Basis for making recommendations ISA 320 “Materiality in planning and performing an audit” require the auditor to determine at planning stage materiality at overall financial statement level, and where lower amount can impact the decision of user for specific transaction, balance and disclosure, such lower amount In addition, ISA 320 also require to determine performance materiality for purposes of assessing the risks of material misstatement and determining the nature, timing and extent of further audit procedures Revise the materiality or set the lower amount if required during any stage of audit Recommendations and implementation roadmap Materiality is an important factor that forms the basis for the auditor to conclude that the financial statements are presented truly and fairly in all material respects During the audit planning process, the auditor will evaluate the materiality of the financial statements, the acceptable misstatements, and the impact of the misstatements, the scope of audit Thereby, they could determine the nature, timing and audit procedures to be Student: Pham Khanh Linh Class: K22CLCE Banking Academy 80 Graduation thesis performed From the initial assessment, the auditor could make an allocation of material to each account and transaction in the financial statements However, when determining materiality, the auditor at PwC Vietnam only stopped at determining the materiality level for the entire financial statements without the allocation for each individual item Therefore, in order to be more complete in determining materiality, based on the nature and characteristics and audit risks of each item, the company should establish the distribution of materiality for each account balance and transaction The reason is that audit risks for each account will be inversely proportional to the materiality to which it is allocated For example, the auditor can based on the results of the previous year's audit and the scale of production and business activities that allocate materiality to Revenue It could help the auditor to determine the types of audit evidence needs to be obtained, and audit procedures should be performed at a minimum cost but still ensure the quality of the audit 3.2.3 Assessing audit risk and selecting the appropriate audit procedures  Detailed guidance on performing audit procedures The auditor should maintain a professional skepticism and assess the risk level for each account and transaction in the financial statements and each corresponding assertion with particular emphasis on risk factors emphasized by accounting standards (fraud risk, legal risk,…) To achieve this, tests of controls and substantive tests should be designed in more detail It is necessary for the Engagement Leader to clearly state the audit strategy, the required procedures, and the documents that need to be obtained At present, the company's tests of controls and substantive tests are of a primary and rather ambiguous nature This greatly affects the flexibility of auditors in some cases Especially for inexperienced audit assistants, there will be a feeling of confusion and difficulty in the audit As a result, with more specific instructions for the procedures, the audit assistants will have a certain confidence in doing their job, and moreover, execute professional judgment when providing audit services of financial statements to clients At the same time, detailed instructions will help the auditors to better understand the nature of audit procedures so that they can be customized in specific cases In addition, audit assistants should receive detailed and periodic training on audit procedures  Analytical procedures Basis for making recommendations Student: Pham Khanh Linh Class: K22CLCE Banking Academy 81 Graduation thesis According to ISA 520 “Analytical procedures”, analytical procedures are used throughout the audit process and are conducted for three primary Preliminary analytical review are performed to obtain an understanding of the business and its environment (e.g financial performance relative to prior years and relevant industry and comparison groups), to help assess the risk of material misstatement in order to determine the nature, timing and extent of audit procedures, ie to help the auditor develop the audit strategy and program At substantive analytical procedures, Analytical procedures are used as substantive procedures when the auditor considers that the use of analytical procedures can be more effective or efficient than tests of details in reducing the risk of material misstatements at the assertion level to an acceptably low level Near the end of the audit, designing and performing analytical procedures to assist the auditor when forming an overall conclusion as to whether the financial statements are consistent with the auditor's understanding of the entity Recommendations and implementation roadmap When performing the analysis procedure, the auditor may quantify periods for the amount of each account and transaction in the current year and calculate the difference between this expectation and the actual amount to avoid mistakenly identifying abnormal differences and wasting time investigating the causes To be able to optimize the efficiency of performing analytical procedures, there are a number of solutions that auditors can use such as: (1) Auditors can flexibly combine different analytical procedures to diversify approaches to accounts and transactions, improve the quality of obtained audit evidence and increase the efficiency of analytical procedures (2) Build advanced analytical models to understand and collect information about clients and business risks, thereby identifying audit risks that need attention during the audit Preliminary analytical procedures would help the auditors identify accounts and transactions with unusual fluctuations, thereby serving as a basis for selecting and performing appropriate audit procedures Analytical procedures are not effective because they can only identify the time variation of the accounts being audited Therefore, the auditor needs to flexibly combine them with other audit procedures to improve audit quality and the effectiveness of the audit procedures performed In addition, when conducting analysis, the auditor can add other indicators to identify the relationship between the criteria and then compare them with other enterprises operating in similar industries and competitors  Upgrade and improve audit software Student: Pham Khanh Linh Class: K22CLCE Banking Academy 82 Graduation thesis To better serve auditors during the audit, upgrading Aura audit software is extremely necessary With the limitations mentioned in Chapter 2, the audit software needs to be modified to reduce the load of file updates to the Online Aura software The solution for internet-related problems that can be made available broadcast wireless WiFi for use, and in cases where there is more than one accessor, there should be a warning to the user 3.3 Conditions for the implementation of the proposal 3.3.1 On the side of the State and management agencies Building and completing the legal system for audit activities is also urgent working in the current situation The more stable the legal environment, the more audit risk will be significantly reduced In recent times, with the advent of new accounting and auditing standards, the legal environment for audit activities is gradually being improved and revised to be more suitable for the actual situation However, because it is in the finishing stage, there is still a lack of synchronization between accounting and auditing standards Currently, the system of Vietnamese auditing standards is still in the final stage of completion, the legal framework is not complete There is a lack of uniformity and there are still many limitations in quality The asynchronous in both accounting and auditing regimes make the legality of the audit report not high First of all, in order to improve the legal environment, it is necessary to improve the accounting and auditing regime and policies The State needs to continue to create favorable conditions for the scope of activities in the field of auditing by expanding the scope and subjects of external audit, creating a healthy competitive environment to have conditions to promote their strengths in the field of auditing At the same time, the State should also create conditions for external foreign-invested auditing firms to operate in Vietnam, thereby creating a push for Vietnamese auditing firms to improve their performance to compete with foreign audit firms The introduction of the Law on Independent Audit, effective from January 1st, 2012, is expected to overcome the limitations and shortcomings in the auditing industry over the years It will contribute to a healthy investment environment in Vietnam and transparency of the country's financial system in a high growth rate and integration trend 3.3.2 On the side of Vietnam Association of Accountants and Auditors Accounting and auditing associations have existed for many years and hold an extremely important position and role in the management, supervision, inspection and evaluation of the quality of accounting and auditing services At the same time, the Student: Pham Khanh Linh Class: K22CLCE Banking Academy 83 Graduation thesis associations are also the place to regularly update the latest documents, documents, and guidelines in the field of accounting and auditing Especially for the audit planning stage, the Association is responsible for sharing professional experience and training for the auditors, but the training for auditing procedures related to the audit planning is still limited Therefore, the Association should organize training sessions to improve knowledge and professional capacity for auditors related to auditing financial statements in general and accounting for audit planning in particular The Association of Accountants and Auditors should support the Ministry of Finance in developing and finalizing current documents, circulars on accounting policies, and accounting and auditing standards At the same time, expanding the exchange, learning and researching about the financial statement audit process between domestic auditing firms and foreign auditing firms It is necessary to cooperate with organizations in the accounting profession, namely ACCA - Association of Chartered Certified Accountants UK helps auditors could give change and gain more knowledge 3.3.3 On the side of PwC Vietnam Limited The company needs to pay more attention to the design of the financial statement audit programs in general and the audit planning in particular The proposed regulations need to be clear, specific, and consistent Ensuring that when put into practice, they will be implemented in accordance with the design Always clearly grasp the point of view from the very beginning that programs and guidelines are only general and oriented and need to be applied flexibly in specific audits Developing a process to apply analytical procedures from the stage of understanding to different clients The company also needs to focus on recruiting and training quality human resources to attract highly qualified and experienced employees; there are always training programs to help auditors improve their knowledge and access to the latest current standards and regimes For example, employees with high performance at work should be commended and rewarded; and flaws need to be discussed openly to improve Increase the initiative and flexibility for auditors: The guidelines of PwC Vietnam and PwC Global should be considered as a framework to orient the work and be applied flexibly for each client instead of just listing the workings that the auditors perform Actively join associations; organize accounting and auditing to gain more experience and knowledge with other auditing firms on training issues and always keep good relationships with clients and other auditing firms Simultaneously, constantly apply science and technology, improve and update the audit software and control system to be consistent with the audit methods that have been given previously Student: Pham Khanh Linh Class: K22CLCE Banking Academy 84 Graduation thesis Improving the quality of Aura audit software: As mentioned in the previous sections, Aura audit software is a tool that greatly supports auditors in the process of performing an audit However, there are still quite a few limitations that need to be improved For example, the company could provide more in-depth training on software functions and apply scientific and technical advances technologies to overcome weaknesses in the platforms 3.3.4 On the customer side Currently, enterprises are the main beneficiaries of audit activities, so enterprises should actively carry out this activity instead of being required by the State In the process of selecting an auditing company, businesses should focus on the reputation and quality of services provided by the auditing company rather than companies with low audit costs The reason is that some audit firms want to keep clients, it is acceptable to lower audit standards to reduce audit costs Enterprises need to build a reasonable accounting cycle and internal control system in accordance with requirements and standards to reduce audit risks During the audit, it is necessary to coordinate and cooperate with other auditors, always be ready to provide documents and vouchers when be required, not provide false information to the auditors; thereby connecting the relationship with the auditing company, helping to save time and costs for the audit 3.3.5 To the auditors The auditors are the people directly involved in conducting the audit and who will be responsible for the results of the audit Therefore, the auditor needs to comply with the following in order to be able to complete the assigned tasks quickly and in a timely manner:  Auditors need to strictly comply with the regulations and standards of the Code of Ethics, continuously train, and update their knowledge and responsibilities  Self-equipped with a solid foundation on legal documents, regulations, circulars, decrees, and guidelines related to accounting and auditing  Always constantly improve the professional level, knowledge, information, legal documents, and current policies, willing to take responsibility for the mistakes, set standards to complete the work  Actively give suggestions to the Auditing Guidelines, so that these guidelines be not only in compliance with current regulations but also flexibly and applied in practice with high practicality Student: Pham Khanh Linh Class: K22CLCE Banking Academy 85 Graduation thesis CONCLUSION OF CHAPTER Completing the audit planning process in the audit of financial statements plays a very important role because the audit plan helps auditors better understand the process and have a better understanding of the situation of the entity being audited, thereby being able to cover all material aspects of the audit and contributing to a preliminary assessment of possible frauds and audit risks The effective audit planning process depends on many factors such as mechanisms and policies of state agencies and professional associations Besides, the procedures and policies related to the audit planning process such as risk assessment, determination of materiality, preliminary analytical procedures applied by the audit firm are also characteristic factors strongly influence the quality of the audit plan From there, it is possible to apply all the factors that affect the audit planning process in combination with the actual situation of audit planning in auditing financial statements at Vietnamese to provide recommendations to improve the process and quality of audit services Student: Pham Khanh Linh Class: K22CLCE Banking Academy 86 Graduation thesis CONCLUSION As a company that regularly ranks in the top of the audit firms assessed by the Ministry of Finance, which has the best quality of audit and assurance services in the country, the audit planning in the audit of financial statements at PwC Vietnam Limited has reached a high level of completion Other than ISA 300 “Planning on an audit of financial statements”, PwC's audit planning is also built on many other audit standards on internal control, risk assessment, materiality determination… as well as legal documents of Vietnam Although there are still some shortcomings, the company's leaders and employees are constantly trying to improve the quality of the audit planning on the financial statements audits - the pivotal stage for the audit To achieve such high quality and recognition, it is the result of a whole process of building the PwC reputation with almost 30 years in Vietnam and nearly 200 years of history of its predecessors - Price Waterhouse and Coopers & Lybrand PwC maintains high entry standards for auditors and reinforces its image as a professional service provider, with the goal of "building trust in society and solving important issues" Due to the limited research time, the scope is relatively wide and complex, compared to the capacity of a final year student intern at a company, my graduation thesis is inevitable limitations and shortcomings I am looking forward to receiving comments and suggestions from the teachers to improve the graduation thesis and contribute to the improvement of audit planning at the company Once again, I would like to express my sincerest gratitude to Ms Le Thi Thu Ha and all staff at PwC Vietnam Limited helped me complete this graduation thesis Student: Pham Khanh Linh Class: K22CLCE Banking Academy 87 Graduation thesis LIST OF REFERENCES Alvin A Arens, Randal J Elder, Mark S Beasley & Chris E Hogan (2017), Auditing and Assurance Services: An integrated Approach (Sixteenth Edition), Pearson Education, Inc., New York, USA International Auditing and Assurance Standards Board (2022), International Standard on Auditing 220 (Revised) Quality management for an audit of financial statements, issued on December 15th, 2022 International Auditing and Assurance Standards Board (2022), In International Standard on Auditing 300 (Revised) Planning an audit of financial statements, issued on May 17th, 2022 International Auditing and Assurance Standards Board (2021), In International Standard on Auditing 315 (Revised) Identifying and assessing the risks of material misstatement, issued on December 15th, 2021 International Auditing and Assurance Standards Board (2022), In International Standard on Auditing 320 (Revised) Materiality in planning and performing an Audit, issued on May 17th, 2022 International Auditing and Assurance Standards Board (2022), In International Standard on Auditing 500 (Revised) Audit evidence, issued on May 17th, 2022 International Auditing and Assurance Standards Board (2022), International Standard on Auditing 520 (Revised) Analytical procedures, issued on May 17th, 2022 International Federation of Accountants (2022), Handbook of the international code of ethics for professional accountants (Revised), issued on April 20th, 2022 Nguyen Tho Khang (2018), Improving the audit planning of financial statement audits at UHY auditing and consulting services company limited, graduation thesis, National Economics University, Vietnam 10 PwC Vietnam Limited (2022), PwC audit files and working paper of client K 11 PwC Vietnam Limited (2022), PwC Corporate brochure, issued on February 10th, 2022 12 PwC Vietnam Limited (2022), PwC Global Guide, retrieved on 18 April 2022 Student: Pham Khanh Linh Class: K22CLCE Banking Academy 88 Graduation thesis APPENDIX Appendix I — Organization chart of the management apparatus of PwC Vietnam Limited Source: PwC Global Guide Student: Pham Khanh Linh Class: K22CLCE Banking Academy 89 Graduation thesis Appendix II – Assertions in auditing of financial statement The assertions listed in ISA 315 (Revised 2019) “Identifying and assessing risk of material misstatement” are as follows:  Assertions about classes of transactions and events and related disclosures for the period under audit (i) Occurrence – the transactions and events that have been recorded or disclosed have occurred, and such transactions and events pertain to the entity (ii) Completeness – all transactions and events that should have been recorded have been recorded, and all related disclosures that should have been included in the financial statements have been included (iii) Accuracy – amounts and other data relating to recorded transactions and events have been recorded appropriately, and related disclosures have been appropriately measured and described (iv) Cut–off – transactions and events have been recorded in the correct accounting period (v) Classification – transactions and events have been recorded in the proper accounts (vi) Presentation – transactions and events are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework  Assertions about account balances and related disclosures at the period end (i) Existence – assets, liabilities and equity interests exist (ii) Rights and obligations – the entity holds or controls the rights to assets, and liabilities are the obligations of the entity (iii) Completeness – all assets, liabilities and equity interests that should have been recorded have been recorded, and all related disclosures that should have been included in the financial statements have been included (iv) Accuracy, valuation and allocation – assets, liabilities and equity interests have been included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments have been appropriately recorded, and related disclosures have been appropriately measured and described (v) Classification – assets, liabilities and equity interests have been recorded in the proper accounts Student: Pham Khanh Linh Class: K22CLCE Banking Academy 90 Graduation thesis (vi) Presentation – assets, liabilities and equity interests are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework Student: Pham Khanh Linh Class: K22CLCE Banking Academy Student: Pham Khanh Linh 91 Graduation thesis Class: K22CLCE _ pwc Private & Confidential 31/03/2023 LETTER OF INTERNSHIP CONFIRMATION Xac nh~n thtrc ~p To Whom It May Concern/Gti'i cac co quan hCJ'u quan This is to confirm the internship of Ms Pham Khanh Linh with Branch of PwC (Vietnam) Limited in Hanoi following her request Details are as follows: BAng thu chung t6i xac nh~n qua trinh th11c t~p t?i Chi nhanh Cong ty TNHH PwC (Vi(lt Nam) l?i Ha N¢i cua Ch/ Ph{Jm Khfmh Linh nhu du&i