NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ACCOUNTING AND AUDITING *** AUDITING INTERNSHIP REPORT Company BDO AUDIT SERVICES COMPANY LIMITED Student’s name Nguyen Duy Anh Class Kiem Toan CLC 62A Student’[.]
NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ACCOUNTING AND AUDITING -*** - AUDITING INTERNSHIP REPORT Company: BDO AUDIT SERVICES COMPANY LIMITED Student’s name : Nguyen Duy Anh Class : Kiem Toan CLC 62A Student’s ID : 11200203 Supervisor: Prof Dr Pham The Hung HA NOI, 9/2023 TABLE OF CONTENTS LIST OF ABBREVIATIONS .i LIST OF TABLES ii LIST OF FIGURES iii INTRODUCTION PART 1: OVERVIEW OF T&M INVESTMENT JOINT STOCK COMPANY 1.1 Establishment and Development of T&M Investment Joint Stock Company 1.1.1 Corporate information 1.1.2 Establishment and Development 1.1.3 Missions of business 1.1.4 Scope of business .3 1.1.5 Corporate Structure 1.2 Management of T&M Investment Joint Stock Company .4 1.2.1 Organizational structure .4 1.2.2 Functions and responsibilities 1.3 Financial Performance in Recent Years of T&M investment Joint Stock Company PART 2: ACCOUNTING SYSTEM IN T&M INVESTMENT JOINT STOCK COMPANY 13 2.1 Operation of Accounting System in T&M Investment Joint Stock Company 13 2.1.1 Organizational structure of accounting department 13 2.1.1.1 Objective 13 2.1.1.2 Functions 13 2.1.1.3 Missions 14 2.1.1.4 Organizational structure 19 2.1.2 Functions and responsibilities of each position in accounting department 21 2.2 Application of Accounting Policy and Accounting Standard in T&M Construction and Investment Joint Stock Company 29 2.2.1 Accounting standard and accounting regime application 29 2.2.2 Accounting policies 29 2.2.3 Application of accounts system 37 2.2.4 Application of accounting documents 38 2.2.5 Application of accounting books 41 2.2.6 Application of accounting reports 44 2.2.6.1 Financial statements .44 2.2.6.2 Managerial reports 45 2.3 Accounting for Some Key Cycles in T&M Investment Joint Stock Company 46 2.3.1 Accounting for payroll .46 2.3.1.1 Features of employees and payroll methods applied .46 2.3.1.2 Account in use 48 2.3.1.3 Source of documents .50 2.3.1.4 Book keeping process for payroll 51 2.3.1.5 Accounting for payroll deductions 52 2.3.2 Accounting for cash 53 2.3.2.1 Feature of cash .53 2.3.2.2 Account in use 53 2.3.2.3 Source of documents .55 2.3.2.4 Book keeping process for cash 56 PART 3: ASSESSMENT AND RECOMMENDATIONS ON ACCOUNTING SYSTEM IN T&M INVESTMENT JOINT STOCK COMPANY 57 3.1 Assessment of the Operation of Accounting System in T&M Investment Joint Stock Company 57 3.1.1 Achievements 57 3.1.2 Limitations .58 3.1.3 Recommendations 58 3.2 Assessment of the Application of Accounting Policy in T&M Investment Joint Stock Company 59 3.2.1 Achievements 59 3.2.2 Limitations .61 3.2.3 Recommendations 62 CONCLUSION 63 REFERENCES 64 LIST OF ABBREVIATIONS Abbrevi Explanation CB Closing balance Dept Department HR Human Resources OB Opening balance VAT Value added tax VND Vietnamese Dong ation i LIST OF TABLES Table 2.1: List of accounts used by T&M Investment Joint Stock Company 38 Table 2.2: List of typical accounting documents used at T&M Investment Joint Stock Company .39 Table 2.3: Percentage of payroll deductions from 07/01/2021 to 09/30/2021 47 Table 2.4: Percentage of payroll deductions from 10/01/2021 to 06/30/2022 47 Table 2.5: Percentage of payroll deductions from 07/01/2022 to 09/30/2022 48 Table 2.6: Percentage of payroll deductions since 10/01/2022 48 ii LIST OF FIGURES Figure 1.1: Corporate Structure Figure 1.2: T&M Investment Joint Stock Company ‘s Organizational Structure Figure 1.3 T&M's total assets, total liabilities and total equity from 2020 to 2022 10 Figure 2.1: Accounting department structure 20 Figure 2.2: General process of transferring accounting documents 40 Figure 2.3: Procedure of recording entries in general journal .42 Figure 2.4: Procedure of recording in the form of general ledger using MISA accounting software .43 Figure 2.5: General rotation flows of documents in payroll cycle 51 Figure 2.6: Rotation flows of accounting documents for cash receipt 55 Figure 2.7: Rotation flows of accounting documents for cash payment 55 Figure 2.8: Book keeping process for cash 56 iii INTRODUCTION Many economies are on the edge of a chain reaction of defaults, reductions in crucial investment, slowdowns in the economy, and increases in unemployment One of the most important things to in this case is to create and maintain a tight management system and an efficient information system For any business to this, accounting must be fully utilized as a crucial instrument for delivering fast, accurate, and valuable economic information The accounting data can serve various purposes, such as aiding in management decision-making, facilitating government audits, and influencing bank lending decisions Thus, it is imperative for the survival and advancement of any business to maintain a well-structured accounting system T&M Investment Joint Stock Company, a well-established firm with nearly 15 years of experience in the realms of trade, services, construction, and installation, has continuously enhanced its accounting system since 2009 The internship opportunity afforded to me at T&M Investment Joint Stock Company provided an advantageous environment to put theoretical knowledge into practical use, thus enhancing my comprehension of accounting tasks During the internship period, I gathered information and successfully compiled my Accounting Internship Report, guided by Prof Dr Nguyen Huu Anh and Mrs Phan Thi Ngoc Linh, who serves as the company's Chief Accountant This report encompasses three principal sections as outlined below: Part 1: Overview of T&M Investment Joint Stock Company Part 2: Accounting System in T&M Investment Joint Stock Company Part 3: Assessment and Recommendation on Accounting System in T&M Investment Joint Stock Company I would like to thank Prof Dr Nguyen Huu Anh as well as Ms Phan Thi Ngoc Linh and other accountants in the T&M Investment Joint Stock Company’s accounting department for helping me to complete this report 1PART 1: OVERVIEW OF BDO AUDIT SERVICES COMPANY LIMITED 1.1 Establishment and Development of BDO Audit Services Company Limited 1.1.1 Corporate information Enterprise name in Vietnamese: CÔNG TY TRÁCH NHIỆM HỮU HẠN KIỂM TOÁN BDO Enterprise name in foreign language: BDO AUDIT SERVICES COMPANY LIMITED Enterprise short name: BDO AUDIT CO.,LTD Enterprise code: 0101333767 Establish date: December 09th, 2002 Representative/Chairman: Mrs Mai Lan Phương / Mr Bùi Văn Vương Address: 20th Floor, ICON4 Tower, 243A De La Thanh Street Dong Da District, Hanoi Phone: + (84)24 3783 3911 1.1.2 Establishment and Development 1.1.2.1 BDO International BDO International stands out as the fifth largest professional services firm globally, experiencing rapid growth as one of the most dynamic international networks of accounting firms With an extensive presence, the network boasts almost 111,303 partners and staff across 1,803 offices operating in 164 countries In 2022, its worldwide fee income surpassed an impressive US$ 12.8 billion In 1963, the Binder Seidman International Group was established through collaboration among firms in Canada, Germany, the Netherlands, the United Kingdom, and the USA, with the aim of facilitating the provision of a comprehensive international service A decade later, in 1973, the group officially adopted the name Binder Dijker Otte & Co The year 1988 marked a significant turning point as the organization established a global structure, placing the BDO acronym before the name of each local member firm By 2010, the company streamlined its global identity, choosing to be known simply as 'BDO' worldwide Celebrating its 50th anniversary in 2013, BDO had firmly established itself as a key player in the international professional services sector In 2017, BDO was honored for the second time with the title of Network of the Year 1.1.2.2 BDO in Vietnam BDO Vietnam, as part of the BDO International global network, adopts global practices of international standards BDO has had a presence in Vietnam since 2001 with offices in Ho Chi Minh City and Hanoi a team of more than 200 partners and staff BDO Vietnam has an alliance with BDO Malaysia and this provides a better pool of experience and specialization and access to more than 55 partners and directors supported by more than 600 professional staff to serve clients better 1.1.3 Services of BDO 1.1.3.1 Audit and Assuarance Statutory audit and other attestation services Reporting Accountants/ Initial Public Offering Cross border financing IFRS/ MFRS Convergence and US GAAP Reporting Special Purpose Audits/ Agreed Upon Procedures