Trang 1 FOREIGN TRADE UNIVERSITY FACULTY OF ACCOUNTING AND AUDITING ---***--- MID-TERM INTERNSHIP REPORTMajor: Accounting – Auditing with ACCA Orientation DISCUSSION ON THE IMPROVEMENT O
FOREIGN TRADE UNIVERSITY FACULTY OF ACCOUNTING AND AUDITING -*** MID-TERM INTERNSHIP REPORT Major: Accounting – Auditing with ACCA Orientation DISCUSSION ON THE IMPROVEMENT OF THE INTERNAL CONTROL SYSTEM AT VNP GROUP JOINT STOCK COMPANY Student Name : Nguyen Nam Hai Student Code : 1818820025 Class : English Intake : 57 Supervisor : Msc Nguyen Thanh Loan Hanoi, August 2021 FOREIGN TRADE UNIVERSITY FACULTY OF ACCOUNTING AND AUDITING -*** MID-TERM INTERNSHIP REPORT Major: Accounting – Auditing with ACCA Orientation DISCUSSION ON THE IMPROVEMENT OF THE INTERNAL CONTROL SYSTEM AT VNP GROUP JOINT STOCK COMPANY Student Name : Nguyen Nam Hai Student Code : 1818820025 Class : English Intake : 57 Supervisor : Msc Nguyen Thanh Loan Hanoi, August 2021 STATUTORY DECLARATION I formally declare that I myself have written this Mid-course Internship Report independently I did not use any other support except for the documents and the sources mentioned in the References of the report Hanoi, 20 August 2021 Nguyen Nam Hai i ACKNOWLEDGEMENT I am much obliged to MSc Nguyen Thanh Loan, lecturer of the Faculty of Accounting and Auditing at Foreign Trade University, for her precious feedback on this report At the same time, I'd like to express my gratefulness to my supervisor and all the staff at VNP Group Joint Stock Company in general, and the co-workers in the Internal Control Department in specific, for their enthusiastic guidance during the internship course ii TABLE OF CONTENT STATUTORY DECLARATION i ACKNOWLEDGEMENT ii ABBREVIATIONS vi LIST OF DIAGRAMS vii LIST OF TABLES vii LIST OF PICTURES vii INTRODUCTION CHAPTER 1: OVERVIEW ABOUT VNP GROUP JOINT STOCK COMPANY…… 1.1 Overall information of VNP Group Joint Stock Company 1.1.1 The process of establishment and development of VNP Group Joint Stock Company 1.1.2 The business lines 1.1.3 The organization structure 1.2 Overall about Internal Control Department 1.2.1 Duties of Internal Control Department 1.2.2 Rights of Internal Control Department CHAPTER 2: THE REALITY OF INTERNAL CONTROL SYSTEM AT VNP GROUP JOINT STOCK COMPANY 10 2.1 The control environment 10 2.1.1 Management’s philosophy and operating style 10 2.1.2 Organisational structure and assignment of responsibility 10 iii 2.1.3 Human resource policies and practices 11 2.1.4 Internal Control Department 12 2.2 Control activities 12 2.2.1 Purchase and payment process 12 2.2.2 Sale and money collection process 15 2.2.3 Process of controlling the Bao Kim project's payment-intermediary services …………………………………………………………………………………18 2.3 The information system relevant to financial reporting 25 2.4 Monitoring 28 2.4.1 The operational reporting process of departments 28 2.4.2 The periodic inspection process of the Internal Control Department 30 CHAPTER 3: ASSESSMENT OF AND RECOMMENDATIONS TO INTERNAL CONTROL SYSTEM AT VNP GROUP JOINT STOCK COMPANY…… 32 3.1 General assessment of the internal control system 32 3.1.1 The control environment 32 3.1.2 Control activities 32 3.1.3 Information and communication 32 3.2 Factors that threaten the effectiveness of the internal control system of VNP Group Joint Stock Company 33 3.2.1 The control environment 33 3.2.2 Control activities 33 3.2.3 The information system relevant to financial reporting 34 iv 3.3 Reasons for threatens of the effectiveness of the internal control system at VNP Group Joint Stock Company 34 3.4 Recommendations to improve the internal control system at VNP Group Joint Stock Company 35 3.4.1 The control environment 35 3.4.2 Improving solutions for control procedures 36 3.4.3 Completing solution for information system 37 CONCLUSION 38 REFERENCES 39 APPENDIX 40 v ABBREVIATIONS No Abbreviation Stands for Vietnamese meaning BODs Board of Directors Hội đồng quản trị CFO Chief Financial Officer Giám đốc tài ERP Enterprise Resource Planning ERP system HR IT Department OP Department Enterprise Resource Planning system Hoạch định tài nguyên doanh nghiệp Hệ thống hoạch định tài nguyên doanh nghiệp Human Resource Nguồn nhân lực Information Technology Bộ phận Công nghệ Department Thông tin Operating Department Bộ phận vận hành vi LIST OF DIAGRAMS Diagram 1.1 The management structure of VNP Group Diagram 2.1 Purchase and payment process 13 Diagram 2.2 Sale and money collection process 16 Diagram 2.3 The contractual control coordination process 18 Diagram 2.4 The operational reporting process of departments 29 Diagram 2.5 The periodic inspection process of the Internal Control Department 31 LIST OF TABLES Table 1.1 Development milestones of VNP Group (2006 – 2021) Table 2.1 The contractual control coordination process 19 Table 2.2 The operation control coordination process 22 LIST OF PICTURES Picture 2.1 The ERP account of employee 25 Picture 2.2 The reporting function of ERP system 26 Picture 2.3 The function of storing customers’ information and transactions 27 Picture 2.4 The function of storing accouting information on ERP 27 vii INTRODUCTION Rationales of the research In the era of integration and globalization, businesses need to have more and more innovation in strategy and operational objectives to meet all requirements of economic development all over the world To survive and develop, business managers must pay attention to the performance of their businesses Having appeared for a long time, the term internal control was standardized since the COSO report in 1992 In Vietnam, the concept of internal control has become quite familiar to business managers Intending to control activities and survive effectively in the competitive business environment, more and more enterprises have implemented the internal control system The internal control system is an effective management tool for controlling and operating business activities to reach objectives with the highest efficiency Currently, information technology has an increasing impact on accounting information systems It is convenient for businesses to get the transparency of information On the other hand, information technology is also a challenge for companies in controlling and protecting their information system Therefore, companies need to improve internal control systems, which effected by electronic data processing Perfecting the internal control system helps enterprises to protect themselves against risks and seize development opportunities In the internship course at VNP Group Joint Stock Company, I got a concise overview of the internal control system and lots of practical experience Therefore, I chose “Discussion on the improvement of the internal control system at VNP Group Joint Stock Company” as the subject of my report After collecting and analyzing the internal control information of the company, I would like to propose some recommendations to improve the internal control system and the corporate governance of the company