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Discussion on the improvement of the internal control system at vnp group joint stock company

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Tiêu đề Discussion on The Improvement of The Internal Control System at VNP Group Joint Stock Company
Tác giả Nguyen Nam Hai
Người hướng dẫn MSc. Nguyen Thanh Loan
Trường học Foreign Trade University
Chuyên ngành Accounting – Auditing with ACCA Orientation
Thể loại mid-term internship report
Năm xuất bản 2021
Thành phố Hanoi
Định dạng
Số trang 77
Dung lượng 2,17 MB

Cấu trúc

  • CHAPTER 1: OVERVIEW ABOUT VNP GROUP JOINT STOCK COMPANY (12)
    • 1.1. Overall information of VNP Group Joint Stock Company (12)
      • 1.1.1. The process of establishment and development of VNP Group Joint (12)
      • 1.1.2. The business lines (14)
      • 1.1.3. The organization structure (15)
    • 1.2. Overall about Internal Control Department (17)
      • 1.2.1. Duties of Internal Control Department (17)
      • 1.2.2. Rights of Internal Control Department (18)
  • CHAPTER 2: THE REALITY OF INTERNAL CONTROL SYSTEM AT (19)
    • 2.1. The control environment (19)
      • 2.1.1. Management’s philosophy and operating style (19)
      • 2.1.2. Organisational structure and assignment of responsibility (19)
      • 2.1.3. Human resource policies and practices (20)
      • 2.1.4. Internal Control Department (21)
    • 2.2. Control activities (21)
      • 2.2.1. Purchase and payment process (21)
      • 2.2.2. Sale and money collection process (24)
      • 2.2.3. Process of controlling the Bao Kim project's payment-intermediary (27)
    • 2.3. The information system relevant to financial reporting (34)
    • 2.4. Monitoring (37)
      • 2.4.1. The operational reporting process of departments (37)
      • 2.4.2. The periodic inspection process of the Internal Control Department . 30 (39)
  • CHAPTER 3: ASSESSMENT OF AND RECOMMENDATIONS (41)
    • 3.1. General assessment of the internal control system (41)
      • 3.1.1. The control environment (41)
      • 3.1.2. Control activities (41)
      • 3.1.3. Information and communication (41)
    • 3.2. Factors that threaten the effectiveness of the internal control system of (42)
      • 3.2.1. The control environment (42)
      • 3.2.2. Control activities (42)
      • 3.2.3. The information system relevant to financial reporting (43)
    • 3.4. Recommendations to improve the internal control system at VNP Group (44)
      • 3.4.1. The control environment (44)
      • 3.4.2. Improving solutions for control procedures (45)
      • 3.4.3. Completing solution for information system (46)
  • Picture 2.1. The ERP account of employee (0)
  • Picture 2.2. The reporting function of ERP system (0)
  • Picture 2.3. The function of storing customers’ information and transactions (0)
  • Picture 2.4. The function of storing accouting information on ERP (0)

Nội dung

Trang 1 FOREIGN TRADE UNIVERSITY FACULTY OF ACCOUNTING AND AUDITING ---***--- MID-TERM INTERNSHIP REPORTMajor: Accounting – Auditing with ACCA Orientation DISCUSSION ON THE IMPROVEMENT O

OVERVIEW ABOUT VNP GROUP JOINT STOCK COMPANY

Overall information of VNP Group Joint Stock Company

1.1.1 The process of establishment and development of VNP Group Joint Stock

VNP Group Joint Stock Company, established on August 21, 2006, is located at No 102, Thai Thinh Street, Trung Liet Ward, Dong Da District, Hanoi With over 15 years of growth, VNP Group has solidified its position as a leader in e-commerce and Internet communication The company has formed strategic partnerships with prominent Japanese investment groups, including CyberAgent Venture, Mitsui Financial Group, IDG Investment Fund from the US, and CAI of Japan.

Key development milestones of the company:

Table 1.1 Development milestones of VNP Group (2006 – 2021)

(Source: VNP Group Joint Stock Company)

Establishing VNP Group Joint Stock Company - Vietnam Price Joint Stock Company (VNP)

Starting to develop the website: www.vatgia.com

2007 Officially launching the website: www.vatgia.com

Receiving the IT Excellent E-Commerce Solution Award

Receiving the investment from venture fund IDG (International Data Group)

Receiving the Sao Khue award and reaching the top 20 according to Alexa ranking

2009 Launching vatgia.com on Mobile

Developing the payment gateway www.baokim.vn Reaching 300,000 users

Being ranked 15th according to Alexa ranking

Baokim.vn has officially launched its online payment gateway, providing a seamless transaction experience for users Additionally, the new website cucre.vn has been introduced, offering customers the best prices on a variety of products Furthermore, vatgia.com has integrated the baokim.vn payment system into its stores, enhancing the convenience of online shopping for its customers.

Receiving the investment from Mitsui

Launching home delivery service of www.nhanh.vn Launching tourism website: www.mytour.vn

Being ranked 10th according to Alexa ranking

Receiving investment from Recruit JV Developing a chain store of cucre.vn, the first two stores in Hanoi Reaching one million website users of vatgia.com

2015 Developing retail management software for other retail businesses

Running the WeSave project – a food and beauty center

Nhanh.vn launched a sales management software with Omni- Channel multi-channel solution

Establishing WeStay with the vision of becoming a housing service center in Vietnam

Splitting the WeStay into an independent project with VNP to raise capital for development

Selling Mytour – a project established by VNP Group in 2012 for Traveloka

Running the restaurant management software wepos.vn Launching the payment received on behalf feature of baokim.vn

Currently, VNP Group is operating with three main projects, corresponding to three subsidiaries:

VNP Group Joint Stock Company operates Vatgia.com, a leading e-commerce platform designed for online buying and selling This platform facilitates the exchange of goods and services, aiming to establish a trustworthy marketplace that connects buyers and sellers while offering a diverse range of quality products and services.

Bao Kim E-commerce Joint Stock Company operates Baokim.vn, an online payment gateway featuring an e-wallet model that securely stores user information and funds The platform is built on strong, sustainable partnerships with banks, ensuring reliable and efficient payment solutions for its users.

Baokim.vn supports almost all online payments for users in the simplest, fastest, and safest way

Implemented services: Collect on behalf, Pay on behalf, Payment Gateway, E- wallet, BaoKimplus, etc

Nhanh.vn Joint Stock Company offers comprehensive solutions for sales management, warehouse operations, account management, and professional report setup, enabling customers to save time, reduce costs, and optimize human resources With over 300 clients across various industries, Nhanh.vn is dedicated to meeting the diverse needs of its customers.

Implemented services: selling-management software, multi-channel sales management service, web-designing service, COD service, and management service for selling on Facebook pages

There are the following main components constructing VNP Group:

The General Director oversees all aspects of the enterprise, making key decisions regarding the services offered and formulating both short-term and long-term business strategies.

Deputy General Directors play a crucial role in assisting the General Director with company operations They are tasked with executing the overall strategic plan and ensuring that all activities align with the company's objectives, while also providing regular reports on progress and outcomes to the General Director.

The Finance and Accounting Department plays a crucial role in documenting transactions in accounting records and financial statements, enabling the assessment of profit and loss during the company's operating period Additionally, they provide management reports that assist the Board of Directors in making informed decisions.

- Administration - Human Resources Department is responsible for searching, recruiting, and training new employees Besides, they often monitor and manage the situation in the company

The Legislation Department is responsible for engaging in negotiations and finalizing contracts with business partners They evaluate draft agreements, cooperation contracts, and investment projects to ensure compliance with legal standards and the company charter, while also identifying any potential loopholes or legal errors that could harm the enterprise.

The Internal Control Department operates independently from other departments, focusing on the development of professional management guidelines and regulations for all company activities This department is responsible for creating processes that ensure compliance, integrity, and accuracy in management and operations across various projects.

Diagram 1.1 The management structure of VNP Group

(Source: VNP Group Joint Stock Company)

Deputy General Directors Back office

IT Department is responsible for conceptualizing and developing new services, and building websites and software for the enterprise's services

Sales Department has the duties of searching for potential customers, building sales policies, taking care of existing customers, and expanding customer files for the business

Marketing Department has the responsibility of identifying target customers, brand orientation, building and implementing product marketing plans

Accounting Department is responsible for recording transactions in accounting books and financial statements to determine profit and loss in the operating period of the project/subsidiaries.

Overall about Internal Control Department

1.2.1 Duties of Internal Control Department

- Internal Control is an independent department whose duties are examining and evaluating existing financial and operating activities within the company and making any necessary recommendations for revisions or additions

- Internal Control Department is liable for reviewing the economy, efficiency, and effectiveness of operations

- Internal Control Department has duties of reviewing compliance with external laws and regulations and internal policy and procedures

- Internal Control Department is responsible for ensuring the confidentiality of documents and information of the internal control department following the law and the company's internal regulations

1.2.2 Rights of Internal Control Department

- Right to request departments to provide fully and promptly all necessary information related to internal control processes

- Right to access and interview individuals, organizations, and units related to internal control processes

- Right to attend/request all information from meetings of all levels of management

- Right to request and monitor processes of correcting and improving problems that the internal control department has recognized and recommended

- Right to refuse to perform tasks that are not within the scope of the Internal Control Department.

THE REALITY OF INTERNAL CONTROL SYSTEM AT

The control environment

2.1.1 Management’s philosophy and operating style

Founded in 2006 and led by General Director Mr Nguyen Ngoc Diep, VNP Group utilizes ERP management software developed by Nhanh.vn to streamline all business operations and accounting processes The company's core value emphasizes understanding customer needs, aiming to exceed their expectations and create a "Happy shopping, happy - Efficiency business" online ecosystem that fosters wealth and pride among its members.

The company sets regulations on company culture and publishes it on the company website: culture in communication and behavior, culture in communication with customers/partners, working culture, meeting culture

Managers and employees always prioritize the handling of customer requests

The company regularly organizes training courses for new employees on professional expertise and company culture etc

The above activities have influenced the philosophy and operating style of managers They always put the company's value first in the operation process

2.1.2 Organisational structure and assignment of responsibility

The Diagram no 1.1 on page 7 illustrates the organizational structure of the VNP Group

The company is structured into smaller departments, each focused on specialized functional areas, with clearly defined regulations outlining employee authority and responsibilities This organizational framework mandates that departments submit internal reports and relevant information to the General Director, ensuring efficient business operations across the company.

Segregation of duties is implemented by assigning specific functions and tasks to each department, ensuring that responsibilities align with the professional capacities of individual members However, a notable issue arises in the Internal Control Department, where the Head also assumes the role of Deputy Director, overseeing senior human resources and information system administration.

2.1.3 Human resource policies and practices

The Human Resources Department collaborates with departmental heads to manage the recruitment and training processes for new employees All staff members are required to participate in training courses upon starting their roles or when their job responsibilities change These training sessions cover essential topics related to company culture, regulations, administrative procedures, and the specific duties and technical knowledge pertinent to their respective departments.

The company has developed comprehensive job descriptions for all roles, ensuring clarity in responsibilities Regular updates on remuneration policies are provided for each position across various departments, including specific guidelines for project directors (see Appendix 1) and detailed remuneration and KPI regulations for sales employees (refer to Appendices 2 and 3).

VNP Group has an internal control department that is independent of other departments in the company Operating principles of Internal Control Department are:

- Internal Control Department must be honest in monitoring and checking activities and not be in charge of managing other jobs in operating the enterprise

- Internally, members of the Internal Control Department must work and exchange information efficiently to find risks and create risk containment processes

When interacting with other departments, team members should maintain an enthusiastic attitude However, it is crucial to address any issues that violate regulations and could potentially harm the company with zero tolerance.

- Members must independently evaluate and express an opinion in the control report.

Control activities

The items of the purchase process are equipment, stationery, and services such as office rental, lunch service, cleaning service

2.2.1.1 Specific steps of purchase and payment process

Placing an order marks the initial phase of the purchasing and payment process Each department assesses its specific needs for items and services, leading department leaders to formulate a purchase plan, which requires approval from the direct executive director Once this approval is secured, departments can then proceed to place orders with suppliers.

Diagram 2.1 Purchase and payment process (Source: Accounting Department of VNP Group Joint Stock Company)

New suppliers must enter into a contract with the company, which typically outlines essential terms such as tax identification numbers, bank account details for both parties, delivery terms, payment methods, and the contract's validity period In contrast, for regular trading suppliers, the company simply issues a purchase order without the need for a signed contract.

Upon receiving an order or contract, the seller delivers the goods, which are then received by the designated departments The recipient verifies the delivery by comparing the receiving note with the supplier's invoice and the original purchase order.

The Accounting Department records item values in the receivable account based on invoices, receiving notes, and purchase orders When payments are due, accountants prepare payment vouchers to send to the cashier, who then manages cash payments or money transfers according to the agreement with the supplier.

2.2.1.2 Control procedures for purchasing and payment process

- Ordering policy: based on the using plan and the approval of the director to make orders

- Purchasing activities must have purchasing order and be approved by the director

- Segregation of duties among buyers, accountants, and cashiers

- When receiving goods and invoices from suppliers, the recipient reconciles them with the purchasing orders and signs the receiving note

- The Accounting Department has to compare the invoice, the receiving note, and the purchasing order before recording transactions and updating liabilities status with suppliers

- All expenditure transactions must be recorded into the accounting system first, then make a payment voucher or use money transfer

- Payment orders must be signed and approved by the CFO

2.2.2 Sale and money collection process

Diagram 2.2 shows the sales and money collection process of the VNP Group company

The process of transferring ownership of services and money involves several key steps: it begins with taking client orders, followed by delivering the services to clients, and concludes with recording receivables and collecting payments.

2.2.2.1 Specific steps of sale and moeny collection process

Once the sales department finalizes negotiations with the client, a contract is established, encompassing essential details such as tax identification numbers, bank account information for both buyer and seller, delivery terms, payment methods, the validity period of the contract, and additional terms and conditions.

The IT and OP Departments, together with the Sales Department, implement services under the contract

At the end of each month, the OP Department provides clients with a monthly service reconciliation report detailing the services utilized and associated fees Clients are required to review, sign, and return the report to the business Subsequently, the Sales Department forwards this reconciliation report to the Accounting Department for processing.

Diagram 2.2 Sale and money collection process (Source: Accounting Department of VNP Group Joint Stock Company)

- Updating customer debt and collecting money

In the Accounting Department, the accountant compares the reconciliation report with the contract before recording the debt and issuing an invoice to the client For cash payments, the accountant prints two receipt copies, which are then signed by the cashier after collecting the payment; one copy is given to the customer and the other is returned to the accountant The accountant subsequently updates the debt reduction and organizes the payment documents, including invoices, receipts, and the monthly service reconciliation report For bank payments, the accountant receives weekly bank statements to update the customer's debt, maintaining a document set that comprises invoices, monthly service reconciliation reports, and bank statements.

2.2.2.2 Control procedures for the cash collection cycle

- The company has developed processes of controlling the service-providing activities and payment to ensure the truth and fair of revenue recognitions

- The company separates the functions of service providing, accounting, and cashier

- Only sales transactions with contracts have invoices

- Paid invoices are stamped with a "Paid" symbol

The company has established robust processes to manage service delivery and payments, ensuring accurate and equitable revenue recognition Specifically, the payment-intermediary services of the Bao Kim project play a crucial role in enhancing the sales control mechanisms of VNP Group Detailed insights into these processes will be provided in the following section.

2.2.3 Process of controlling the Bao Kim project's payment-intermediary services 2.2.3.1 The contractual control coordination process

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Diagram 2.3 The contractual control coordination process

(Source: Internal Control Department of VNP Group Joint Stock Company)

Table 2.1 The contractual control coordination process (Source: Internal Control Department of VNP Group Joint Stock Company)

The Sales Department conducts negotiations with Partners, including sending contracts and documents to Partners as well as asking them to provide necessary documents according to service implementation requirements, including:

All documents must be notarized, valid for at least three months, and still valid

The Partner receives the request and prepares the cooperation file to send back to business

Records can be in scanned copies

At this step, it is possible to allow the partner to connect the parallel services

2 Checking documents The Sales Department conducts records checks If the profile is incomplete/incorrect, go back to step 1 If the profile is completed, go to step 3

Soft copy and scanned documents

3 Internal assessment for the documents of partner

The Sales Department completes the checklist, prepares relevant documents, and transfers them to departments:

- Legislation Department and Internal Control:

Contract control, appraisal of related documents: business registration certificate, business license, verification of information about partners' products and services

- IT: Business control, connection documents,

- OP: Controlling operations, reconciliation, and payment

At each department, if the requirements are not met or correct, go back to step 1 If all are satisfactory, move to step 4

Soft copy and scanned documents

4 Completing profile of partner The Sales Department conducts the procedures for signing the contract and sending it to the Partner

Partners complete and pack hard copy documents to send back to the Sales Department

The Sales Department checks all hardcopy records, if not enough/incorrect, go back to step 4 If they are completed, information will be transferred to IT at step

6 and information will be transferred to OP for inclusion in the operation plan

To prepare for the go-live service, the technician gathers necessary information, performs configuration tasks, and establishes a connection account within the IT system Once this process is finalized, the pertinent details are communicated back to the Sales Department, Operations, and Partners to facilitate the next steps in service implementation.

2.2.3.2 The operation control coordination process

Related departments control factors during the operation process Any issues relating to the termination of cooperation must be announced to the Sales Department and OP Deparment

Table 2.2 The operation control coordination process (Source: Internal Control Department of VNP Group Joint Stock Company)

Creating a tracking file of the Partner's profile Control the information in the record include:

- Validity period of notarized copies

- Term of Power of Attorney

If it expires/is about to expire, it is necessary to coordinate with the Partner to expand the expiration time

Controlling issues: Link application/product; Is the content of the application/product link correct with the description and content stated in the Contract?

- If true: Email confirmation to relevant departments in this process

Partners are required to review the official notice sent via email and must update the product content within a strict deadline of three days If the updates are not completed within this timeframe, the sales department will notify the relevant departments to halt the service and issue a formal notification to the partners.

Update IT system when Partners add written information

Controlling the valuation of transactions

Implement configuration to control transaction value on the system As soon as golive

Control transaction content by a technical system based on information in the contract Reject the transaction if the information does not match

Ensure that the system verifies the application link upon receiving information from the Partner via the connection API, confirming it aligns with the registered application link If there is a mismatch, reject the transaction.

Control the transaction IP according to the information registered in the Contract Reject the transaction if the information does not match

Control the origin of transaction money

To ensure accurate financial tracking, collaborate with bank account managers to update the source of transferred funds and request a scanned copy of the Payment Order from the Partner Note that any funds not originating from the registered account in the contract will not be credited to the system's balance Additionally, it is essential to inform the Business to facilitate proper handling of these transactions.

Report to the Central Bank

Make reports to the Central Bank under the provisions of the current Law for the field of operation

Make reports arising with special situations occurring such as:

- Need to consult when the Law is not clear

- When a Partner violates the control process

Updating the provisions of the Law

Update new regulations for Sales, IT, and OP Departments in order to promptly supplement and correct contents in cooperation and service control records

The information system relevant to financial reporting

The company uses the ERP management system developed by Nhanh.vn, so that the information system in the company is handled more quickly and easily

The standardization of administrative and human resource information through ERP systems enhances HR management and payroll functions, enabling HR executives to manage employees more effectively This approach not only optimizes the utilization of human resources but also significantly reduces errors and fraud in salary calculations.

Picture 2.1 The ERP account of employee (Source: VNP Group Joint Stock Company)

Collecting and accessing management information: ERP helps the business conveniently access reliable management information to make material business decisions

Picture 2.2 The reporting function of ERP system (Source: VNP Group Joint Stock Company)

An ERP system streamlines the storage of customer information by automatically archiving orders from the moment they are received until delivery and invoicing This functionality allows companies to conveniently track orders throughout the entire process.

Picture 2.3 The function of storing customers’ information and transactions

(Source: VNP Group Joint Stock Company)

The accounting module of ERP software provides precise financial data, enabling internal auditors and senior managers to verify the accuracy of transactions in each account Additionally, an effectively structured accounting management system enhances internal control and streamlines accounting processes.

Picture 2.4 The function of storing accouting information on ERP

(Source: VNP Group Joint Stock Company)

Monitoring

2.4.1 The operational reporting process of departments

The Internal Control Department conducts a monthly assessment of departmental activities, focusing on compliance with company regulations and evaluating performance The findings are compiled into a monthly report, which is detailed in Appendix 4 of this report.

There are three main parts of this process:

- Self-assessment: The departments self-assess their work performance in the period, then make statements to the internal control department

The Internal Control Department is responsible for synthesizing reports, conducting analyses, and issuing assessments Following this, they provide a preliminary statement to various departments and the Board of Directors Additionally, the department monitors and evaluates the performance results of the divisions to ensure effective oversight.

Performance evaluations are conducted to ensure departmental compliance with regulations and instructions If departments meet the required standards, the inspection process concludes; however, non-compliance necessitates a review and re-implementation until satisfactory results are achieved Ultimately, the Internal Control Department submits the examination findings to the Board of Directors.

Diagram 2.4 The operational reporting process of departments (Source: Internal Control Department of VNP Group Joint Stock Company)

2.4.2 The periodic inspection process of the Internal Control Department

Periodic inspections are conducted at the request of the Board of Directors to evaluate various operations, including client validity and the recruitment process For a detailed overview of the client validity inspection process, refer to Appendix 5 of this report, which provides a model report.

Steps of the periodic inspection process:

The Internal Control Department drafts a periodic inspection plan and submits it to the Board of Directors for approval Upon acceptance, the department notifies all relevant departments about the upcoming inspection.

The Internal Control Department will conduct inspections based on the established plan and subsequently inform each department of the results Upon approval of the findings, a comprehensive report detailing the inspection process and outcomes will be prepared by the Internal Control Department.

The testing results will be officially reported to the board of directors and relevant departments This report will guide the Board in formulating effective operational plans for the entire company, while departments will adjust their activities to optimize efficiency.

Diagram 2.5 The periodic inspection process of the Internal Control Department (Source: Internal Control Department of VNP Group Joint Stock Company)

ASSESSMENT OF AND RECOMMENDATIONS

General assessment of the internal control system

According to the survey, the management has an interest in the internal control system of the business

The ERP system utilized by the General Director highlights management's commitment to strengthening the internal control system, which significantly influences employees to adhere to the company's principles and regulations.

The company's business activities are monitored by software and computer systems This software is also a tool for managers to help the effectiveness of the internal control systems

Besides, with a suitable human resource policy, VNP Group has a relatively stable turnover with skilled staff However, the company has not a job rotation, leading to the risk of familiarity

In control activities, enterprises have built consistent business processes, accompanied by sets of documents and procedures to limit risks of fraud and errors

The survey indicates that the information system has equipped managers with reliable financial and internal management reports By implementing the ERP internal management system, the company can access essential data quickly and efficiently.

The internal email system and periodic meetings between managers and employees make the changes in operating informed to all employees instantaneously

However, at VNP Group, there are still some factors that threaten the effectiveness of the internal control system These factors will be discussed and analyzed in the 3.2 section.

Factors that threaten the effectiveness of the internal control system of

VNP Group Joint Stock Company

The lack of segregation of duties poses a significant risk to operational efficiency within the enterprise Firstly, the CFO's responsibility for the administrative information system raises the potential for capital misappropriation or embezzlement Secondly, the absence of an HR director, coupled with a limited human resources team of only three employees, necessitates that the head of the Internal Control Department assume HR responsibilities This overlap compromises the independence of the Internal Control Department in assessing recruitment and human resources processes.

In the purchasing process, the order employee also chooses the supplier, which can cause purchasing for their purposes or poor quality and high-priced goods

In a single department, order employees, receipt handlers, and item users collaborate, which can lead to discrepancies in order placements that do not reflect actual needs Consequently, staff may misuse excess items for personal purposes.

The delivery of documents between departments does not have any handover report Therefore, no person is responsible for the loss of documentary, which can harm accounting

3.2.2.2 Sale and money collection process

The company lacks a policy for managing credit lines with customers, and the Sales Department is uninformed about payment statuses from the Accounting Department, which does not handle debt collection This disconnect may lead the Sales Department to prioritize sales to customers who are unable to pay, ultimately harming overall operational performance.

Currently, the deposit of cash into the account is conducted by order of the CFO, without a specific schedule This deposit can cause misappropriation

3.2.3 The information system relevant to financial reporting

The ERP system currently lacks integration with existing accounting software such as MISA and AMIS, resulting in manual entry of revenue and expenditure transactions by accountants This manual process can lead to discrepancies between the ledger and the ERP system, as well as slow updates of accounting transactions, which negatively impacts the efficiency of the Internal Control Department in managing transaction oversight.

3.3 Reasons for threatens of the effectiveness of the internal control system at

VNP Group Joint Stock Company

Through investigation of the effectiveness of the system, the threatens of the efficiency of the internal control system at VNP Group come by the following reasons:

- Policy regulations for some operations are still not specific and clear

- VNP is a medium-sized company, so the non-segregation of duties is inevitable

ERP software faces significant limitations due to internal implementation challenges within companies Additionally, IT staff often lack opportunities for regular training, hindering their ability to enhance effectiveness and fully leverage the software's potential.

Recommendations to improve the internal control system at VNP Group

3.4.1.1 Establishing an appropriate organizational structure and segregation of duties

The company should implement the segregation of duties under two principles: delegation of authority and responsibility and separateness of functions

Effective delegation of authority and responsibility is crucial for organizational success Each department leader must be assigned specific operational responsibilities to ensure accountability When no one is designated for particular activities, they are often neglected, leading to negative impacts on the performance of other departments.

The VNP Group emphasizes the importance of assigning individual responsibilities alongside departmental leadership By delegating specific tasks to individuals, the organization fosters a greater sense of accountability, enhances work efficiency, and minimizes the likelihood of errors.

- The operation of the company is a combination of activities and jobs Therefore, it is necessary to determine the responsibility of coordinating work between departments and individuals

The principle of function separateness mandates that a company must allocate distinct tasks to different departments, ensuring that no individual or department is responsible for similar duties across all services.

3.4.1.2 HR policy and employee capacity

The company should implement additional policies that promote employee development by enhancing professional qualifications These initiatives could include financial support, dedicated study time, and rewards for employees who achieve outstanding academic results.

Coaching and training courses should be organized at flexible times so that all interested employees can attend

To ensure seamless operations and prevent disruptions during unexpected employee absences, it is essential to regularly rotate responsibilities among department members and across related departments.

3.4.2 Improving solutions for control procedures

- Make a list of reputable suppliers, specify the minimum value of the purchasing order with quotes from at least three suppliers

- The purchasing has to be made from at least two suppliers to avoid dependence on an only supplier

- There should be a department specializing in receiving goods ( such As the

Administration - Human Resources Department) to ensure the segregation of duties in the receiving process

3.4.2.2 Sale and money collection process

The company must establish a policy for customers with overdue balances, requiring the Sales Department to seek director approval before transitioning these clients to immediate payment terms.

- Transfer the responsibility of debt collection to the Sales Department to avoid selling for profit, affecting business performance

At the end of each day, the company must conduct a cash inventory to ensure accurate financial records The general accountant is responsible for compiling a list of daily receipts and payments, then reconciling the cash balance in the system with the actual funds on hand If discrepancies arise, it's essential to investigate the cause and seek guidance from an appropriate authority.

3.4.3 Completing solution for information system

- IT department should regularly get opinions from departments in the company to improve the ERP management system

- The company should focus on improving the capacity of the IT department through training courses

An effective internal control system is crucial for enterprises, as it not only supports auditors in their planning but also serves as a vital component of overall management By implementing a robust internal control framework, businesses can achieve their objectives and foster a high-performance work environment Consequently, it is essential for managers to understand how to establish and maintain an effective internal control system to enhance operational efficiency.

Following my internship at VNP Group Joint Stock Company, I have evaluated the internal control system and gathered insights from various references and articles on internal control activities Based on this analysis, I propose several recommendations to enhance the effectiveness of the current internal control system.

With my limited knowledge and research capabilities, I can only offer insights on cost-effective control environments and activities As the economy evolves in the coming year, it is crucial to further study and enhance internal control systems, as they serve as vital tools for managers in organizations.

I would like to express my gratitude to Ms Nguyen Thi Thanh Loan for her invaluable guidance in completing this report I look forward to receiving feedback and suggestions from teachers to enhance this research further.

1 BBP Learning Media, 2020, Audit and Assuarance Study Text for exams in September 2019, December 2019, March 2020 and June 2020

2 Committee Of Sponsoring Organizations of the Treadway Commission, 1992,

3 COSO (Committee of Sponsoring Organizations of the Treadway Commission),

Framework Draft for Public Exposure, www.ic.coso.org

4 Ministry of Finance, 2000, Modern Internal Audit, Financial Publishing House

5 Nguyen Huu Thong, 2002, Recommendations to develop small and medium enterprises in Ho Chi Minh City from now to 2010

6 University of Economics Ho Chi Minh City, 2007, Auditing, Social Labor

7 Vu Huu Duc, Nguyen Phan Quang, Diep Quoc Huy, 1999, Internal Audit - Concepts and Procedures, Statistical Publishing House

8 Relevance documents of VNP Group Joint Stock Company

APPENDIX 1: Job Description of Project Directors 41APPENDIX 2: Remuneration Regulations for Sale Department 46APPENDIX 3: Remuneration Regulations for Sale Department 50APPENDIX 4: Monthly report of the Internal Control Department 53APPENDIX 5: Report about the inspection process on the validity of clients 61APPENDIX 6: Summary of the Internship course 65

APPENDIX 1: Job Description of Project Directors

(Source: Administration – HR Department of VNP Group Joint Stock Company)

BẢN MÔ TẢ CÔNG VIỆC Chức danh công việc: Trưởng dự án Cấp quản lý phía trên trực tiếp: Nguyễn Ngọc Điệp (Chủ tịch HĐQT)

Dự án: Cổng thanh toán & ví điện tử Bảo Kim và Thu hộ -

Cấp quản lý phía dưới trực tiếp: Tất cả nhân sự trực thuộc Dự án

GIỚI THIỆU VỀ PHÒNG BAN/DỰ ÁN

Cổng thanh toán và ví điện tử của Công ty cổ phần thương mại điện tử Bảo Kim là dự án nhằm kết nối người mua và người bán, giúp quá trình thanh toán trở nên dễ dàng và thuận tiện hơn.

Theo dõi, điều phối và kiểm soát các hoạt động của Dự án là cần thiết để đảm bảo thực hiện đúng kế hoạch đã được phê duyệt và tuân thủ các quy định pháp luật hiện hành.

Phát triển và quản lý hiệu quả các vấn đề và hoạt động của dự án, bao gồm nhân sự, sản phẩm, doanh thu và tối ưu chi phí, nhằm nâng cao lợi nhuận trong hoạt động sản xuất kinh doanh.

1 Phát triển sản phẩm hệ thống cổng thanh toán Bảo Kim

1.1 Xây dựng chiến lược, và định hướng phát triển cho các sản phẩm cũ và mới của Dự án

- Thu thập thông tin về đối thủ, khách hàng qua các thống kê được công bố, sale, qua group, page, qua site của đối thủ

- Phân tích về thị trường, đối thủ, và khách hàng

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