Completing the audit of the item revenue from sales of merchandises and serviecs rendered in the financial statement audit at branch auditing and informatic

Along with the rapid development of science and technology today, the world economy is step by step going up strongly. Along with that development, Vietnams economy also has positive changes. An inevitable requirement is that businesses must disclose their financial position to create confidence for investors and take advantage of economic resources. Auditing, as a tool to check and control economic activities, has demonstrated its function in verifying the truthfulness and accuracy of financial information. In the financial statement audit process, information about revenue from sales of merchandises and services rendered particularly concerned about sales and service provision that contain many possible fraud risks and errors. Because of the importance of the revenue portion in the audit of financial statements, I chose the topic, “Completing the audit of revenue from sales of merchandises and services rendered in auditing financial statements at Branch Auditing and Informatics Services Company Limited in Da Nang (AISC)“ doing the research topic and write the graduation thesis.

THEORETICAL BASIS FOR THE AUDIT OF REVENUE

BASIC ISSUES RELATED TO REVENUE FROM SALES OF

1.1.1 General overview of the revenue from sales of merchandises and services rendered item

According to the accounting standard No.14 (VAS 14) "Revenue and other income" in the Vietnamese accounting standards system, "Revenue is the total value of economic benefits earned by the business in the accounting period, arising from normal production and business activities of the enterprise, contributing to the development of equity."

Revenue classification by content, revenue includes:

Revenue from sales of merchandises is the sales of products that an enterprise produces, sells goods purchased and sells investment properties. Revenue from services rendered is the revenue from performing works agreed upon under a contract in one or more accounting periods such as the provision of transport services, tourism, and the lease of fixed assets under the mode of operating lease moving.

Revenue from internal sales is the revenue of the number of products, goods and services consumed internally, is the economic benefit obtained from the internal sale of goods, products, and services among dependent accounting units in the same company, the corporation is calculated according to the internal selling price.

Revenue from financial activities is income from interests, royalties, dividends, distributed profits and other revenues from financial activities of the enterprise.

On the financial statements, Net revenue from sales of merchandises and services rendered is presented in item 1, Code 01 on income statement according to form B 02-DN (Issued under Circular 200/2014 / TT -BTC, December 22, 2014, of the Ministry of Finance), including revenue from sales of merchandises and services rendered, revenue deductions and net revenue. Accordingly, there are specific targets which are construed as follows:

- Revenue from sales of merchandises and services rendered: This is the indicator of sales and services rendered and internal revenue when shown on income statement Revenue from sales of merchandises and services rendered are the revenue earned from the sale of products produced by the enterprise, the sale of purchased goods and investment property including subsidies and subsidies that the enterprise inherit For enterprises that are subjected to value added tax by the deduction method, this enterprise does not include value added tax.

 Trade discount (5211): is the amount where a business sells off listed prices to customers who buy goods in large volume.

 Sales returned (5212): Is the value of sales volume determined as consumption returned by the customer and refused to pay.

 Sales discount (5213): Is a deduction for buyers due to poor quality, incorrect specifications or outdated tastes

- Net revenue from sales of merchandises and services rendered: this index reflects the sales of goods, finished goods and service provision minus deductions (trade discounts, sales discounts ) in the period report, as a basis for calculating the business results of the enterprise. financial source of the business, helping businesses pay costs incurred in production and business activities This is the financial source that determines the operation of the enterprise in the next accounting period.

 When businesses carry out sales on a regular basis, it will increase the capital flow rate, increase capital turnover Facilitating efficient use of capital, reducing costs of external borrowing for businesses.

 Is an important basis for determining business results in the period, helping enterprises to easily fulfill their obligations to the State.

 Increasing revenue means to increase the amount of money earned while increasing the number of goods sold, this shows that the business has created a certain position in the market In a sense, the increase in revenue means that the profits of the business also increase accordingly Therefore, it requires businesses to manage sales and provide services effectively.

1.1.1.5 How to make the item of revenue from sales of merchandises and services rendered on the financial statements

- Indirect taxes payable (Value-Added

Tax, Excise Tax, export tax,

- Transfer net revenue to 911 account

- Sales of products, goods, investment properties and services rendered by the enterprise in the accounting period

Account 511 does not have a closing balance

REVENUE FROM SALES OF MERCHANDISES AND SERVICES

1.2.1 Internals control for revenue from sales of merchandises and services rendered audits

The auditor uses the assessment of the internal control system of the customer and the audit risk assessment of revenue from sales of merchandises and services rendered to interview the client On that basis, make a conclusion about the entity's internal control system Inspection of internal control systems is recommended for use in the following cases:

• The control procedure is expected to be effective

• Basic testing procedures cannot reduce the risk of material misstatement to an acceptable level due to too many operations occurring, small value, or being controlled by the information technology system.

On the basis of the results of the sampling test, the auditor concludes that he believes in the tested primary control procedure? If you do not trust the internal control system, the auditor will have to perform a high level of basic inspection Conversely, the basic test can only be performed in the medium or low level.

1.2.2 Common risks and mistakes when auditing Revenue from sales of merchandises and services rendered

Revenue from sales of merchandises and services rendered is considered an important indicator to evaluate the business and production situation of the business Therefore, this indicator has many potential errors and frauds With the purpose of "beautifying" financial statements to attract investment capital of shareholders in the stock market, listed companies and businesses often use fraudulent techniques in preparing financial statements, specifically Common mistakes are as follows:

Revenue and income reflected in records and accounting report are higher than the actual revenue and income: revenue or income reflected on records is higher than the actual revenue. For example, the incorrect recognition of revenue in the following cases:

 Revenue counterfeiting: recording unrealistic revenue in records Forms of counterfeiting revenue such as making transactions with fake customers or making fake invoices with real customers but in fact goods and services are not delivered At the beginning of next year, the revenue was still reversed to conceal this fraud.

 Early recognition of revenue: when the revenue recognition conditions are not met, such as the goods have not been delivered to the customer or only partially delivered and the customer has not agreed to pay Or early revenue in the case of a sale contract with a term attached In fact, the terms of the contract are incomplete, and the rights and risks of ownership of the goods have not been transferred to the purchaser Many businesses, when exporting goods and services to customers for trial, have recorded revenue This form of revenue recognition is considered recognizing revenue at the wrong time when future contracts terms have not been fulfilled.

 Duplicate revenue and income accounting

 Wrongly calculated and recorded data increased revenue and income compared to the data reflected on the accounting vouchers.

 Revenue and income reflected in records and accounting report are lower than actual revenue and income:

This case is expressed specifically that the enterprise has not fully recognized the revenues and incomes in the business results in the period even though it meets the conditions to be determined as revenue or income as prescribed in the standard Or the amount of revenue or income reflected on the report is lower than the revenue on the arising accounting vouchers.

Example: An enterprise does not account for a lack of revenue in the following cases:

 The enterprise has made sales procedures and services rendered to the customer, the customer has paid or accepted the payment but the enterprise has not recorded the revenue Or have mistakenly booked revenue into another account.

 Revenue from financing activity and other income earned but the enterprise has not yet recorded or recorded to other accounts.

 The incorrectly calculated and recorded data has reduced revenue and income compared with the data reflected on the accounting vouchers.

CURRENTLY AUDITING THE REVENUE FROM SALES OF

G120 Working paper for Notes to the financial statements

G130 Audit program - revenue from sales of merchandises and services rendered

G141 Summary table of detailed business results

1.3.2 Audits content of Revenue from sales of merchandises and services rendered item

Ngày kết thúc kỳ kế toán:

Nội dung: CHƯƠNG TRÌNH KIỂM TOÁN - DTBH&CCDV

I MỤC TIÊU KIỂM TOÁN đã cung cấp được ghi nhận chính xác và phân loại phù hợp đầy đủ, Tính chính xác, phân loại

3 Đảm bảo giá trị doanh thu được phản ánh trên Báo cáo

KQHĐKD không bao gồm các khoản thuế gián thu (thuế xuất nhập khẩu, thuế tiêu thụ đặc biệt, thuế GTGT nộp theo phương pháp trực tiếp).

4 Đảm bảo toàn bộ các khoản giảm trừ doanh thu (chiết khấu thương mại, giảm giá hàng bán và hàng bán bị trả lại) được ghi nhận chính xác.

O, C, A/Tính hiện hữu, tính đầy đủ, tính chính xác

5 Đảm bảo doanh thu ghi nhận đúng kỳ Cut-off/ Đúng kỳ

6 Đảm bảo tất cả các thuyết minh cần thiết liên quan đến doanh thu bán hàng và cung cấp dịch vụ được lập chính xác và các thông tin này được trình bày và mô tả phù hợp trong BCTC.

P&D/Trình bày và thuyết minh

II RỦI RO Ở CẤP ĐỘ CƠ SỞ DẪN LIỆU

Từ kết quả của phần lập kế hoạch [tham chiếu các giấy làm việc tại phần A800], xác định mức độ rủi ro theo từng cơ sở dẫn liệu của khoản mục (chi tiết theo TK được kiểm tra của khoản mục) vào bảng dưới đây :

Cơ sở dẫn liệu O/Tính hiện hữu

A/Tính chính xác off/Đúng Cut- kỳ

P&D/Trình bày và thuyết minh

Rủi ro ở cấp độ cơ sở dẫn liệu

III XEM XÉT BIỆN PHÁP XỬ LÝ KIỂM TOÁN

III.1 Rủi ro có sai sót trọng yếu của khoản mục

Rủi ro có sai sót trọng yếu của khoản mục và biện pháp xử lý kiểm toán đề xuất được lấy từ các giấy làm việc tại phần A800 Nếu phát hiện các rủi ro có sai sót trọng yếu khác trong quá trình kiểm toán, KTV cần cập nhật các giấy làm việc tại phần A800 và bảng này:

Các rủi ro có sai sót trọng yếu Cơ sở dẫn liệu bị ảnh hưởng Ghi thủ tục kiểm toán (*)

(*) Lưu ý: Đối với các rủi ro cụ thể như rủi ro đáng kể, rủi ro gian lận,… KTV phải thiết kế các thủ tục phù hợp để xử lý các rủi ro cụ thể này bằng cách sửa đổi các thủ tục nêu tại mục III.2 hoặc bổ sung thủ tục ngoài các thủ tục nêu tại mục III.2 (KTV có thể tham khảo thư viện các thủ tục kiểm toán bổ sung trong CTKTM - BCTC 2019).

III.2 Thử nghiệm cơ bản (áp dụng cho tất cả các nhóm giao dịch, số dư TK và thông tin thuyết minh trọng yếu)

Lưu ý: Đối với thử nghiệm cơ bản, xem xét các câu hỏi gợi ý dưới đây (bao gồm nhưng không giới hạn) để thiết kế, lựa chọn các thủ tục kiểm toán thích hợp khi trả lời “Có” Khi đó KTV sẽ xem xét lựa chọn, sửa đổi/bổ sung hoặc loại bỏ các thủ tục kiểm toán tương ứng với bước đó tại CTKiT

 Giá trị của khoản mục này có trọng yếu (Giá trị khoản mục lớn hơn mức trọng yếu thực hiện) hoặc dự kiến là trọng yếu tại ngày kết thúc kỳ kế toán không?

 Có các loại doanh thu khác nhau được ghi nhận theo chính sách ghi nhận doanh thu khác nhau không?

 Có hợp đồng nào với nhiều nghĩa vụ thực hiện không?

 Có các ước tính và xét đoán quan trọng nào được yêu cầu trong ghi nhận nhận doanh thu trong kỳ không?

 Giá trị của khoản mục này có trọng yếu (Giá trị khoản mục lớn hơn mức trọng yếu thực hiện) hoặc dự kiến là trọng yếu tại ngày kết thúc kỳ kế toán không?

 Có các giao dịch trọng yếu với bên liên quan trọng yếu không?

 Có sẵn những thông tin phù hợp và tin cậy để cho KTV xây dựng ước tính giá trị doanh thu kỳ vọng và so sánh với giá trị doanh thu đã ghi nhận không?

 Có những giao dịch bằng tiền mặt lớn không?

 Có phát sinh sai sót trọng yếu liên quan đến tính đúng kỳ được dự kiến tại ngày kết thúc kỳ kế toán không?

 Có bất kỳ sự không tuân thủ nào khuôn khổ lập và trình bày BCTC được áp dụng trong các kỳ trước không?

 Có bất kỳ thay đổi nào trong các chính sách kế toán trong kỳ không?

 Có các ước tính và xét đoán quan trọng nào được yêu cầu trong ghi nhận nhận doanh thu trong kỳ không?

IV KẾT LUẬN LẬP KẾ HOẠCH

Theo ý kiến của tôi, từ các thủ tục được lập kế hoạch, các bằng chứng kiểm toán đầy đủ và thích hợp có thể được thu thập để đạt được các mục tiêu kiểm toán.

Người lập: Người soát xét 1:

Thử nghiệm cơ bản (áp dụng cho tất cả các nhóm giao dịch, số dư TK và thông tin thuyết minh trọng yếu)

Ghi chú: Khi lựa chọn thực hiện các bước B, C, D, E, F, G, K nêu trên, KTV phải thực hiện các thủ tục cụ thể (nếu phù hợp) nêu tại từng bước tương ứng của tờ CTKiT

- Loại bỏ các thủ tục kiểm toán không cần thiết và bổ sung các thủ tục kiểm toán khác theo yêu cầu thực tế của đơn vị được kiểm toán để xử lý rủi ro cụ thể.

Xử lý cơ sở dẫn liệu

Tham chiếu giấy làm việc

Có thỏa mãn với kết quả không?

Chữ ký và ngày thực hiện

Kiểm tra chính sách kế toán có áp dụng nhất quán với năm trước và phù hợp với khuôn khổ về lập và trình bày BCTC được áp dụng không

Trường hợp có thay đổi chính sách kế toán đơn vị có tuân thủ theo hướng dẫn của [CMKT số 29] không

Thu thập phân tích về doanh thu bán hàng và cung cấp dịch vụ

1 Lập bảng tổng hợp số liệu dựa trên sổ cái

TK doanh thu của kỳ hiện tại và BCTC kỳ trước đã được kiểm toán với chi tiết doanh thu bán hàng và cung cấp dịch vụ, doanh thu chịu thuế và lợi nhuận gộp

2 Thu thập danh sách chi tiết doanh thu của khách hàng và đối chiếu với bảng tổng hợp số liệu nêu trên.

Thực hiện thủ tục phân tích

3 Thực hiện thủ tục phân tích như sau:

(a) So sánh doanh thu bán hàng và doanh thu hàng bán bị trả lại, tỷ lệ các khoản mục giảm trừ doanh thu trên tổng doanh thu giữa năm nay với năm trước, giải thích những biến động bất thường và đánh giá rủi ro có sai sót trọng yếu do gian lận;

(b) Phân tích sự biến động của tổng doanh thu, doanh thu theo từng loại hoạt động giữa năm nay với năm trước, giải thích những biến động bất thường và đánh giá rủi ro có sai sót trọng yếu do gian lận;

AUDITING SITUATION OF REVENUE FROM SALES

The formation and development process of Branch Auditing and Informatics26 2.1.3 Operational objective, strategic vision of the company

Services Company Limited in Da Nang

Branch Auditing and Informatics Services Company Limited in DaNang (AISC) is a large-scale, legal independent auditing and consulting organization all over Vietnam AISC's headquarter is located in Ho Chi Minh companies operating in the field of independent audit, financial consulting, accounting and informatics;

In November 2007, the People's Committee of Ho Chi Minh City approved the plan to convert Ho Chi Minh City Auditing and Service Company into Ho Chi Minh City Auditing and Informatics Services Co., Ltd; June 2000: AISC was also one of the first independents auditing firms to be authorized by the State Securities Commission to audit security issuers and traders;s

From 2009 to present: Member of Vietnam Association of Certified Public Accountants (VACPA);

AISC is one of the first independents auditing firms to be authorized by the State Bank to audit credit institutions and commercial banks in Vietnam. AISC operates on the principles of independence, objectivity, integrity, protecting the interests and business secrets of customers as their own interests on the basis of compliance with the law Principle of professional ethics, quality of services provided always strive to exceed customers' expectations and the Company's reputation are the top standards that all AISC employees always remember and adhere to.

2.1.3 Operational objective, strategic vision of the company

AISC's operational objectives are to help customers and those interested in protecting their legal rights; providing practical information and optimal solutions for corporate governance and administration.

Building AISC into one of the specialized service providers in auditing and finance in Vietnam is a strategic goal of AISC With a team of capable and enthusiastic leaders, AISC commits to make maximum efforts to bring customers true values in each service provided by AISC AISC is taking steady steps to develop a reputable and quality brand; best meet the trust and expectation of customers in service transactions with AISC.

In addition, AISC is always interested in building a modern working environment and corporate culture It is worthy of being the first choice for those who have the competencies and good ethics in developing talent and careers at AISC.

Types of services provided by the company

2.1.4.1 Auditing and ensuring: a Audited financial statements

Our Financial Statements audit department provides services that guarantee the results of operations and the financial position of the business.

In addition, we also support businesses to improve the quality of their external financial statements and comply with legal regulations including Vietnamese Accounting System, Vietnamese Accounting Standards and Standards International financial reporting ink (IFRS) We also assist clients in providing external non-financial information and help improve client's corporate governance processes.

 Auditing Financial Statements: is based on the standard Auditing Process of the Vietnam Association of Certified Public Accountants (VACPA) and is designed with a focus on key risk areas, based on business characteristics business of customers such as areas of activity, competitive pressure, inherent risks and corporate culture We also perform an audit of consolidated financial statements for large corporations and corporations.

 Review of Financial Information: We provide services that involve reviewing interim financial statements and reviewing past financial statements A review provides less assurance than an audit because review procedures are primarily limited to communicating with company employees and applying analytical procedures on financial information Depending on the

 Auditing of special jobs: Equity audit; Profit sharing spreadsheet audit; Audit of Receivables Summary Report; Auditing Financial statements are prepared in accordance with tax regulations to determine taxable income. b Basic construction audit

Our basic construction audit department provides audit services to project completion reports, checks the completeness and appropriateness of the accounting work, checks the correctness of the criteria on assets, money, and liabilities; legality of original documents, economic contracts and acceptance record.

 Examining and evaluating the legality of the Project and the compliance with investment and construction procedures:

- Gather, arrange and classify records and documents, check and compare the list, content of legal documents of the entire project.

- Examining the compliance with the State's regulations on capital construction investment order and procedures.

- Check the observance of the order and procedures for contractor selection in accordance with the provisions of the law on bidding.

-Check the legality of economic contracts between the Investor and contractors and other relevant entities.

 Check the investment capital of the project: Compare the allocated, loaned, and paid capital reported by the investor with the confirmation number of the funding, lending, and payment agency involved determining the actual investment capital.

- Comparing the work contents, volume (quantity) in the value sheet proposed for settlement of the investor or contractor with the work content, volume (quantity) in the test records completed.

- Comparing the unit price in the value calculation proposed for settlement of the investor or contractor with the unit price in the approved estimate to ensure compliance with State's norms and unit prices or with the principle of making rates and unit prices according to State's regulations.

- Thereby determining the settlement value of the work or bidding package performed by the investor (project management board) or by the contractor.

 Check that the cost of investment damage is not included in property value:

- Investment costs for damages caused by natural disasters, enemy sabotage and other force majeure reasons not covered by insurance coverage;

- Investment costs for the work volume are canceled under decisions of competent authorities.

 Checking the value of assets formed through investment::

- Check the number and value of assets according to 2 types: fixed assets and liquid assets; historical cost (unit price) of each group (type) of an asset according to actual costs and converted to the time of handover of the property to be put into production and use.

- Assessment of observance of state regulations on investment management, construction and bidding; investment cost management, investment assets management of investors; responsibilities of each level for the management of investment capital projects.

- Recommendations on settlement value and handling of related issues.

2.1.4.2 Valuation the ability to assess whether the opportunity or transaction the company is considering increases or decrease in corporate value.

That's reason why pricing is an important part of the decision-making process for mergers and acquisitions, tax structure, dispute resolution, corporate restructuring or financial reporting.

We have provided our clients with the following typical pricing scenarios:

Significant changes in Financial Reporting Standards have created a need for specific valuations, which demonstrate an understanding of the effects of accounting standards in particular circumstances, and the commercial context in which accounting standards are applied.

We provide valuation services to assist clients in determining the value of intangible assets as well as in determining fair values of financial assets and liabilities Some of the services we provide include,

- Valuation of financial assets & liabilities

- Stock valuation based on payments

- Independent consulting on transactions with related parties

In the event of a dispute, independent pricing can help resolve problems quickly We provide reliable and defensible reporting and defensible to support a customer's opinion and position in disputes and proceedings We also provide expert witnesses to support litigation.

This is one of our strengths with appraisal services for land use rights, basic construction works

 Evaluate prices of machinery and equipment

With knowledge in many fields, we are ready to best meet the needs of customers in determining the value of modern specialized machinery, equipment, means of transport

We combine industry expertise, the best analytical tools with international experience and domestic practice, helping our clients achieve their goals in the best possible way Our team of experts will help customers navigate through the complex and discrete process, so that customers can solve all arising problems and make the right decisions.

- Consulting on corporate restructuring, conversion of types and equitation of state-owned enterprises;

- Consulting on buying, selling, leasing properties, enterprises, investment projects;

- Consulting on valuation according to market value and for transactions;

- Consulting on reorganization of investment and business activities of Groups, consulting on multi-disciplinary development orientation;

- Consulting on tender invitation, bid evaluation and selection of partners b Consulting on control system

In parallel with the growth and efficiency goals, the operation of the internal control system plays an important role in the sustainable development of an enterprise With a team of lawyers, consultants who are longtime experts in the fields of legal, financial, internal audit and independent audit, we provide consulting services on internal control systems. c Taxes consultant

The services we provide to our clients are diverse, including tax advice and regulatory compliance assistance related to profit tax, value added tax, foreign contractor tax and personal income tax We also provide import, export and pricing transfer services We regularly update our clients on the latest changes inVietnamese tax regulations and advise our clients on the most effective ways to organize their operations in Vietnam, as well as provide early warning and assistance in coping with risks.

Organization structure of AISC

Figure 2.1 : Organization structure at AISC

 Organization structure of AISC, Danang branch

Figure 2.2 : Organization structure of AISC, Danang branch

Administration Department: Checking and supervising financial operations, managing capital sources and recording all arising economic transactions, synthesizing financial statement data according to regulations.

Accounting Department: Meeting the requirements of accounting and administrative management of the company.

Enterprise Auditing Division: specializes in providing financial accounting and auditing services for businesses wishing to ensure the legal truthfulness of data on the Financial Statements and at the same time-serving as an advisory department for the Director Branches in the consolidation, enhancement and development of audit work.

Construction Project Auditing Division: auditing the investor's estimate and settlement of capital construction according to the technological process decided by the company.

Training-marketing department: making personnel policies, staff training policies Besides, making policies to introduce the company to businesses throughout the country.

Information technology room: consulting on the selection of informatics equipment, installing information systems in business administration, mainly informatics software.

Representative offices: operating relatively independently Branch directors are accountable to the general manager for the decisions and business performance of the branch.

STATUS OF AUDITING ON REVENUE FROM SALES OF

MERCHANDISES AND SERVICES RENDERED IN THE AUDITING

OF FINANCIAL STATEMENTS PERFORMED BY BRANCH AUDITING AND INFORMATICS SERVICES COMPANY LIMITED

2.2.1.1 Find out basic information of customers and operating environment

Preparing for an audit plan is the first step in the audit process This is an outreach process to collect information about customers to help auditors learn about their needs, evaluate service capacity and other issues such as implementation time, audit fees In there, if it agrees, the auditor will sign an audit contract with the customer This job is done through the following steps: Company introduction: Joint Stock Company X was established on 22/01/1976 The forerunner of Joint Stock Company X is a private establishment The main business lines of the company are manufacturing, supplying, importing and exporting products and materials in the plastic sector. Audit objectives: To collect understanding about customers and operating environment to identify and understand customers' events, transactions and business practices that have a material impact on financial statements, thereby helping auditors identify the risks of material misstatement due to fraud or error.

Implementation method: In order to learn about customers and operating environment, auditors often require enterprises to provide relevant documents and directly interview management to get the fastest and most reliable information about the business Besides, auditors must also understand the operating environment and external factors affecting the enterprise through information channels such as economic articles, information on State policies,

Practical illustration at joint-stock company X:

Plastic market: The demand for building materials plastic depends on the growth of the real estate market, the demand for housing as well as upgrading the electricity, water and telecommunications infrastructure systems inVietnam. the Company are Da Nang (51%), the Central provinces and the Central Highlands (49%).

In summary, the business of the unit depends on the real estate market or the need to upgrade the drainage system , so the business is usually not cyclical or seasonal.

The raw materials that account for the highest proportion in the product cost structure are mainly plastic resins (PVC, PP and HDPE) and Kraft paper.

- The Company applies the Vietnamese corporate accounting system under the guidance in Circular No 200/2014 / TT-BTC issued by the Ministry of Finance of Vietnam on December 22, 2014, replacing the joint accounting system Decision No 15/2006 / QD-BTC dated 20/3/2016 of the Minister of Finance and Circular No 244/2009 / TT-BTC dated 31/12/2009 of the Ministry of Finance.

- Legal regimes and regulations applicable to business types of enterprises: the company complies with and operates in accordance with the provisions of the enterprise law The company is a listed company, so it always complies with the regulations issued by the Securities Commission.

Profit tax: The unit applies according to Circular 78/2014 / TT-BTC dated August 2, 2014 and Circular 96/2015 / TT-BTC dated August 6, 2015. Environmental regulations affecting industries and businesses: Not available Comment: Auditors have done a good job in learning about customers to be able to devise the best audit strategy.

The preparation and discussion of audit contract terms are the legal basis for performing client service and collecting audit fees This work is done by the General Director of Branch Auditing and Informatics Services Company Limited in Da Nang (AISC) The contract after signing is assigned by the General Director to perform the contract for the appropriate professional departments and the chiefs are responsible for assigning the auditors to perform.

2.2.1.3 Description of the sales, receivables and collection cycle

Use narrative method to describe a cycle (Excerpt from working paper A410-Appendices B2)

Table 2.1 Description of the process of sales of merchandises and services rendered

Số TT Mô tả các nghiệp vụ chính của chu trình Thủ tục kiểm soát Người thực hiện Thẩm quyền phê duyệt

1 Nhận, xử lý đơn hàng và ký hợp đồng (bao gồm cả thủ tục đánh giá khách hàng có khả năng chi trả trước khi chấp nhận đơn hàng và ký hợp đồng, nếu có)

Phòng kinh doanh Trưởng phòng

KD Giám đốc Hợp đồng kinh tế

2 Bàn giao hàng hóa và dịch vụ Phòng điều độ Trưởng phòng điều độ Giám đốc Phiếu yêu cầu xuất kho

3 Xuất hóa đơn bán hàng, ghi nhận doanh thu và thời điểm chuyển giao quyền lợi và rủi ro liên quan đến hàng hóa và dịch vụ

Trưởng phòng KD Giám đốc Biên bản giao nhận hàng

4 Hàng hóa trả lại, giảm giá hàng bán Thủ quỹ/ kế toán ngân hàng

Kế toán trưởng Giám đốc Giấy báo có/PT

5 Thu tiền bán hàng, cung cấp dịch vụ Thủ quỹ/kế toán ngân hàng

Kế toán trưởng Giám đốc Giấy báo có/PT

7 Phải thu khó đòi (bao gồm cả việc đánh giá lại hạn mức tín dụng của khách hàng, nếu có)

Kế toán Kế toán trưởng Giám đốc Bảng tính lập dự phòng

8 Quy trình chăm sóc khách hàng sau bán hàng (bao gồm bảo hành, kiện tụng…), nếu có

Phòng kinh doanh Trưởng phòng KD Giám đốc

2.2.1.4 Preliminary analysis of financial statements through the income statement to detect fluctuations, identify and predict risks of fraud and error, then build up players procedures are necessary to find out those risks and errors.

Audit objectives: Auditors use analytical procedures to analyze a number of indicators on the financial statements, mainly balance sheet and Income Statement to detect changes in items this year compared to the previous year thereby identify and anticipate frauds and errors so that it can develop the necessary procedures to help find errors and frauds.

Implementation method: Auditors preliminary analysis of this year's financial statements compared to the previous year, explaining the big differences or the auditor doubting their reasonableness Analyze financial indicators, evaluate the financial situation.

2.2.1.5 Evaluation of the internal control system

According to the provisions and guidance of the Vietnamese Standards on Auditing No 315, the assessment of internal control at the enterprise level helps the auditor to identify the risks of material misstatement (especially the risk of fraud) From there, audit planning and defining the content, schedule and scope of subsequent audit procedures.

Enterprise levels internal control often has a wide-ranging influence on all aspects of corporate operations Therefore, internal control at the enterprise level sets the standard for other components of internal control A good understanding of internal control at the enterprise level will provide an important basis for evaluating internal control for critical business cycles The auditor uses his or her professional judgment to evaluate internal control at the enterprise level by interviewing, observing or examining documents This rating is limited to only three components of the internal control: (1) the control environment; (2) Risk assessment process; (3) Supervision of controls.

In fact, the organization of internal control for revenue from sales of merchandises and services rendered items for each business varies widely, depending on the size and characteristics of the operations of each business.

SOLUTIONS FOR COMPLETING THE AUDIT

JOINT STOCK COMPANY BY BRANCH AUDITING AND

General comment

Branch Auditing and Informatics Services Company Limited in Da Nang has constantly risen to develop both the quality and quantity of the auditor team The company has a highly qualified leadership team with a strategic vision to guide the company's development In addition, the company also has a team of auditors and audit assistants that are systematically trained, have high professional expertise, are enthusiastic, enthusiastic in their work.

During my internship at AISC, the company created favorable conditions for me to directly participate in the audits Through the process of practical contact, I have partly consolidated my learned knowledge and accumulated more experience for myself, at the same time, I have the following comments:

AISC's management boards are people with long-term experience and expertise in the field of auditing and management Moreover, creating a professional, friendly and united working environment In addition, the leaders also always provide the most complete facilities, and at the same time create

Regarding the audit process, the sequence of performing the steps of an audit at Branch Auditing and Informatics Services Company Limited in Da Nang demonstrates according to a general principle that is to learn about the customer, audit planning, audit contract, audit preparation, audit performing, audit closing, audit report and audit record keeping A very strict and careful implementation process is applied to all customers from contacting and understanding customers to issuing official audit reports The audit implementation processes of Branch Auditing and Informatics Services Company Limited in Da Nang took place in a systematic manner combined with the experience, the ability to judge the profession of a highly qualified auditor

 Science in working record storageAudit records

Audit records of Branch Auditing and Informatics Services Company Limited in Da Nang were presented, arranged scientifically and carefully preserved Audit records are documents made, classified, used and archived by the auditor during an audit The company also attaches great importance to the confidentiality of all customers' information and considers this as its motto of operation Thanks to that, the company's credibility and reliability have been improved day by day.

Each customer is stored in the company's software This helps the auditor to perform the audit as well as the Board of Directors and those who are not directly involved can still see the progress of the work performed by the auditor, thereby assessing the quality of the audit activity.

 Human resources is always an issue that the company pays special attention because it is always a factor contributing to asserting the position and reputation of the company Company with a staff of well-trained, solid professional knowledge The company regularly updates new legal documents related to the field of accounting and auditing to company employees Thanks to that, the auditors are always fully equipped with the most accurate and timely knowledge as well as information about the law.

 The Company always has a reasonably human resource assignment for audits Usually, an audit team will have 2 or more people depending on the customer's size For old customers, the company usually assigns at least one auditor who audited the previous year, which makes the audit easier because the last year's auditors will understand the client's situation and no need to re- learn much, saving time and money The key items are always audited by the main auditors and the related items are often combined for the audit to save time and effort It is the assignment and assignment in such an audit team that is a very important factor in bringing results in the audit.

 During the working process, there is always mutual help between the members of the delegation for everyone to develop together There is support in the work process to improve work efficiency All customers' questions about newly issued policies and regulations are answered by the auditor, contributing to the company's reputation.

Disadvantages 67 3.2 SOLUTIONS TO COMPLETE THE AUDITING PROCESS ON REVENUE FROM SALES OF MERCHANDISES AND SERVICES

Besides the advantages achieved, due to a number of subjective and objective reasons, the company still has the following shortcomings:

The number of customers of the company are increasing so the audit team is often pressured by the time to perform the audit as well as issuing the report The number of employees of the company are limited, so the number of members of each audit team are small, the members have to undertake many jobs, which may lead to the failure to control all audit risks.

The company's revenue audit mainly performed basic testing without paying much attention to evaluating the customer's internal control system.

SERVICES COMPANY LIMITED IN DA NANG.

Audit planning phase

3.2.1.1 Completing the sample audit program

 AISC's customers operating in many fields Each field has its own characteristics, so the application of an audit program will reduce the effectiveness of the audit, although the auditor has had audit experience in many fields Therefore, in the audit process a company should develop an audit program for each sector, such as an audit program for business construction, an audit program for commercial enterprises, auditing program for businesses with agricultural characteristics Redesigning their audit programs to suit the present time as well as more suitable for each type of business to improve the quality of the audit.

 Moreover, the auditing activities in Vietnam are still very young compared to the history of the world audit industry, so this activity is inexperienced, it cannot avoid the limitations on the theoretical perspective and reality Our auditing activities still have many problems, have not yet won a competitive advantage with foreign companies, the quality of auditing and consulting has not satisfied the users of financial information, awareness of the society on the audit is not completely proper and complete In addition, the legal framework for accounting and auditing activities is lacking and inconsistent, many regulations are not consistent, not consistent with international practices and standards For the best quality of audit is always guaranteed AISC should build a separate audit program, specifically for each customer audience.Specifically, separate working papers between 2 types of limited liability company and joint stock company This will reduce the hassle of old paper work in limited liability companies.

Achieved results: Limited time to think and apply audit procedures to suit the audited entity It is suitable for young auditors who are new to the profession who can perform the audit process easily and conveniently, but still ensure audit quality Test results will be more accurate and practical.

3.2.1.2 Regarding the customer's evaluation internal control system for revenue from sales of merchandises and services rendered item

When collecting customer information, auditors should interview through questionnaires or directly interview each rank from employees to management of the client company Since then, it helps to update the change of customer information more or less accurately and with high objectivity.

In the company's audit process, there will be a section to learn and evaluate the client's internal control system However, in reality, auditors rarely care about this, understanding the internal control system helps the company improve the quality to serve in the audit process, saving maximum time and effort of auditors both physically and mentally Therefore, the investigation of internal control system should be conducted more seriously and closely, it is necessary to interview customers and observe reality effectively.

X Joint Stock Company is a familiar customer of Branch Auditing and Informatics Services Company Limited in Da Nang , so the auditor needs to rely on key sources of information from previous years stored in the lake audit records As for new customers, the auditor should refer to the experience of the auditors who have performed the audit at the new client company It is a useful source of information to help auditors gather evidence of the operation of the internal control system.

Auditors should combine with questionnaires and flowcharts, narrative boards to learn the internal control system And the design of specific questionnaires based on each type, characteristics and business field of the enterprise should be conducted by experienced auditors and audited the previous year.

The company should approach customers through third parties, other companies in the same industry, in the same industry.

Achieved results: This makes auditors more visible in assessing "areas" with high risk of errors, to focus the tests to save time while ensuring audit quality Create the best conditions to capture important information and the bottom lines that the auditor suspects, increase audit procedures.

This creates a database for auditors to compare, identify high risks taking appropriate measures, and at the same time help to judge the appropriateness of accounting policies and assess the completeness sufficient, appropriate audit evidence.

Table 3.1 Evaluate the internal control system for revenue from sales of merchandises and services rendered item

1.The invoice is made on the basis of the economic contracts and shipping documents

Select the invoice template and see if there is a shipping document or economic contract attached.

2.The invoice is fully signed by related parties

Check that the signatures of related parties on the invoice are complete or not

3.Are sales deductions approved the authorized person?

Interview the authorized person for approval

Check for signs of approval on discounts (e.g., approval on sales returns)

1.Are sales invoices numbered before? Check continuity on invoices and shipping documents2.The minimum time for transferring Interview accountants, transferee documents to the accounting department for invoicing.

3.Goods published but not yet invoiced must be checked promptly

Interview accountants, storekeepers, sales staff

4.Vouchers and copies of invoices have been tracked and recorded

Observe the recording and follow-up

1.The selling price on the invoice is exactly the same as on the listed price list

Check if the price list is used correctly, approved signature on the price list

2.Changes in prices, sales deductions, discounts are approved

Interview the approver, check documents about the change, signature

1.The invoice is accompanied by goods delivery note, shipping documents, and contract

2.The amount of money on an invoice is recorded accurately and correctly with data on the accounting books

Compare invoices and accounting books

From the evaluation of the internal control system, the auditor can easily draw conclusions about the controls for the revenue item If the internal control system is judged feasible, the auditor may reduce basic testing,otherwise it is imperative that the auditor increases the tests.

Audit implementation phase

3.2.2.1 Use additional analytical procedures in revenue audits

In order to reduce the detailed inspection workload, it is necessary to carry out analytical procedures The essence of this procedure is to compare and study the relationship between financial information and non-financial information, to detect frauds, errors, changes in production and business activities of enterprises Instead of performing many detailed checking procedures, comparing documents, using analytical procedures saves time and

Once the estimated values have been calculated, the auditor will compare them with the bookkeeping value The difference between the estimated value and the carrying amount is used to assess the materiality of the account balance Acceptable difference represents the maximum acceptable difference between the auditor's estimate and the accounting's carrying amount Auditors use career judgment to determine acceptable differences, thereby identifying material differences To determine the acceptable difference, the auditor should consider the following factors

Materiality value: the lower the materiality value, the lower the acceptable value of difference.

Level of assurance: the higher the degree of assurance required, the smaller the difference that can be identified.

Accuracy of estimated data: if the auditor believes in his estimates, the lower the acceptable difference.

 Determine material difference and check material difference

When determining the difference, the auditor needs to consider and explain the difference logically If the difference is larger than the acceptable number, it is considered the material difference and should be checked again. The amount of material difference should be considered by the auditor as it is an indication that an error may exist in the balance to be examined In this case, it is necessary to identify and examine the nature and cause of such material difference Evidence obtained by the auditor to explain material differences should be specified by specific data.

The cause of the discrepancy can be due to the account balance or the type of operations being audited contains errors, and it can also be due to estimates in the analysis For the revenue item that directly affects the obligations of the business to the state, there are often many mistakes.

 Compare actual sales with planned sales

In every company, planning is important in regard to company survival and development The closer the estimation and planning to reality, the higher the ability to complete the plan, or in other words, the company will be able to better grasp and control the business activities business But the planning and estimation will also be pressure on the board of directors, auditors can also use this to evaluate actual revenue The construction of the estimate is always done in the assumption that the factors are stable and less volatile But in the actual implementation and production and business activities, customers always have to face many influencing factors, from objective factors to subjective factors of the economy The problem is that if the company's revenue without timely adjustment but the goal of the above business targets is still achieved, the auditor is required to reconsider the possibility of overstating revenue or the possibility of omission of the cost factor.

 Compare the gross profit rate with the auditor's estimate

The accounts above income statement, such as revenue and cost of goods sold, generally represent the accumulation of a series of similar operations over a period and the relationship between those accounts with indicators that are often predictable Gross profit is the result between revenue and cost of goods sold, so comparing profit targets between actual figures and auditor's estimated figure is a completely easy procedure.

It should be emphasized that comparing the gross profit rate of the customer with the estimated data built on the entity's financial figures and the industry average will provide the auditor with an overview of business performance of customers Normally, the client has an average position in the market and the gross profit rate of the customer is approximately equal to the industry average, so the auditor's estimates are always built close to this figure.

If the client's gross profit rate is much higher or lower than the auditor's estimate, unless there is a reasonable explanation, otherwise the gross profit

For a complete audit report, the company should:

Strengthening the review of audit records

By increasing the review with all items on the financial statements. However, depending on the characteristics of each customer, each item on the financial statements has different materiality, so auditors need to consider judging how many percentages of working papers should be made items.

Strengthen inspection of transactions arising after the accounting year Auditors combine many audit procedures such as interview, analysis, comparison to detect unrealized revenues carried forward in the period, as well as revenues recorded by the unit incorrectly accounting after making financial statements This work helps auditors check the timeliness and existence of the customer's revenue item.

3.3 SOME RECOMMENDATIONS FOR BRANCH AUDITING AND INFORMATICS SERVICES COMPANY LIMITED IN DA NANG

To complete the auditing activities at Branch Auditing and Informatics Services Company Limited in Da Nang in particular, in general auditing companies need to have efforts not only by the company but also from on the part of the functional agencies of the State.

The quality of the audits depends a lot on the legal documents - the legal basis of the audit When performing the audit, auditors need to comply with currently accepted auditing standards and accounting standards Therefore, in order to ensure the legal framework for auditing activities, the NationalAssembly has adopted Vietnamese auditing and accounting standards, and issued many relevant legal documents on auditing However, up to now, the legal document system is still in the stage of completion and has not met the operational needs of the current audit market Therefore, the authorities should pay more attention to audit activities to improve audit quality The State should have policies to encourage and expand the audit market further.

In particular, the State should support companies in training qualified auditors to improve their qualifications abroad.

On the side of Branch Auditing and Informatics Services Company Limited in Da Nang:

Branch Auditing and Informatics Services Company Limited in Da Nang has attracted a lot of customers in the past, but in order to be able to develop continuously, the company needs to improve the quality of services offering customers more Therefore, the company must have appropriate policies and measures in accordance with the current situation Measures the company can apply are the following:

The company should develop development policies, improve the qualifications of the company's auditors such as Employee recruitment policy, staff training policy,

Currently the company has built itself a unified audit program for the whole company However, to meet the future needs, the company needs to continue to improve and perfect that audit program.

Quickly deploy the company's development strategy, in line with the integration trend Strengthen audit quality control to attract customers, expand audit scope.

The company's current facilities are relatively good, but in order to further improve the quality of audits in the future, more investment is needed.

On the part of the staff themselves, especially the auditors, must self- cultivate not only their professional skills but also ethical qualities to make an important contribution to the overall development of the company.

The above is some comments and recommendations to complete the audit of sales and service provision in the audit of financial statements byBranch Auditing and Informatics Services Company Limited in Da Nang works for X joint stock company. play an important role in the financial reporting audit process to ensure that those interested in providing the most honest information about the financial situation of Enterprise Building a standard audit process is a factor that helps audit companies in general and Branch Auditing and Informatics Services Company Limited in Da Nang in particular to create their reputation in the market.

SOME RECOMMENDATIONS FOR BRANCH AUDITING AND