COMPLETING THE AUDITING OF BUSINESS ADMINISTRATIVE EXPENSES IN AUDITING FINANCIAL STATEMENTS BY AUDITING AND INFORMATIC SERVICES COMPANY LIMITED OF HO CHI MINH CITY (AISC) DA NANG BRANCH FOR ABC JOINT[.]
DUY TAN UNIVERSITY INTERNATIONAL SCHOOL TRAN THI NHU QUYNH COMPLETING THE AUDITING OF ADMINISTRATIVE EXPENSES IN AUDITING FINANCIAL STATEMENTS BY BRANCH OF AUDITING & INFORMATICS SERVICES COMPANY LIMITED IN DA NANG (AISC) FOR ABC JOINT STOCK COMPANY UNDERGRADUATE THESIS ACCOUNTING AND AUDITING Da Nang, 2021 DUY TAN UNIVERSITY INTERNATIONAL SCHOOL UNDERGRADUATE THESIS COMPLETING THE AUDITING OF ADMINISTRATIVE EXPENSES IN AUDITING FINANCIAL STATEMENTS BY BRANCH OF AUDITING & INFORMATICS SERVICES COMPANY LIMITED IN DA NANG (AISC) FOR ABC JOINT STOCK COMPANY SPECIALIZATION: ACCOUNTING AND AUDITING INSTRUCTORS : ASSOC PROF PHD PHAN THANH HAI STUDENT : TRAN THI NHU QUYNH CLASS : K23PSU KKT1 STUDENT CODE : 2320253527 Da Nang, 2021 ACKNOWLEDGEMENT I also sincerely thank Assoc Prof PhD Phan Thanh Hai for helping a lot in completing the graduation thesis in the best way, thank you, the staff and employees of the Branch of Auditing and Informatics Services Company Limited in Da Nang (AISC) has created many opportunities to experience practical, accumulate more experience We would like to wish the teachers and the staff and employees of the Branch of Auditing and Informatics Services Company Limited in Da Nang (AISC) good health and success at work Wish your company business more and more efficient Thank you sincerely Da Nang, 2021 Student (Signature and Full name) Tran Thi Nhu Quynh TABLE OF CONTENT TABLE OF ABBREVIATIONS LIST OF TABLES LIST OF DIAGRAM ABSTRACT INTRODUCTION CHAPTER THEORETICAL BASIS FOR AUDIT ADMINISTRATIVE EXPENSES IN AUDITING FINANCIAL STATEMENTS UNDER THE SAMPLE AUDIT PROGRAM PROVIDED BY VACPA 1.1 BASIC ISSUES RELATED TO ADMINISTRATIVE EXPENSE 1.1.1 An overview of the administrative expenses 1.2 ADMINISTRATION EXPENSES ON AUDITING FINANCIAL STATEMENTS11 1.2.1 Administrative expenses audit goal 11 1.2.2 Internal control for administrative expense 12 1.2.3 Common risks and mistakes when auditing administrative expenses 12 1.2.4 Administrative Expense audit process in Financial Statement 13 1.3 IMPLEMENTING ADMINISTRATIVE EXPENSE AUDIT UNDER VIETNAM STANDARDS ON AUDITING VACPA 14 1.3.1 Profile index 14 1.3.2 Content audit administrative expenses items 14 CHAPTER AUDIT STATUS OF THE ADMINISTRATION EXPENSE IN THE FINANCIAL STATEMENT AUDIT PERFORMED BY BRANCH OF AUDITING & INFORMATICS SERVICES COMPANY LIMITED IN DA NANG (AISC) 23 2.1 AN OVERVIEW OF BRANCH OF AUDITING & INFORMATICS SERVICES COMPANY LIMITED IN DA NANG (AISC) 23 2.1.1 History of formation and development 23 2.1.2 The field of operation 25 2.1.3 Organizational Structure 31 2.1.4 Customer policy of AISC 35 2.2 STATUS OF AUDITING ADMINISTRATIVE EXPENSES IN AUDITING FINANCIAL STATEMENTS BY AISC 35 2.2.1 Audit Planning 35 2.2.2 Audit Performing 43 2.2.3 Audit Ending 56 CHAPTER A SOLUTION TO COMPLETE THE ADMINISTRATIVE EXPENSES IN FINANCIAL STATEMENT AUDIT IS IMPLEMENTED BY BRANCH OF AUDITING & INFORMATICS SERVICES COMPANY LIMITED IN DA NANG 59 3.1 GENERAL ASSESSMENT ON BRANCH OF AUDITING & INFORMATICS SERVICES COMPANY LIMITED IN DA NANG (AISC) 59 3.1.1 Advantages 59 3.1.2 Disadvantages 60 3.2 COMMENTS ON THE AUDITING OF ADMINISTRATIVE EXPENSES AT ABC JOINT STOCK COMPANY 60 3.2.1 Advantages 61 3.2.2 Disadvantages 63 3.3 SOLUTIONS TO RECOMMEND TO COMPLETE THE AUDITING OF ADMINISTRATIVE EXPENSES IN AUDITING FINANCIAL STATEMENTS 64 3.3.1 Some solutions to complete the general situation of AISC 64 3.3.2 Some recommendations to complete the auditing Administrative Expenses 65 CONCLUSION 79 LIST OF BIBLIOGRAPHY LIST OF APPENDICES TABLE OF ABBREVIATIONS AISC Auditing and Informatic Services Company Limited VACPA Vietnam Asociation of Certified Public Accountants VSA Vietnam Standards on Auditing MANAGEMENT ASSERTIONS A = Accuracy C = Completeness Classification = Classification E = Existence O = Occurrence P&D = Presentation and Disclosure R&O = Right and Obligation V = Valuation LIST OF TABLES Number Table Name Page 2.1 Materiality assessment 38 2.2 Determination of sample distance 39 3.1 Reference about research the internal control system 66 3.2 Comparison of old and new VACPA sample auditing programs (account 642) 67 3.3 New audit program form 69 3.4 New G450 working paper 73 LIST OF DIAGRAM Number Diagram Name Page 1.1 The T of Account 642 10 1.2 Audit process 13 2.1 Organizational structure of AISC 32 2.2 Organizational structure of Da Nang Branch 33 ABSTRACT In financial information, administrative expenses are highly sensitive indicators that important role in the company's income statement affecting the profitability and corporate income tax, and some other indicators on the financial statement Therefore, the process of auditing on selling and administrative expenses is necessary I chose this topic to understand more about the auditing on the selling expenses and administrative expenses, specifically performed by the Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC) The thesis consists of three chapters: Chapter 1: Theoretical basis for administrative expenses in auditing financial statements under the sample audit program provided by VACPA This chapter focused on the following issue: learning about item administrative expenses in a financial statement; process auditing on administrative in the audit of the financial statements Chapter 2: Audit reality of administrative expenses in the financial statement audit performed by Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC) Research the following issues: learn about Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC), process auditing for administrative expenses in financial statements audit performed by Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC) for customer ABC in 2020 Chapter 3: A solution to complete administrative expenses in financial statement audit is implemented by the Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC) Although the process auditing of the administrative expenses has many advantages, there are many disadvantages Therefore, I would like to make some suggestions for AISC to complete the process auditing of the administrative expenses in the audit of the financial statements INTRODUCTION Since its inception until today, the audit industry has grown rapidly in Vietnam, contributing to making the financial information of the business available to its users accurate and transparency, serving the general interests of users inside and outside the business As a part of the economy, the formation and development of the market for accounting and auditing services are both objective inevitable; both are an important component of the system of macroeconomic - financial management tools and play an active role in socio-economic development Stemming from such essential benefits of accounting and auditing services, in recent years, auditing activities in general and independent auditing activities, in particular, have not stopped improving and developing, and asserted their firm position in the region and the world That is the indispensable development trend of an innovative economy and is on the rise like our country in the current period Auditing of financial statements is a combination of the results of the various operations and cycles, from the audit planning stage to the end of the audit and report release For the majority of companies these days, the administrative expense is a very important part of the administrative This is a material item, directly affecting the revenue and profit of the company, thereby falsifying the data presented on the financial statements, affecting the decisions of users Therefore, the audit of administrative expenses is extremely important in every audit of the financial statements at the enterprise Recognizing the importance of the item of corporate administrative expenses in auditing financial statements and through the knowledge and experience accumulated in the process of studying and training at the University as well as the internship at Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC), I chose the topic: “Completing The Auditing of Business Administrative Expenses in Auditing Financial Statements by Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC) for ABC Joint Stock Company” The content of the thesis consists of main chapters as follows: Chapter 1: Theoretical basis for Administrative Expenses in auditing financial statements under the sample audit program provided by VACPA Chapter 2: Audit reality of Administrative Expenses in the financial statement audit performed by Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC) Chapter 3: A solution to complete Administrative Expenses in financial statement audit is implemented by the Branch of Auditing & Informatics Services Company Limited in Da Nang (AISC)