Auditing For Prepaid Expense Item In Financial Statements At Moore Aisc Auditing And Informatics Services Company Limited Da Nang Branch For Customer Xyz.docx

Hoang Anh Thu, I chosethe topic for my graduation thesis: "Auditing of Prepaid expenses in financial statements audit at Moore AISC Auditing and Informatics services companylimited Da Na

LITERATURE REVIEW OF AUDITING OF PREPAID

GENERAL OVERVIEW OF PREPAID EXPENSES ITEMS IN THE

FINANCIAL STATEMENT AUDITING 1.1.1 The concept and characteristics of prepaid expenses

The concept of prepaid expenses: Prepaid expenses are actual expenses that have been incurred but have not yet been calculated and production business expenses during the period will be allocated to many different accounting periods The reason this spending has not been included in business expenses for the period is because this spending has not created benefits for that period and this spending will create benefits for many periods Therefore, according to the matching principle in accounting and according to the concept of assets, prepaid expenses are considered assets, not expense [ CITATION Hươ14 \l 1033 ]

Standard for recognition of prepaid expenses:

- According to the matching principle in accounting and according to the concept of assets, prepaid expenses are considered assets.

- Assets paid for and recorded before a company uses them.

- Involved in many different accounting periods.

Prepaid expenses classified by the form of manifestation have 02 types: Short- term prepaid expenses and Long-term prepaid expenses

Short-term prepaid expenses are actual expenses that have been incurred, but are related to production and business activities of many accounting periods in a fiscal year or one business cycle, so they cannot be included in production and business expenses in the incurred period but are included in the next two or more accounting periods That are allocated within 12 months or a business cycle are short-term prepaid expenses.

Short-term prepaid expenses are divided into the following categories:

+ Prepaid expenses for renting shops, factories, warehouses, offices for a financial year or a business cycle

+ Cost of purchasing various types of insurance (Fire and explosion insurance, vehicle owner civil liability insurance, vehicle body insurance ) and other fees purchased and paid once a year.

+ Prepaid costs for renting services to provide business activities for a financial year or a business cycle

+ Tools and instruments belonging to short-term assets produced for one-time use with great value and tools and instruments with a useful life of less than one year.

+ Value of circulating packaging and rental equipment with a maximum term of one financial year or one business cycle.

+ Fixed asset repair costs incurred once are too large and need to be allocated to many accounting periods (months, quarters) within a fiscal year or a business cycle.

+ The cost of purchasing technical documents and other short-term prepaid expenses are gradually allocated to business expenses over a financial year or business cycle.

+ Expenses during work stoppage (Unforeseeable).

+ Other short-term prepaid expenses (such as prepaid loan interest, deferred purchase interest, installment payments, ) [ CITATION Hươ14 \l 1033 ]

Long-term prepaid expenses are expenses that have already been incurred but are related to the results of production and business activities of many accounting periods and the transfer of these expenses into the production and business expenses of the company the following accounting years That are allocated more than 12 months or more than one business cycle are long-term prepaid expenses.

Long-term prepaid expenses include:

+ Prepaid expenses for operating lease of fixed assets (land use rights, factories, warehouses, offices, stores and other fixed assets) serving production and business for many financial years.

+ Prepaid expenses serving business activities for many fiscal years.

+ Business establishment costs, training and advertising costs incurred in the pre- operational period are allocated for a maximum of 3 years

+ Training costs for managers and technical workers…

+ Cost of purchasing insurance (fire and explosion insurance, vehicle owner's civil liability insurance, vehicle body insurance, property insurance, etc.) and other fees that the business purchases and pay once for many financial years

+ Infrastructure rental has been paid in advance for many years and used for business for many periods but no certificate of use rights has been issued.

+ Research costs of great value are allowed to be allocated over many years.

+ Disposable tools and equipment of great value and the tools and equipment themselves involved in business activities for more than one financial year must be gradually allocated to cost objects over many years.

+ Long-term prepaid borrowing costs such as prepaid loan interest, or prepayment of bond interest immediately upon issuance.

+ Interest on purchases with deferred payment or installment payments.

+ The cost of major repairs to fixed assets that arise once and have a large value, the enterprise does not make an advance calculation of the costs of major repairs to fixed assets, it must be allocated over many years.

+ The difference in selling price is smaller than the residual value of the fixed asset sold and leased back as an operating lease.

+ Other long-term prepaid expenses (Hương, 2014)

For businesses that regularly incurred prepaid expenses or incurred large prepaid expenses, they should build internal processes related to receiving and processing accounting voucher, accounting and monitoring of prepaid expense accounts In particular, it is necessary to specify which types of costs will be accounted for through the prepaid expense account, clearly determine the time of allocation, and allocate costs to which cost accounts and which departments Which department is responsible for reviewing, comparing, monitoring,

Control the cost cycle to ensure that purchased goods are necessary, goods received are of correct quantity and quality, payments are accurate, reasonable and on time, recording expenses accurately and quickly The goal of Internal Control is that laws and regulations are complied with, financial reporting is reliable and all activities within the unit are effective and efficient.

- Detail accounting+ Prepaid expenses book+ Prepaid expenses card- General accounting

242 – Prepaid Expenses incur long-term prepaid expenses

Allocate great value tools and instruments

Purchasing fixed assets & investment real estate by deferred payment or installment payment method

Expenses of repairing fixed assets arises is large must allocate many accounting periods

Expense of issuing bonds is of great value

The actual value of state capital > the book value of state capital Prepaid land rent is assessed as an increase in state capital

411 prepaying rent for fixed assets(operating lease)

Periodically allocate prepaid expenses to costs for production and business

Periodically allocate major repair costs of fixed assets to costs for production and business during the period

Allocating the value of tools & instruments to costs for production and business

Carry forward all losses from exchange rate differences before operations

Periodically, deferred payments and installment payments for fixed asset purchases into expenses

Allocating loan interest according to the amount payable each period into financial charges or construction in progress

Business advantages arising when equitizing state-owned enterprises Periodically, allocate prepaid bond interest

Bond interest is recorded in costs for production and business

Diagram 1.1 Prepaid expense accounting chart

According to Circular 200/2014/TT-BTC, tools and instruments of small value when use in production and business must be recorded all at once in Cost for Production and Business.

In cases where tools and instruments, packaging, supplies for use or rental related to production and business activities in many accounting periods are recorded, they will be recorded in Account 242 - Prepaid expenses and gradually allocated to cost of goods sold or cost for production and business by each department

Multi-period tool & instrument allocation:

Monthly allocation = Value of tools & instruments

How to calculate the first month's tool & instrument allocation is as follows:

Number of days used in the month Total number of days of the month

Number of days used in the month

= Total number of days of the month - Day started using + 1

SOME ISSUES OF PREPAID EXPENSES AUDITING

Company develops and promulgates regulations on management in general and internal control in particular for specific tasks in prepaid expenses Auditors need to pay attention to the internal control system in two aspects:

- Regulations on the functions, responsibilities, powers and obligations of people or departments involved in handling work These regulations not only demonstrate professional work responsibilities but also demonstrate responsibilities for controlling and approving orders, stock receiving, etc.

- Regulations on internal control order and procedures through work handling procedures such as: application review order, purchase order, stock delivering, use, etc.

To survey the customer's internal control system, the auditors conduct the following tasks:

- Actual observation of prepaid expenses.

- Checking documents related to prepaid expenses.

- Obtain written confirmation from a third party (if necessary).

- Observe internal control procedures for prepaid expenses.

- Implement control procedures if necessary.

After performing the above work steps, the auditor should assess control risk and design tests of controls:

- Identify possible types of fraud for prepaid expenses.

- Assess the existence of the internal control system in detecting and preventing such frauds and errors.

 Assessment of materiality and control risk

The definition of materiality according to VSA No 320 “is a term indicating the importance of information (an accounting number) in financial statements…”

Information that is considered material means the lack of such information or lack of accuracy thereof That information will influence the economic decisions of users of financial statements.

Materiality is a value level determined by the auditor depending on the importance and nature of the information or error being assessed in specific circumstances However, auditors only assess materiality at a relative level, not absolutely.

The assessment of materiality can be summarized as follows:

Step 1: Initial estimate of materiality Step 2: Allocate an initial estimate of materiality to the prepaid expense Step 3: Estimate the total deviation for the prepaid expense item

Step 4: Estimate the combined error Step 5: Compare the estimated aggregate error with the original estimate or revise the original estimate of materiality

When planning an audit, the auditor needs to establish an acceptable level of materiality to detect material misstatements Specifically, the auditor needs to determine what proportion of the value of Borrowings and finance lease liabilities account for the overall asset value [ CITATION TSP17 \l 1033 ]

- Below 10%: not important - Over 10%: important Determining materiality requires professional judgment and is based on many different criteria and bases such as:

+ Elements of financial statements such as: liabilities, assets, capital, revenue, expenses,

+ Items on financial statements that users are often interested in: profit, revenue or net assets items

Through audit measures, the auditor assesses the actual level of misstatement of the prepaid expenses and compares it with the predetermined acceptable level to give the auditor's opinion.

Is the risk that the auditor will give an inappropriate audit opinion when the audited financial statements contain material misstatements The consequences of the risk of material misstatement include: inherent risk, control risk and detection risk [ CITATION TSP17 \l 1033 ]

In which: AR: is audit risk

DR: is detection risk CR: is control risk IR: is an inherent risk

1.2.2 Common risks in the process of auditing prepaid expenses

- Monitoring prepaid expenses according to each limited content - Prepaid expenses do not reflect the true nature of economic operations - Allocation of prepaid expenses does not match recorded revenue - The allocation criteria are inconsistent, the expense accounts are the same but the allocation time is different, last year it was allocated for 3 years but this year it is only 01 year

- Not a prepaid expense but still accounted for in account 242 - Allocation implementation time is not appropriate

- It's all allocated but it still continues to be allocated

CONTENTS OF PREPAID EXPENSES IN THE FINANCIAL

1.3.1.1 Objectives of prepaid expenses auditing

Incursion: All prepaid expenses transactions recorded in the period are incurred, there are no overecorded transactions.

Calculation and evaluation: to ensure that prepaid expenses transactions are determined by current accounting principles and regimes and are correctly calculated without errors

Complete: All transactions of prepaid expenses arising in the period are fully reflected and monitored in the accounting books.

Correct: transactions of prepaid expenses arising in the period are properly classified according to the provisions of relevant accounting standards and regimes and specific regulations of the enterprise; These transactions are accounted for in the correct order and accounting method.

On-time: All prepaid expenses transactions are recorded in the correct period according to the accrual basis (VSA)

1.3.1.2 The basis of prepaid expenses auditing

The unit's policies and regulations on internal control over the classification of fixed assets that the unit has applied in internal management and control Policies include: competent regulations issued by the State and the unit itself on the functions, powers, and duties of the approver

General and detailed accounting books of relevant accounts such as the detailed book of prepaid expenses, general ledger, and general ledger of related accounts.

1.3.2 The process of performing an audit of prepaid expenses items

Planning is the first stage of some audits that plays an important role, affecting the overall quality and effectiveness of the audit For prepaid expense items, planning will help the auditor collect sufficient and valid audit evidence to give an accurate opinion on the prepaid expense item on the financial statement This helps reduce errors and improve work efficiency. a Consider accepting the contract Before proceeding with the audit plan, the auditor should decide whether to accept the new client or continue with the existing client, identify the client's audit rationale, obtain the audit engagement, and staff the client

After reviewing and deciding to accept the client, the audit firm will make a contract and send it to the client The company selects experienced auditors, knowledgeable about the client's business lines and audit assistants to form the audit team The audit team must commit to the auditor's independence before proceeding with the next steps of the audit (VSA) This work is presented on work paper A120. b Collect information customers' business Auditors gain an understanding of the customers' business, learn about the accounting system and accounting policies for prepaid expenses Review the results of previous audits for prepaid expense items To perform an audit of financial statements, the auditor must have a necessary and sufficient understanding of business operations to evaluate and analyze facts, transactions, and practices.

This work is presented on work paper A310. c Collect information about customers' legal obligations Helps auditors grasp legal processes that affect clients' business activities such as: Establishment license, company charter, financial statements, audit reports, To make effective use of business insights, the auditor must evaluate and consider the overall effect of his or her understanding on the entity's financial statements, as well as the adequacy of other agencies assertions in the financial statements relative to the auditor's understanding of the business This work is presented on work paper A310. d Research the internal control system for prepaid expenses and assess control risks

Researching and evaluating the client's internal control system for prepaid expenses is an important step that the auditor needs to take when conducting an audit of this item to help the auditor design procedures appropriate audit of prepaid expenses Auditors need to pay attention to the internal control system in four aspects:

* First: Understanding the internal control system for the prepaid expenses, in order to check and control the accounting of costs incurred in prepaid expenses, and classification of expenses: Short-term prepaid expenses and Long-term prepaid expenses

* Second: Research the internal control system, consider whether the prepaid expense allocation policy is reasonable? Is there accounting policy compliance?

* Third: Research and evaluate evidence of internal control systems for prepaid expenses

- How to design: How is internal control of prepaid expenses carried out?

- Operations: How is internal control of prepaid expenses performed?

* Fourth: Evaluate the system for consistency, appropriateness and effectiveness in order to make recommendations and suggestions to improve the system This work is presented on work paper A610. e Audit planning Determine the nature, timing and extent of applicable audit procedures This is the basis for auditors to audit the client's financial statements If the plan is designed appropriately and effectively, it will help the auditor collect sufficient and appropriate audit evidence to form his or her opinion.

The overall audit plan will be revised or supplemented during the audit if there are changes in circumstances or unexpected results of audit procedures The content and reasons for changing the overall audit plan and the audit program must be clearly stated in the audit file (VSA) This work is presented on work paper D630.

1.3.2.2 Audit implementation stage a Control test ISA 500 stipulates: “Testing of controls (testing of controls) is an examina- tion to obtain audit evidence about the appropriate design and effective operation of the system accounting and internal control system Tests of controls are performed only when the internal control system is assessed to be effective Then tests of controls are performed to obtain audit evidence about the design and operation of the internal control system".

Survey the design stage of control policies Learn and evaluate control policies and internal control regulations When studying regulatory documents on a company's internal control, attention should be paid to:

- Completeness of regulations for control of steps related to prepaid expense items.

- The strictness and appropriateness of internal control regulations for issues related to prepaid expenses.

- Survey on the operation of internal control regulations. b Basic test- Analytical procedures:

During this stage, the auditor performs detailed analysis of prepaid expenses for each specific object Analytical procedures commonly applied when auditing prepaid expenses are:

+ Compare the prepaid expenses of this period with the previous period (the amount incurred this period with the amount incurred in the previous period) of each subject.

+ Compare the company's prepaid expenses with other companies in the same industry.

Analyze the indicator prepaid expenses on total assets, see what percentage of total assets the prepaid expenses account for. c Process of checking details for prepaid expense items Checking the details of prepaid expense operations will involve accounting for: instrument & tools, business expenses, payments,

When examining details of prepaid expense transactions, auditors often select a sample of transactions to audit Sampling techniques are chosen by the auditor as appropriate However, we must pay attention to operations related to prepaid expenses for large values There are no criteria for allocating prepaid expenses to business expenses in the period, no commercial contracts, invoices, etc

The detailed inspection method mainly involves reviewing and comparing transactions recorded in accounting books to relevant vouchers and documents.

Specific audit objectives and common, significant audit procedures commonly applied to obtain corroborating evidence for the respective assertions [ CITATION TSP17 \l 1033 ]

 Incursion: Prepaid expense recording operations must actually arise and be properly approved.

- Check and select a sample of some prepaid expense transactions arising during the period and compare them with relevant documents to ensure that all recorded transactions are incurred.

- Check documents related to the generation of prepaid expenses.

- Check the transfer of fixed assets with value < 30 million to instruments & tools, check the remaining value of the fixed assets upon transfer.

 Calculation and evaluation: Prepaid expense operations are calculated and evaluated to be reasonable and correct or not.

- Check sales invoices and consider accurate calculations on invoices Check the calculation of the remaining value of fixed assets converted to instruments & tools

 Complete: Prepaid expense operations recorded in accounting books must be fully accounted for, without duplicates or omissions.

- Conduct an inventory of instruments & tools, ensuring that no instruments & tools are present in the warehouse without being recorded.

* Correct: Prepaid expense operations must be classified and recorded according to accounting principles, correct account correspondence, and accurate data on documents.

- Check the sample for correct accounting of accounts, ensure there is no mis- accounting between prepaid expenses and fixed assets,

* On-time: Prepaid expenses must be accounted for promptly, ensuring that any period incurred is recorded in that period's accounting books.

- Check and select a sample of transactions arising at the end of the period and the beginning of the next period, consider whether there are transactions arising in the period that will only be recorded in the following period or vice versa d Details test of prepaid expenses account balances:

Check details of prepaid expense account balance:

+ If the previous year's audit was performed by the same auditing firm that is performing this year's audit and the opening balance has been determined to be correct, there is no need to perform additional audit procedures.

+ If the previous year's audit is performed by another auditing company, the auditor must review the previous year's financial statements and the previous year's audit records, especially issues related to prepaid expenses If it is accepted, there is no need to supplement it, but if it is not believed, additional checking procedures must be applied.

- With the ending balance: Based on the results of the audit of the opening balance, the auditor needs to combine with detailed inspection procedures on the ending balance.

+ Existence: The prepaid expense item on the accounting books actually exists + Calculation and evaluation: Prepaid expense items are calculated and evaluated accurately and correctly.

+ Cumulative: Prepaid expense items are compiled completely and accurately.

METHODOLOGY OF AUDITING ON PREPAID EXPENSES

METHODOLOGY OF AUDITING ON PREPAID EXPENSES IN THE

2.2.1.1 Accept and maintenance of old customers and assess contract risk (A120) – Appendix 1

This is the first step Moore AISC takes in every audit The customer question and answer process helps the appointed auditor get an overview of the company's operations as well as current policies and regulations At the same time, it is the basis for auditors to identify potential risks, audit risks, plan and perform audit procedures.

Appropriate procedures for accepting the client relationship and prior to signing the engagement letter have been implemented to provide reasonable assurance that the acceptance of the client relationship and the audit engagement letter are in accordance with the audit standards.

For company XYZ, after finding out the basic information of the customer, the auditor and auditing company will consider the customer's professional capacity, ability to perform the audit engagement letter, integrity and other important issues Then, risk assessment of the contract at an average level, as a basis for drawing conclusions about accepting and maintaining customers.

2.2.1.2 Prepare audit contract and select audit team (A210) – Appendix 2

For audits, the auditor needs to agree with the client on the terms of the contract before conducting the audit These terms are established into the audit contract and communicated to the customer Signing an audit engagement letter is the first step of the audit Moore AISC considers the customer's requirements to plan the audit and assign appropriate labor for the audit Based on the size of the customer unit, the complexity of the work and the customer's requirements,XYZ company will assign the quantity and quality of labor accordingly.

The audit team at Company XYZ includes:

- Mrs Huynh Tieu P: Deputy Director of Branch / Member of the Board of Directors in charge of the overall audit.

- Mrs Pham Thi Thanh M: Quality Control Board/ Directing and supervising implementation.

- Mrs Ho Thi Ha L: Head of Audit (Head of Auditing Department).

And 2 members participating in the audit include:

Leader - Mr Nguyen Ngoc S: Assistant auditor - Mrs Pham Thi Thanh H: Assistant auditor The audit will be performed in 03 days, starting from February 6, 2023 to the end of February 8, 2023 at the Public Office The above plan was implemented because the company provided us with all required audit documents promptly.

- Type of business: Joint stock company - Business line: Construction glass - Annual accounting period: begins on January 1 and ends on December 31.

- Currency used in accounting: Vietnam Dong (VND).

- Financial statements are prepared according to Circular No 200/2014/TT–

BTC issued by the Ministry of Finance of Vietnam on December 22, 2014 - Apply Circular No 202/2014/TT–BTC dated December 22, 2014 as well as other circulars guiding the implementation of accounting standards of the Ministry of Finance in preparing Financial Statements.

2.2.1.4 Preliminary analysis of financial statements (A510) – Appendix 4

After obtaining the necessary documents, the auditor conducts a preliminary analysis of the prepaid expenses item to identify the key audit procedures and identify the most likely areas of risk.

Through inspection, the auditor found that the company's short-term prepaid expenses in the year increased by VND 123,403,903 (138% increase) and long- term prepaid expenses increased by VND 12,627,768,408 (20% increase).

Table 2.1 Financial indicators for 2020 - 2022 of XYZ Company

2.2.1.5 Evaluation of the internal control system at the enterprise level (A610) – Appendix 5

According to the regulations and guidance of VSA Vietnam No 315, the assessment of internal control at the enterprise level helps the auditors to identify the risks of material misstatement (especially the risk of fraud) thereby, planning the audit

Internal control at the enterprise level often has a wide impact on all aspects of the enterprise's 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 Auditors use their professional judgment to evaluate internal control at the enterprise level by interviewing, observing, or examining documents The assessment is limited to 05 components of internal control: (1) Control environment, (2) Risk assessment process, (3) Information system, (4) Control activities and (5) Monitoring of controls (VSA)

The auditor needs to summarize the risk of material misstatement discovered during the implementation of work steps and record them in A800

2.2.1.6 Determining materiality and methods for determining sample and sample size (A710) – Appendix 6

Assessing materiality is a very important step in the audit preparation stage.

Determination of materiality level is prepared and approved according to the audit firm's policy to inform the audit team about the planned materiality level before auditing at the client unit and is responsible for re-determining the materiality level during the audit completion stage to determine whether the audit work and procedures have been fully performed or not.

The determination of materiality at Moore AISC is specifically defined in section A710: Determination of materiality (Plan – Do) The metric chosen to estimate materiality for XYZ is Net Sales Based on the results of finding out about the client's company and his/her own audit experience, the audit team leader provides the ratios to estimate materiality and calculate the materiality level shown in the table as follows:

Nội dung Đánh giá ban đầu (lập kế hoạch) Kỳ trước

LN trước thuế LN trước thuế

Doanh thu thuần Doanh thu thuần

Tổng chi phí Tổng chi phí

Tiêu chí được sử dụng để ước tính mức trọng yếu [Đánh dấu vào ô lựa chọn]

Vốn chủ sở hữu Vốn chủ sở hữu Tổng tài sản Tổng tài sản

Nguồn số liệu để xác định mức trọng yếu [Đánh dấu vào ô lựa chọn

BCTC trước kiểm toá n BCTC năm trước Kế hoạch SXKD Ước tính

Giá trị tiêu chí được lựa chọn (a) 2,078,478,313,2612,235,484,028,783 Điều chỉnh ảnh hưởng của các biến động bất thường (b)

Giá trị tiêu chí được lựa chọn sau điều chỉnh (c)=(a)-(b) 2,078,478,313,2612,235,484,028,783

Tỷ lệ sử dụng để ước tính mức trọng yếu [Đánh dấu vào ô lựa chọn và ghi cụ thể tỷ lệ % lựa chọn trong ngoặc vuông]

[5%-10%] LN trước th [5%-10%] LN trước thuế [0,5%-3%] Doanh thu [0,5%-3%] Doanh thu th [0,5%-3%] Tổng chi p hí [0,5%-3%] Tổng chi phí [1%-5%] Vốn chủ sở h ữu [1%-5%] Vốn chủ sở hữu [1%-2%] Tổng tài sản [1%-2%] Tổng tài sản

Mức trọng yếu tổng thể (e)=(c)*(d) 20,784,783,133 22,354,840,288

Lý do cho việc lựa chọn tiêu chí và lựa chọn % xác định mức trọng yếu tổng thể năm nay

Mục tiêu theo kế hoạch của đơn vị là doanh thu và lợi nhuận, đồng thời khoản mục doanh thu thuần ít điều chỉnh

Giải thích nguyên nhân chênh lệch lớn về mức trọng yếu của năm nay so với năm trước (nếu có)

(1) Nếu mức trọng yếu tổng thể năm nay thấp hơn của năm trước, xem xét liệu có tồn tại sai sót trong số dư đầu kỳ ảnh hưởng trọng yếu tới BCTC năm nay không Mức trọng yếu năm nay thấp hơn so với năm ngoái Do tình hình doanh thu của công ty giảm vì ảnh hưởng của dịch Covid.

Tỷ lệ sử dụng để ước tính mức trọng yếu thực hiện (f) [50%-75%]

Mức trọng yếu thực hiện (1) (g)=(e)*(f) 10,392,391,566 11,177,420,

Lý do lựa chọn tỷ lệ này cho năm nay

KTV đã chọn tỷ lệ 50% là phù hợp, do ước tính ảnh hưởng các rủi ro và sai sót tại A810 là mức trung bình, việc chọn ngưỡng thấp nhất giúp KTV thận trọng hơn đối với các rủi ro có sai phạm trọng yếu trên

Tỷ lệ sử dụng để ước tính ngưỡng sai sót không đáng kể

Ngƣỡng sai sót không đáng kể (i)=(e)*(h) 831,391,325 894,193,612

Lý do lựa chọn tỷ lệ này cho năm nay Chọn tỷ lệ này là phù hợp, do ước tính ảnh hưởng các rủi ro và sai sót cần điều chỉnh.

2.2.1.7 Summary of risk assessment at the financial statement level (A810) – Appendix 7

Record potential risks and control risks identified in other working papers, perform risk assessments of material misstatements at the financial statement level and assertion level, and propose remedial measures appropriate management of identified risks.

To assess the potential risk at Low/Medium/High level in A810, the auditor can perform additional workpaper procedures to consider 2 risk attributes:

- The possibility of errors due to risk - What is the magnitude (level of impact on the value of money) if the risk occurs

2.2.1.8 Planning and designing the audit program (A910; D630) – Appendix 8

Planning and designing the audit program (A910; D630) – Appendix 8

- Planning the audit program After performing the above steps, the audit team leader will finally produce a summary of the audit plan to set out the audit procedures for the operating sections and draw a conclusion that the audit engagement of Company XYZ is properly planned, then an item-specific audit program will be established.

• General procedure Check that the applicable accounting policies are consistent with the prior year and for the applicable financial reporting framework.

Prepare a table of summary data that compares with the balance at the end of the previous year and audited data in the previous period with detailed information on prepaid expenses, short-term and long-term assets Compare the balances on the general data sheet with the Balance Sheet, general ledger, detailed book, etc and working papers of the previous year's audit (if available).

When the auditor uses a list, accounting book documents prepared by the board of directors for audit purposes, the auditor must perform procedures to ensure that the list, document or accounting book is complete enough and accurate.

• Analytical procedures Compare the contents of prepaid expenses and other short-term and long- term assets of this period with the previous period by understanding the fluctuating nature of these items.

Consider whether there are specific risks identified from performing analytical procedures that could result in balances of prepaid expenses and other short-term and long-term assets containing material misstatements.

Scan the ledger to identify unusual items and transactions, find out the cause and perform corresponding checking procedures (if necessary).

• Detailed inspection procedures Reconcile material items with external audit evidence such as bank statements, third-party contracts and invoices; Ensure these costs are recorded fully, accurately and classified properly.

Check the allocation of prepaid expenses to expenses in the current period;

Review the calculation of the allocation summary table and evaluate the reasonableness of allocating prepaid expenses to related expense accounts.

Check for unallocated balances Evaluate the reasonableness of unamortized balances and ensure that costs will be amortized in subsequent periods (compare unamortized costs with the asset's life cycle time).

Review the reasonableness and verify material/unusual items and compare with previous period's items.

Evaluate the reasonableness of the time to allocate prepaid expenses chosen by the unit and its consistency with the previous year.

Consider the difference between the allocation method for accounting purposes and tax purposes (if available) and calculate eferred tax in accordance with the applicable financial reporting framework (in conjunction with auditing).

"Tax and payables to the State" (E300)).

Audit implementation stage

The auditor conducts a review to check the applicable accounting policies of XYZ to see if they are consistent with the previous year and by the provisions of working paper D640.

Tên khách hàng: CÔNG TY D640

Ngày khóa sổ: 31/12/2022 Nội dung: THỦ TỤC CHUNG – TK 242

A.1 Kiểm tra chính sách kế toán có áp dụng nhất quán với năm trước và phù hợp với khuôn khổ lập và trình bày BCTC được áp dụng không.

Nguyên tắc ghi nhận các khoản chi phí trả trước Tài khoản 242 - Chi phí trả trước theo thông tư 200

Chi phí trả trước tại Công ty bao gồm các chi phí thực tế đã phát sinh nhưng có liên quan đến kết quả hoạt động kinh doanh của nhiều kỳ kế toán Chi phí trả trước của công ty bao gồm các chi phí sau: công cụ dụng cụ; chi phí bảo hiểm xe và các chi phí khác.

Phương pháp phân bổ chi phí trả trước: Việc tính và phân bổ chi phí trả trước vào chí phí hoạt động kinh doanh từng kỳ theo phương pháp đường thẳng Căn cứ vào tính chất và mức độ từng loại chi phí mà có thời gian phân bổ như sau: chi phí trả trước ngắn hạn phân bổ trong vòng 12 tháng; chi phí trả trước dài hạn phân bổ từ 12 tháng đến 36 tháng Riêng tiền thuê đất trả trước được phân bổ vào chi phí theo phương pháp đường thẳng tương ứng với thời gian thuê.

KẾT LUẬN: Chính sách kế toán áp dụng nhất quán với năm trước

First, the auditor prepares a table of aggregated data and compares it with the balance at the end of the previous year Compare the balances on the general data sheet with the Balance Sheet and working papers of the previous year's audit (if available) This procedure is done on working paper D610.

TB,GL: Khớp với số liệu trên bảng CĐPS và Sổ Cái vvv: Tham chiếu đến bảng tổng hợp điều chỉnh kiểm toán xxx: Tham chiếu đến số liệu trên

BCTC đã được kiểm toán

PX: Đối chiếu số dư sau kiểm toán cuối kỳ trước với BCDSPS-> kết quả như sau:

Không phát sinh chênh lệch số đầu kỳ đầu kỳ

The auditor then collects or compiles a general analysis of the asset's changes on his own and compares it with the general ledger.

Before examining the details of the increase or decrease in the year, the auditor should ensure that the figures in the detailed books are equal to those reflected in the general accounts in the general ledger To do so, it is necessary to compare the total from the detailed books with the data on the ledger In addition, in sheet D610, there is a procedure to compare the opening balance of the entity with the audit report.

Figure 2.2: Prepaid expenses summary sheet

Tên khách hàng: CÔNG TY D610

Ngày khóa sổ: 31/12/2022 Nội dung: THỦ TỤC CHUNG – TK 242

TK Diễn giải Giấy tờ chi tiết

Số dư cuối kỳ Trước KT Đ/chỉnh thuần Số dư cuối kỳ

2421 Chi phí trả trước ngắn hạn

2422 Chi phí trả trước dài hạn 75.785.463.720 11,696,760 75,797,160,480 63,157,695,312

Tổng cộng 75,998,266,561 (20,860,448) 75,977,406,113 63,247,094,250 c/c TB,GL xxx PX

Số dư đầu kỳ Sl theo kiểm toán SL theo đơn vị Chênh lệch Ref

2421 Chi phí trả trước ngắn hạn 89,398,938 89,398,938 -

2422 Chi phí trả trước dài hạn 63,157,695,312 63,157,695,312 -

KẾT LUẬN: Có thỏa mãn với kết quả không? Có

Figure 2.3: The difference between this year's balance and the previous year

Tên khách hàng: CÔNG TY CP D641

Ngày khóa sổ: 31/12/2022 Nội dung: Thủ tục phân tích – TK 242

5.1 (a) So sánh nội dung các khoản mục của các khoản chi phí trả trước, các khoản tài sản khác ngắn hạn, dài hạn của kỳ này với kỳ trước bằng cách tìm hiểu bản chất biến động của các khoản mục này;

SDCK SDĐK Giá trị Tỷ lệ Ref

Tỷ lệ TSCĐ/Tổng tài sản 0.018 0.015 0.007 18%

Khoản chi phí trả trước cuối kỳ tăng so đầu kỳ là do phát sinh chi phí bảo hiểm cháy nổ và tăng tiền thuê đất.

7 Xem xét liệu có các rủi ro cụ thể được xác định từ việc thực hiện các thủ tục phân tích dẫn đến số dư các khoản phải thu nội bộ, phải thu khác ngắn hạn, dài hạn chứa đựng sai sót trọng yếu không.?

- Short-term prepaid expenses at December 31, 2022 increased by 90,846,695 VND, equivalent to 101.62% and long-term prepaid expenses increased by 12,639,465,168 VND, equivalent to 20.01% , because during the year XYZ Company incurred fire insurance costs and increased land rent.

Next, the auditor confirms that there are no specific risks identified from performing analytical procedures that could result in intercompany receivables

Người soát xét 1 20/02/2023 balances, other short-term and long-term receivables there is no risk of material misstatement.

Figure 2.4: Detect operations abnormal of accounts 242

Ngày khóa sổ: 31/12/2022 Nội dung: Thủ tục phân tích – TK 242 Đọc lướt sổ cái phát hiện các nghiệp vụ bất thường

1.1 Đọc lướt Sổ Cái tài khoản 242 để phát hiện những nghiệp vụ bất thường về giá trị, về tài khoản đối ứng hoặc về bản chất nghiệp vụ Kiểm tra đến chứng từ gốc (nếu cần)

- Đọc lướt sổ chi tiết tài khoản 242 tìm hiểu các nghiệp vụ bất thường, liệt kê các nghiệp vụ bất thường và điều giải ( Lưu sổ chi tiết trên máy) (In 5 trang đầu và 5 trang cuối SCT lưu file)

=> Không phát sinh nghiệp vụ bất thường

2.2.2.3 Perform detailed inspection procedures – Appendix 10

Check details of prepaid expenses.

Reconcile material items with external audit evidence such as bank statements, third-party contracts and invoices, ensuring these costs are recorded fully, accurately and properly classified.

Check the allocation of prepaid expenses to expenses in the current period, recheck the calculation of the allocation summary table and evaluate the reasonableness of the allocation of prepaid expenses to related expense accounts.

Check for unallocated balances Evaluate the reasonableness of unamortized balances and ensure that costs will be amortized in subsequent periods (compare unamortized costs with the asset's life cycle time).

Review the reasonableness and materiality/unusual items and compare with previous period's items.

Evaluate the reasonableness of the time to allocate prepaid expenses chosen by the unit and its consistency with the previous year.

Consider the difference between the allocation method for accounting purposes and tax purposes (if available) and calculate deferred corporate income tax in accordance with the applicable financial reporting framework (in conjunction with auditing) "Tax and payables to the State" (E300)).

Figure 2.5: Select sample to check increases in account 242

Ngày khóa sổ: 31/12/2022 Nội dung: TK 242 - Chi phí trả trước - Thử nghiệm cơ bản

THỦ TỤC CHỌN MẪU KIỂM TRA PHÁT SINH TĂNG TK 242

Lấy mẫu thống kê hay phi thống kê Thống kê Chọn 100%

Kết quả kiểm tra mẫu chọn phát sinh tăng TK 242

Nội dung mẫu chọn nghiệp vụ Số tiền

Kiểm tra chứng từ Hóa đơn, ngày Hợp đồng, ngày Thanh toán, ngày

Bảo hiểm hỏa hoạn và các rủi ro đặc biệt kỳ 3/2021-2022

Bảo hiểm cháy nổ tự nguyện

5 ngày 23/08/2022 Bảo hiểm cháy nổ bắt buộc

Tiền thuê lại đất lần 2 - đợt 2 HĐ 10/2009 và PL07 576.364 USD, tỷ giá 22.900)

00004668, 00004669 ngày 03/11/2022; và các biên lai phí đường bộ

Bảo hiểm vật chất xe 92A-19757

Bảo hiểm TNDS 6 xe đầu kéo

00004694, 00004693 ngày 4/11/2022 và các biên lai phí đường bộ

Cung cáp máy in Canon 2900

Cung cấp máy cắt cỏ 6,129,700 Hợp lý

Bảo hiểm cháy nổ bắt buộc, tự nguyện

Nhà máy sàng tuyển rửa cát Chu Lai, tiền thuê đất

Cung cấp máy tính để bàn

Tiền thuê lại đất lần 2 - đợt 2 HĐ 43/2016 và PL01 274.613,5 USD, tỷ giá 23.730)

Cung cấp Ắc quy, bạt, máy bơm

Cung cấp xốp eva phế liệu

The auditor selects a sample from the detailed book of account 242 because there is few sample in account 242, the auditor chooses a statistical sampling procedure That is choosing 100% of the sample to check voucher.

Table 2.3: Detailed book of prepaid expenses

SỔ CHI TIẾT TK 242 – Chi phí trả trước

Ngày Số Diễn giải Tk đối ứng

06/01 715 Tiền thuê lại đất lần 2 - đợt 2 HĐ

10/2009 và PL07 576.364 USD, tỷ giá 22.900)

28/02 3368 Bảo hiểm hỏa hoạn và các rủi ro đặc biệt kỳ 3/2021-2022

31/03 1270 Cung cấp Ắc quy, bạt, máy bơm 331 32,046,400

05/05 ĐKQN Phí đăng kiểm xe 92C12866, 92C12861,

Cung cấp xốp eva phế liệu 331 35,100,000

23/08 43742 Bảo hiểm cháy nổ bắt buộc 331 36.834.182

23/08 43734 Bảo hiểm cháy nổ tự nguyện 331 147.320.000

06/10 2 Nhà máy sàng tuyển rửa cát Chu Lai, tiền thuê đất

04/11 2341 Bảo hiểm TNDS 6 xe đầu kéo 331 23.755.636

04/11 2315 Bảo hiểm vật chất xe 92A-19757 331 10.030.909

04/11 240 Cung cấp máy tính để bàn 331 10.727.273

24/11 254 Cung cấp máy in Canon 2900 331 3.772.727

30/11 531 Cung cấp máy cắt cỏ 331 6.129.700

21/12 84264 Bảo hiểm cháy nổ bắt buộc, tự nguyện 331 138.115.636 30/12 281 Tiền thuê lại đất lần 2 - đợt 2 HĐ

43/2016 và PL01 274.613,5 USD, tỷ giá 23.730)

Mã Tên công cụ dụng cụ Ngày sử dụng phương pháp đường thẳng

Mã Tên công cụ dụng cụ Ngày sử dụng Giá trị đầu kỳ Giá trị phân bổ Giá trị còn lại Giá trị phân bổ trong kỳ KTV tính lại chênh lệch Giá trị cuối kỳ Giá trị phân bổ Giá trị còn lại

CCDC00145HM lợp mái thay máng xối inox phòng tập 01/01/2020 387.129.671 258.086.448 129.043.223 129.043.223 129.043.223 - 387.129.671 387.129.671 36 E04HTH02 Hệ thống Camera quan sát, cấp STT xe ra vào bãi 10/04/2020 31.818.182 27.840.918 3.977.264 3.977.264 3.977.264 - 31.818.182 31.818.182 24

E04HTH03 Phần mềm cấp phát STT xe ra vào bãi 10/04/2020 30.000.000 26.250.000 3.750.000 3.750.000 3.750.000 - 30.000.000 30.000.000 24

VTSCLN Vật tư sửa chữa, thay thế lò nấu 11/09/2019 1.784.287.980 1.387.779.540 396.508.440 396.508.440 396.508.440 - 1.784.287.980 1.784.287.980 36

CCDC0020 Cung cấp bộ máy tính 02 04/11/2022 893.940 893.940 - 10.727.273 893.940 9.833.333 24

CCDC0096 Cung cấp vật tư điện các loại 25/06/2020 22.580.000 17.875.827 4.704.173 4.704.173 4.704.173 - 22.580.000 22.580.000 24

CCDC0174 Cung cấp vật tư các loại 01 30/09/2019 135.804.750 105.625.912 30.178.838 30.178.838 30.178.838 - 135.804.750 135.804.750 36

CCDC0848 bảo hiểm nhà máy kính nổi 05/11/2021 150.526.364 75.263.182 75.263.182 75.263.182 75.263.182 - 150.526.364 150.526.364 4

CCDC0848 bảo hiểm nhà máy kính nổi 28/02/2022 150.525.455 150.525.455 - 150.525.455 150.525.455 4

CCDC0848 bảo hiểm nhà máy kính nổi 21/12/2022 34.528.909 34.528.909 - 138.115.636 34.528.909 103.586.727 4

CCDC1014 Vật tư sửa chữa 21/04/2020 118.800.000 103.950.000 14.850.000 14.850.000 14.850.000 - 118.800.000 118.800.000 24

CCDC1014 Vật tư sửa chữa 15/06/2020 150.000.000 79.166.673 70.833.327 50.000.004 50.000.004 - 150.000.000 129.166.677 20.833.323 36

CCDC1036 Gia cố nền chứa bãi kính vụn, cải tạo nhà vệ sinh 11/06/2019 703.425.145 605.727.197 97.697.948 97.697.948 97.697.948 - 703.425.145 703.425.145 36

CCDC1039 Thi công lắp đặt nội thất nhà ăn củ 03/10/2019 335.741.680 251.806.266 83.935.414 83.935.414 83.935.414 - 335.741.680 335.741.680 36

CCDC1041 Vật tư, nhân công sửa chữa xe xúc lật 18/10/2019 281.226.200 210.919.653 70.306.547 70.306.547 70.306.547 - 281.226.200 281.226.200 36

CCDC1043 Cải tạo nhà nghỉ nhận viên, sân nền BBQ, mương, bó vỉa

CCDC1044 Thi công sửa chữa các hạng mục nhà máy kính nổi 09/12/2019 192.969.965 134.006.925 58.963.040 58.963.040 58.963.040 - 192.969.965 192.969.965 36 CCDC1046 Các công việc phục vụ SX của nhà máy kính 07/04/2020 155.131.803 135.740.325 19.391.478 19.391.478 19.391.478 - 155.131.803 155.131.803 24

CCDC1065 Máy cắt cỏ Honda UMK 435TU2ST 30/11/2022 510.808 1.021.616 (510.808) 6.129.700 510.808 5.618.892 12

CCDH0492 Dịch vụ cung cấp vật tư và thay thế gạch tại bể thiếc 05/03/2019 1.513.363.182 1.429.287.444 84.075.738 84.075.738 84.075.738 - 1.513.363.182 1.513.363.182 36

CCNH0028 Phí bảo hiểm xe ô tô 04/11/2022 3.959.272 3.959.272 - 23.755.636 3.959.272 19.796.364 12

CCNH0028 Phí bảo hiểm xe ô tô 04/11/2022 1.671.818 1.671.818 - 10.030.909 1.671.818 8.359.091 12

CCNH0028 Phí bảo hiểm xe ô tô 29/09/2021 21.203.636 7.067.880 14.135.756 14.135.756 14.135.756 - 21.203.636 21.203.636 12

CCNH0037 Bộ máy vi tính 28/02/2020 6.309.091 6.046.217 262.874 262.874 262.874 - 6.309.091 6.309.091 24

M24TNH03 Tấm nhựa PP chống mài mòn 1500x6000x12mm 31/05/2019 112.320.000 99.840.000 12.480.000 12.480.000 12.480.000 - 112.320.000 112.320.000 36

Công cụ dụng cụ tại 01/01/22 Công cụ dụng cụ tại 31/12/22

ACQUY02 Ắc quy N100 ĐN QG HYB 31/03/2022 18.909.900 (18.909.900) 18.909.900 18.909.900 3

ACQUY03 Ắc quy N85 ĐN HYB 31/03/2022 1.730.900 (1.730.900) 1.730.900 1.730.900 3

ACQUY04 Ắc quy CMF-31800R ĐN 31/03/2022 4.902.400 (4.902.400) 4.902.400 4.902.400 3

CCDC000154 Thi công hạng mục rau sạch và sửa chữa các hạng mục 26/10/2019 217.807.703 163.355.778 54.451.925 54.451.925 54.451.925 - 217.807.703 217.807.703 36

E01TBL04 Vật tư máy nén kho đông lạnh của bếp ăn 08/07/2020 28.474.560 21.355.920 7.118.640 7.118.640 7.118.640 - 28.474.560 28.474.560 24

E11CMR02 Camera soi lỗi kính 30/03/2020 270.000.000 247.500.000 22.500.000 22.500.000 22.500.000 - 270.000.000 270.000.000 24

E19BCC01 Thiết bị chống cáu cặn EWC-4000 12/08/2019 750.500.000 604.569.438 145.930.562 145.930.562 145.930.562 - 750.500.000 750.500.000 36

E19BOM01 Bơm cao áp (Động cơ + đầu bơm) Urali của Ý 20/03/2020 279.800.000 170.988.884 108.811.116 93.266.664 93.266.664 - 279.800.000 264.255.548 15.544.452 36

E19MDI01 Máy điều hòa 24000BTU 31/07/2019 14.800.000 12.333.330 2.466.670 2.466.670 2.466.670 - 14.800.000 14.800.000 36

E19MDI01 Máy điều hòa 24000BTU 04/10/2019 59.200.000 44.399.988 14.800.012 14.800.012 14.800.012 - 59.200.000 59.200.000 36

E19MHI01 Màn hình điều khiển máy nén khí trục vít L250 20/03/2019 84.000.000 79.333.322 4.666.678 4.666.678 4.666.678 - 84.000.000 84.000.000 36

E21BTA02 Biến tần Danfoss FC302 22KW 20/03/2020 59.400.000 54.450.000 4.950.000 4.950.000 4.950.000 - 59.400.000 59.400.000 24

M10LOP03 Lốp+xăm+yếm 12.00-20 DOUBLE-COIN 21/04/2020 228.727.282 200.136.363 28.590.919 28.590.919 28.590.919 - 228.727.282 228.727.282 24

M10LUO11 Lưới sàng PU MAT 300x800x30mm AP 2.0x11mm 11/03/2019 185.593.136 175.282.410 10.310.726 10.310.726 10.310.726 - 185.593.136 185.593.136 36 M10LUO12 Lưới sàng PU WS85 800x300x30MM AP 0.5x12.0 11/03/2019 166.091.044 156.863.760 9.227.284 9.227.284 9.227.284 - 166.091.044 166.091.044 36 M10LUO13 Lưới sàng PU MAT 800x300x30mm AP 0.3x12 11/03/2019 225.794.581 213.250.448 12.544.133 12.544.133 12.544.133 - 225.794.581 225.794.581 36 M10LUO14 Lưới sàng PU MAT 800x300x40 AP 0.55x5.5mm 11/03/2019 361.105.358 341.043.936 20.061.422 20.061.422 20.061.422 - 361.105.358 361.105.358 36

M10LUO15 Tấm nối 2 lớp sàng tinh WS85 1300x217x30/15MM 11/03/2019 41.933.134 39.603.506 2.329.628 2.329.628 2.329.628 - 41.933.134 41.933.134 36

NHAMANGRAUSACH Nhà màng trồng rau sạch 27/08/2021 203.850.000 28.312.500 175.537.500 67.950.000 67.950.000 - 203.850.000 96.262.500 107.587.500 36

XOPEVA Xốp eva phế liệu 30/06/2022 35.100.000 35.100.000 - 35.100.000 35.100.000 6

E09CPU01 CPU Máy tính để bàn 31/03/2020 3.850.000 3.529.174 320.826 320.826 320.826 - 3.850.000 3.850.000 24

Tiền thuê đất nhà máy sàn tuyển cát 01/07/2017 50.886.730.000 4.579.805.692 46.306.924.308 1.017.734.592 1.017.734.592 - 50.886.730.000 5.597.540.284 45.289.189.716 600 Tiền thuê đất nhà máy kính nổi 30/12/2020 10.519.326.710 1.647.193.344 8.872.133.366 1.647.193.344 1.635.496.584 11.696.760 22.518.177.255 3.294.386.688 19.223.790.567 Tiền Thuê đất bồn dầu 29/07/2021 5.759.394.041 242.087.724 5.517.306.317 322.783.632 322.783.632 - 11.683.556.182 564.871.356 11.118.684.826

Lệch 525.183.835 so với CĐSPS do hạch toán tăng tiền thuê đất nhầm nên ghi giảm lại

The auditor recalculates the allocated value during the period to compare the difference The calculation and allocation of prepaid expenses to cost for production and business each period is based on the straight-line method.

End – stage of audit

2.2.3.1 Preparing for the end of the audit

- Review working papers After completing the audit, the audit team leader usually reviews all the working papers that the auditor has done The auditor summarizes all the working papers for each item After that, the team members and the team leader will discuss before preparing the audit minutes to make assessments,recommendations, summarize adjusting entries, and draw final conclusions

61 about the cost item paid in advance and used as a basis for issuing audit reports and official financial statements.

This review and review is to:

+ Confirm working papers have all the necessary information to prove conclusions in future audit reports.

+ Make sure the evidence contains complete and accurate information.

+ Check the appropriateness in applying accounting and auditing standards.

- Consider events arising after the date of financial statements Determine whether there are additional events that arise after implementing the audit plan that would affect the auditor's findings regarding the prepaid expense item.

- Summarize audit report results After finishing the audit of the Prepaid Expenses item, the auditor needs to send the results to the team leader so that the team leader can review the evidence to ensure reasonableness Before completing the audit, the Audit Documents must undergo two rigorous reviews The working paper of the prepaid expense item will be gathered with other administrative sections for the Head of Department to review before submitting to the Board of Directors The Board of Directors reviews the audit documents one last time before issuing the final audit report.

After conducting discussions with the client and reaching an agreement on the audit results, according to the signed Contract, Moore AISC prepares and publishes the final audit report The report includes:

- Report of the Board of Directors - Auditor's report

- Balance sheet as of December 31, 2022- Income statement as of December 31, 2022- Notes to the financial statements for the year 2022.

COMMENTS AND SOLUTIONS TO COMPLETE THE

EVALUATION OF THE CURRENT STATUS OF THE AUDIT OF

Domestic and foreign auditing companies are increasingly growing with a diversity of services provided, creating great competitive pressure on Moore AISC To stand firm and assert its position in the market, Moore AISC must prove its own superiority Moore AISC has built a relatively strict and reasonable audit process for audit steps in general and prepaid expense activities in particular

The prepaid expense audit process is built based on audit standards and is consistent with the company's general audit process With the process of auditing prepaid expenses, the company has achieved the following outstanding advantages:

* During the audit planning stage The planning stage is the opening stage for the audit at the company, so the more detailed, complete and accurate the audit plan is, the more favorable conditions it will create for the implementation of the next audit stages In this stage, the most important goal is to collect all necessary information about the customer to establish an audit plan suitable to the customer's actual situation.

+ For new customers, auditing in the first year, during this period, auditors focus on collecting basic information about customers such as: Business lines, production and business fields, applied accounting policies, objectives, strategies, management organization systems, etc This information is the basis for auditors to initially assess materiality and risks, from which to build a audit plan.

+ For annual audit clients, auditors focus on evaluating the internal control system and assessing the materiality of risks Collecting information about customers can refer to audit records of previous years This can help auditors both save time and speed up work progress, improving efficiency.

+ In this step, Moore AISC combines the collection of information about the internal control system at the enterprise-wide level and the customer's business situation, thereby determining audit goals and methods.

Reasonable and effective methods and strategies help auditors save time and costs, and work is carried out independently and effectively to provide authentic information for audit report At the same time, determining the audit team and assigning specific tasks appropriate to the auditors has helped Moore AISC receive high appreciation from customers for its professional working environment This is a pre-sampled audit program, flexibly applied to all types of businesses for easier implementation The program is built to comply with current audit standards and accounting standards in Vietnam.

* During the audit implementation stage The auditor has fully implemented the procedures according to the established audit program:

+ General procedures: The auditor reviews the prepaid expense items of the accounting unit and evaluates whether the accounting of prepaid expenses of the enterprise is consistent with current accounting standards and regimes or not?

+ For analytical procedures: The auditor analyzed the fluctuations in prepaid expenses compared to the previous year and made comments and assessments.

+ And detailed inspection procedures: Review unusual transactions then select samples for detailed inspection.

Auditors always strictly follow these procedures to collect the most authentic evidence.

* At the end of the audit During this stage, the auditor reviews and summarizes all audit work performed, reviews and evaluates findings and makes adjusting entries (if available), discusses and exchanges with customers to find the cause, reach a consensus to conclude At the end of the audit work on prepaid expenses, issues should be noted in each audit to be careful in the next audits and AISC auditors always discuss with customers and collect unusual transactions to make appropriate adjustments These regulations help auditors review working papers and control quality easily and conveniently for archiving audit records as well as help businesses improve the quality of their operations.

Besides the above advantages, audit prepaid expenses at Moore AISC also has limitations:

Because information about old customers is stored in audit files of previous years and due to time constraints, auditors often rely on available information and rarely collect additional information more about the company Therefore, changes in information that affect the results of the audit may be overlooked For new customers, due to time constraints as well as difficulties in the collection process, the data information obtained is very limited.

- Limitations on auditing prepaid expense item:

+ When entering the audit season, auditors are often very busy, so incomplete inventories may occur That can affect the auditor's ability to compare the figures on the books with the actual figures at the end of the period When inventory is incomplete, there is a risk of missing information or not being able to fully determine the items' data This can cause inaccuracies and unreliability in financial reporting

+ Sorting prepaid expenses into short-term and long-term can be difficult.

An expense may be considered short-term for one business but considered long-term for another.

Regarding the shortage of human resources, especially auditors of MooreAISC, this leads to the overload of each employee's workload, which must be completed in a short time, making it difficult to ensure high accuracy in the audit work and also leads to staff having to work overtime to complete assigned work on time The shortage of human resources also leads to a limited number of customers.

SOME SOLUTIONS TO IMPROVE THE AUDIT OF PREPAID EXPENSES

3.2.1 Complete solution to collect information about customers

Auditors need to be flexible in approaching long-term customers to collect additional information, ensuring that important innovation information that affects audit results will not be overlooked Auditors need to pay more attention to finding out information about old customers, especially information about new customers The information must be enough for auditors to identify the main risks that may occur to prepare audit program and plan.

3.2.2 Solution to complete the limitations in prepaid expenses item

About the lack of inventory:

Checking the occurrence of account 242 increase transactions during the year when no inventory was witnessed becomes important to ensure the accuracy of financial data Check invoices, contracts, and delivery records related to account 242 increases Ensure that these transactions have been properly executed and fully recorded in the financial system Evaluate the reasonableness of account 242 transactions compared to the business activities of the enterprise during the year Ensure that transactions accurately reflect the business needs and purposes of the enterprise And finally the auditor needs to discuss with relevant departments or partners to confirm and clarify the 242 account increase transactions.

To distinguish between short-term and long-term prepaid expenses, auditors can consider several factors in the accounting voucher If the accounting voucher clearly indicates a payment period of one year, it can be considered a short-term prepaid expense For more than one year, it can be considered a long-term prepaid expense If the intended use lasts for many years, this may be a long-term prepaid expenses Most importantly, ensure that distinctions are made based on accounting principles and legal regulations to ensure accuracy.

3.2.3 The solution to improve quality and strengthen staff

The company needs to focus on selecting and retaining employees with high professional qualifications and professional ethics because good quality employees not only improve work performance but also comply with auditing standards.

To become an auditor, an individual must meet all the standards as prescribed in Clause 14 of the Law on Independent Auditing 2011,specifically as follows: "Have full civil act capacity; Have good qualities,good ethics, sense of responsibility, integrity, honesty, objectivity; Have a university diploma or higher in finance, banking, accounting, auditing or

68 other majors as prescribed by the Ministry Finance; Have an auditor certificate according to regulations of the Ministry of Finance".

Currently, the majority of audit personnel in the company are young employees, so we should create conditions for employees to participate in training courses to improve their qualifications and specialized auditing courses To attract talented employees and retain old employees in addition to a reasonable salary and bonus regime, the company needs to create a positive working environment and have reward regulations to help employees be motivated to contribute to improving quality, work efficiency as well as long-term commitment to the company.

Through learning and researching the audit process of prepaid expenses at Moore AISC, I see the importance of auditing in general and auditing prepaid expenses in financial statements in particular.

During my internship at AISC, I learned about the company's history of formation and development, the organizational structure, auditing process, and especially interacted with and learned about the work as well as other aspects of the business I have learned very useful knowledge about auditing skills to help me gain more experience, professional knowledge and prepare before graduating

However, due to limited time and not much experience, my recommendations are still very theoretical These are just small recommendations derived from my own opinions to improve the audit process at the company I look forward to receiving guidance and suggestions from teachers in the subject to help me write better Once again, I would like to thank Ms Hoang Anh Thu and the staff at Moore AISC for guiding and helping me during my internship as well as in the process of completing this thesis.

1 Hương, T N (2014) Các quan điểm phân loại chi phí trả trước Viện Đào tạo Quốc tế.

2 TS Phan Thanh Hải & ThS Hồ Tuấn Vũ (2017) Giáo trình Kiểm toán căn bản Đà Nẵng: NXB Đà Nẵng.

3 Hạnh, H (2015) Khóa luận kiểm toán4 VSA

1 Accept and maintenance of old customers and assess contract risk (A120) 59-62

2 Prepare audit contract and select audit team

4 Preliminary analysis of financial statements

5 Evaluation of the internal control system at the enterprise level (A610) 83-88

6 Determining materiality and methods for determining sample and sample size (A710) 89-91

7 Summary of risk assessment at the financial statement level (A810) 92-93

8 Planning and designing the audit program (A910;

Appendix 1 – A120: Accept and maintenance of old customers and assess contract risk

Appendix 2 – A210: Audit contract and audit team

Appendix 5 – A610: Evaluation of the internal control system at the enterprise level

Appendix 8 – A910: Summary of audit plan