Auditing For Salary And Salary Deduction Item In Financial Statement Audit At Branch Of Moore Aisc Auditing And Informatics Services Company Limited In Da Nang For Customer Xyz.doc

in theprocess of auditing salaries and salary deductions, I hope this thesis will make usefulcontributions to the company in the future and provide solutions to overcomeremaining problem

Reasons for choosing a research topic

Salary is the employee's income based on the quantity and quality of labor while performing the employee's own work according to the commitment between the business owner and the employee For businesses, wages are a production cost Salary auditing for businesses must be done accurately and reasonably Salaries paid according to labor results will stimulate employees to work, increase efficiency for businesses, and promote the spirit of enthusiasm and creativity in the labor process In addition to the main salary that employees are entitled to, bonuses, allowances social insurance, health insurance, unemployment insurance, and community insurance are social funds that employees are entitled to, which show the concern of society and businesses business to each member of the enterprise.

Salary is always an issue that society pays attention to because of its great economic and social significance.

For production and business enterprises, salary is a large part of production costs.

If businesses apply a reasonable salary regime, it will create motivation to increase labor productivity

During my internship and internship report at MOORE AISC, I had the opportunity and conditions to learn and research the current situation of salary audit and salary deductions at the company It has helped me a lot in consolidating and expanding the knowledge I have learned at school that I have not had the conditions to apply in practice.

Research Objectives

Research the current situation of auditing in the financial statement audit by MOORE AISC made at the client company From there, understand more deeply and provide solutions to overcome the shortcomings that still exist in reality about the audit cycle of salary and salary deductions.

Learn the theoretical basis of the salary audit cycle and salary deductions in financial statement audits.

Learn about the current status of salary audits and salary deductions in financial statement audits at MOORE AISC.

Compare the actual situation with the theoretical basis, evaluate the similarities and differences between the theoretical basis and the above research situation.

Comment and evaluate the salary audit process and salary deductions performed by MOORE AISC

Based on the deadline, propose solutions to overcome limitations to complete the salary audit process and salary deductions at MOORE AISC

Research Methods

Qualitative and quantitative research methods through the following techniques:

Refer to auditing documents, auditing textbooks, accounting standards, auditing standards, current accounting regime (TT Circular 200), graduation theses of previous students at the library, electronic library website Duy Tan University, to research and present Chapter 1: Literature review of auditing of salary audit and salary deductions in financial statement auditing.

During my internship at MOORE AISC, I can directly go to the office during working hours to meet Company staff and observe auditors and auditor assistants at work At the same time, use the interview method to ask questions and concerns about the research part of the salary category and salary deductions on the financial statements to better understand the process and relevant working documents relate to.

Being assigned, arranged by the Company, directly participating in actual audits, working with working papers and being tasked with performing a few small parts in the audit workflow from then on have a more realistic view of audit work.

Use a combination of the above methods to complete Chapter 2: Methodology of auditing salaries and salary deductions in the financial statement auditing performed by Branch of MOORE AISC Auditing and Informatics Services Company Limited in Da Nang for customer XYZ.

 Data collection and processing methods:

Collect raw data and customer information from team leaders and assistants through sample papers and audit records to copy as a basis for the practicality of the topic Select data from self-taken files and paper samples by processing primary data (raw data) into secondary data using Word software for document templates, contracts, etc to serve the audit cycle , the part that needs to be presented to customers and ensure successful completion of the research topic, avoiding massive selection leading to inappropriate data.

Use Microsoft Excel software to calculate arithmetic to compare and contrast data between this period and the previous period, between subjects according to horizontal and vertical analysis.

Evaluate the advantages and disadvantages in the process of auditing salary items and salary deductions based on comparing the theoretical basis with the actual situation of the audit process of salary items and salary deductions on the financial report of Branch of MOORE AISC Auditing and Informatics Services Company Limited in Da Nang From there, complete Chapter 3: Comments and solutions to complete the auditing activities of financial statements at Branch of MOORE AISC Auditing and Informatics Services Company Limited in Da Nang.

Chapter 1: Literature review of auditing for salary and salary deductions item in financial statement.

Chapter 2: Methodology of auditing salaries and salary deductions in the financial statement performed by Branch of MOORE AISC Auditing and Informatics Services Company Limited in Da Nang for customer XYZ.

Chapter 3: Comments and solutions to complete the auditing activities of financial statements at Branch of MOORE AISC Auditing and Informatics ServicesCompany Limited in Da Nang.

LITERATURE REVIEW OF AUDITING FOR SALARY AND

GENERAL OVERVIEW OF SALARY AND SALARY DEDUCTIONS IN

1.1.1 The concept and characteristics of salary and salary deductions

In current economy, labor is also considered a commodity, because it can create value from the productive labor process Therefore, salary is the amount of money paid by the employer to the employee according to labor law and labor contract.

The concept of salary and salary deduction: According to the provisions of Article 90 of the 2019 Labor Code, salary is defined as salary which is the amount of money that the employer pays to the employee according to the agreement to perform the job, including the salary According to job or title, salary allowances and other additional payments.

Salary according to job or title must not be lower than the minimum wage.

Employers must ensure equal pay, regardless of gender, for employees doing work of equal value.

Along with salary are salary deductions including social insurance, health insurance, unemployment insurance, union fees, etc.

1.1.2 Classification of salary and salary deductions 1.1.2.1 Classification of salary

Salaries include the following two types:

– Nominal salary: refers to the amount of money that a business pays to employees, consistent with the quantity and quality of labor they contribute.

– Actual salary: is the amount of living materials and services that an enterprise can exchange with its nominal salary after paying taxes, contributions, and payments according to regulations Therefore, it can be said that only real wages accurately reflect the real living standards of employees at all times.

Salary deductions including social insurance, health insurance, unemployment insurance, union fees, etc.

- Social insurance: is formed by deducting according to the prescribed ratio from the total basic salary fund and allowances (position, area, ) of employees actually incurred during the month.

– Pursuant to Decision No 23/2021/QD-TTg dated July 7, 2021 of the Prime Minister and Resolution No 68/NQ-CP dated July 1, 2021 of the Government regulating the rate of Insurance contributions Insurance rates are set as follows:

 Period from October 1, 2021 to June 30, 2022:

Current total deduction rate is 25%, in which: 17% is included in business expenses, 8% is deducted from the employee's salary.

 Period from July 1, 2022 to September 30, 2022:

Current total deduction rate is 25.5%, in which: 17.5% is included in business expenses, 8% is deducted from the employee's salary.

– The social insurance fund is spent on the following cases: employee illness, maternity, labor accidents, occupational diseases, retirement, and death.

– This fund is managed by the social insurance agency.

– Used to pay for medical examination and treatment, medicine, hospital fees, etc for employees during illness, childbirth, etc.

– This fund is formed by deducting at a prescribed rate from the total amount of the employee's basic salary and allowances actually incurred during the month.

– Pursuant to Decision No 23/2021/QD-TTg dated July 7, 2021 of the Prime Minister and Resolution No 68/NQ-CP dated July 1, 2021 of the Government regulating the rate of Insurance contributions Insurance rates are set as follows:

The current health insurance deduction rate is 4.5%, of which 3% is calculated in business expenses and 1.5% is deducted from employees' salary.

- Unemployment insurance: Formed by deducting at a prescribed rate from the total amount of the employee's basic salary and allowances actually incurred during the month.

– This is a measure to support employees with a financial amount to ensure the stability of their lives during the time of job loss.

The current unemployment insurance deduction rate is 1%, of which 0% is calculated in business expenses and 1% is deducted from employees salaries.

- Trade union fees: formed by making deductions according to the prescribed ratio on the total actual salary payable to employees actually incurred during the month, calculated into production and business costs.

– The union fee deduction rate according to the current regime is 2% calculated into the enterprise's expenses.

– The amount of enterprise union funds extracted is partly paid to the superior labor federation, and partly left to spend on trade union activities at the enterprise.

– However, the rate of businesses participating in this union funding fund is currently very low.

1.1.3 Salary payment forms and salary calculation methods

Based on the salary stated in the labor contract, the enterprise pays the employee's salary, labor productivity, volume and quality of work performed by the employee, ensuring a reasonable salary, salary paid to employees who do the simplest work under normal working conditions and working hours, completing the agreed labor norms or tasks (excluding additional payments when the employee works overtime, night work) must not be lower than the regional minimum wage prescribed by the Government.

Pursuant to the provisions of Article 22 of Decree No 05/2015/ND-CP, the forms of salary payment are specifically guided as follows:

- Time-based salary (monthly, weekly, daily or hourly) is paid to employees who receive salary based on time, based on actual working time by month, week, day, hour, specific time Can: a) Monthly salary is paid for a working month determined on the basis of the labor contract; b) Weekly salary is paid for a working week determined on the basis of monthly salary multiplied by 12 months and divided by 52 weeks; c) Daily salary is paid for a working day determined on the basis of monthly salary divided by the number of normal working days in the month (calculated according to each calendar month and ensuring that employees have an average of 01 day off) month (at least 04 days) according to the provisions of law that the enterprise chooses; d) Hourly wage is paid for one hour of work determined on the basis of daily wage divided by the number of normal working hours in a day as prescribed in Article 104 of the Labor Code.

There are 2 forms that businesses often apply:

Salary payable in the month = Monthly salary: Number of days required to work

* actual number of days worked The prescribed number of working days = Number of days in the month - days off

Salary payable in the month = Monthly salary/26 days*Actual number of working days

1.1.3.2 Salary calculation methods 1.1.3.2.1 Calculate salary by time

Actual working time of employees: Month, day, hour The initial salary agreed between the enterprise and the employee.

Monthly salary = Negotiable salary / number of working days in the month * actual number of working days

+ Monthly salary is usually fixed.

+ The amount of money per working day is fixed No matter how many days off an employee takes, he or she just needs to multiply that number of times to get the salary deducted for the month.

Monthly salary = Negotiable salary/ 26*actual working days in the month + The standard monthly workday is different so the monthly salary is also different between months For example: in February 2019, the standard number of working days is 25, in March 2019, the standard number of working days is 27

+ When taking unpaid leave, employees can consider the month of leave so that their income is least affected This can affect the production situation of the business when many employees choose to take time off in months with large standard work days to minimize deducted wages.

1.1.3.2.2 Salary calculation based on product

Basis for salary calculation: Quality and quantity of products or completed work.

Advantages: Encourages workers to improve labor productivity, contributing to increasing products.

Disadvantages: Product quality must be strictly checked.

Product salary = Product unit price * Product quantity

1.1.3.2.3 Calculate salary based on revenue

Basis: Sales achieved according to sales goals and salary/sales bonus policy according to company regulations.

Applicable subjects: Usually business staff, sales staff

Advantages: Reduces budget deficit when businesses do not achieve good results.

Revenue salary = Monthly salary + % of sales

Basis: Completed volume in accordance with quality and unit salary unit price Subjects of application: usually applied to products that are seasonal, short-term, products that do not follow any standards usually construction companies.

Advantages: Increases worker productivity and speed Disadvantages: Not controlling work closely will lead to poor quality.

Contract salary = Contract salary * % of completed products

1.1.3.2.5 Calculate salary during work stoppage, annual leave, holidays, paid personal leave

- Annual leave is prescribed in Article 111 of the Labor Code: Employees who have worked for an employer for 12 months are entitled to annual leave and full salary according to the contract from 12 to 16 days .

- Annual leave days increase according to the employee's seniority as prescribed in Article 112 of the Labor Code: For every 05 years of working for an employer, the number of annual leave days is prescribed according to Clause 1, Article 1 111 of this Code is increased by 01 day.

- On holidays and Tet holidays in Article 115 of the Labor Code, employees are entitled to leave with full pay:

+ 1 day off for New Year's Eve + Lunar New Year holiday 05 days + Victory Day 01 day

+ National Day 01 day + Hung King's death anniversary 01 day - Paid personal leave days include:

+ Marriage: 03 days off+ Child gets married: 01 day off+ Biological father, biological mother, father-in-law, mother-in-law or father-in- law, mother-in-law dies; wife dies or husband dies; Child dies: 3 days off.

ACCOUNTING FOR SALARIES AND SALARY DEDUCTIONS

Accountant need to pay attention to the following important points:

- Responsible for accurately reporting quantity, time and labor results

- Calculate and pay correctly and promptly salaries and other payments to employees The correctness and timeliness of the salary payments that the Enterprise must pay on behalf of the employees and the correct allocation of labor costs to production and business expenses in a manner consistent with the business objects in the enterprise

- Provides timely information on wages, salary payments, and businesses to help managers manage and manage labor, wages, and deductions according to salary

-Through accounting records, check compliance with salary regulations and labor plans, check compliance with salary compensation, compliance with labor regulations and regulations on salary payments to employees labor.

1.2.2 Accounting for Salary and salary deductions 1.2.2.1 Vouchers:

To manage labor quantity, businesses use labor lists This number is prepared by the Labor Department to determine the situation of allocation and use Existing labor in the enterprise Documents used to calculate consolidated labor include:

- Form 03-LDTL: Social insurance leave voucher

- Form 04-LDTL: Social insurance payment tableThe above documents can be used as a basis for recording directly in accounting books or as a basis for synthesizing and then recording in accounting books.

To reflect the payment situation of salaries, social insurance, health insurance, union funds Accountants use the following main accounting accounts:

- Account 334: Payable to employees - Account 338: Other payable

- Account 335: Accruals Account 334: Payable to employees - This account is used to reflect the amounts and payment situation payable to the enterprise's employees in terms of salaries, wages, bonuses, social insurance and other payables related to the employees' income In construction enterprises, this account is also used to reflect wages paid to outsourced workers.

 Structure and content reflected in account 334 Debit:

- Deductions from wages and salaries of employees - Salaries, wages and other amounts paid to employees - Carrying forward unpaid salaries of public employees Credit:

- Salaries, wages and other amounts still payable to employees

Account 338: Other payable - Used to reflect amounts payable to legal agencies, organizations, social organizations, and superiors regarding trade union fees, social insurance, health insurance, and deductions from salary according to the court's decision (child support upon divorce, child support for illegitimate children, court fees), value of excess assets awaiting resolution, temporary loans, escrow receipt, short escrow deadlines, collections, custody, etc.

 Structure and content reflected in Account 338:

- Amounts paid to management agencies- Amounts spent on trade union fees- Handling the value of excess assets- Record prepaid revenue into corresponding sales revenue each period

- Deduct social insurance, health insurance, and community insurance according to prescribed rates

- Total amount of revenue received in advance during the period - Accounts payable, payable or payable

- Value of excess assets awaiting disposal - The amount paid or paid is greater than the amount due or payable and will be refunded

- 3382- Trade Union fees- 3383- Social insurance- 3384- Health insurance- In addition, accountants also use a number of other related account in the accounting process such as TK 111,112, 138

Personal income tax Salary payable

Deduct account receivable Account 335 Advance deduction of leave salary

Account 335 Calculate salaries for employees Account 338

Caculate BHXH directly for employees Deduct BHXH, BHYT, KPCĐ, BHTN

DIAGRAM 1.1: GENERAL ACCOUNTING OF SALARY

Soc ins must be paid instead Deduct Soc Med Unemploy ins of salary for employees included in Cost for Production and Business Account 111, 112 Account 334

Pay Soc Med Unemploy ins Deduct salary payments for according to regulations Soc Med Unemploy Ins for employees

Receive a refund from the BHXH agency that the business has paid

DIAGRAM 1.2: ACCOUNTING PROCEDURE FOR SALARY DEDUCTIONS 1.2.3 ACCOUNTING FOR PRE-DEPRECIATION OF LEAVE SALARY

Every year, according to regulations, workers on the enterprise's list are entitled to take leave and still receive full salary Vacation pay is included in production costs appropriately because it affects product costs If the enterprise arranges for workers to take regular leave during the year, the leave salary is calculated directly into production costs (like when calculating the main salary) If the enterprise does not arrange for workers to take regular leave during the year, to ensure that prices do not increase suddenly, workers' vacation wages are included in production costs through the planned deduction method At the end of the year, the planned amount of deductions will be adjusted to match the actual amount of leave salary Advance deduction of leave salary is only made for workers directly involved in production.

Deduction rate according to the salary plan of production workers = Total vacation salary payable to production workers according to plan during the year/Total main salary payable to production workers according to plan during the year.

Total vacation salary payable to production workers as planned during the year Number of production workers in the enterprise * average salary per production worker * Number of annual leave days per production worker.

- List of salaries and allowances for employees.

- The social insurance payment table is the basis for payment of social benefits paid on behalf of employees.

Account 335: Accruals In cases where some businesses have an irregular number of workers taking annual leave during the year or are seasonal production businesses, the accountant must use the method of deducting the vacation wages of workers directly involved in production The advance payment will be made regularly into the product price and considered an expense fees payable The calculation is as follows:

The amount of leave salary deductions for production workers

= Total vacation salary of production workers according to the yearly plan Total main salary payable according to the annual plan of production workers

* Actual wages paid to production workers Leave salary deduction rate (%)

= Total annual leave salary of production workers Total salary according to the annual plan of production workers

* 100 Salary level = Real salary * Percentage of leave deduction to pay leave salary TK 335: Accruals

- This account is used to reflect amounts payable for goods and services received from sellers or provided to buyers during the reporting period but not actually paid due to lack of invoices or insufficient documents , accounting documents, are recorded in production and business expenses of the reporting period (Circular 200/2014/TT- BTC)

• Structure and content reflected in TK 334

- Actual payments incurred have been included in payable expenses - The difference in payable costs is greater than the actual cost recorded as an expense reduction

- Payable expenses are estimated in advance and recorded in production and business expenses

* Main salary: Is the salary paid to employees during the time the employee performs their main duties, including salary paid at the basic level and accompanying allowances (responsibility allowance, area allowance).

* Additional salary: is the salary paid to employees during the time the employee performs tasks other than their main duties and the time the employee takes paid leave according to the regulations of the regime (vacation, closed due to production stoppage )

The division of salary into main salary and additional salary has important implications for accounting and salary analysis in product costs.

The main salary of production workers is associated with the product manufacturing process and is directly accounted for in the production costs of each type of product The secondary salary of production employees is not associated with the types of products should be indirectly accounted for in product manufacturing costs.

Actual leave salary Advance deduction of leave payable to employees money for production workers

The actual amount to be paid is The actual amount payable is less than the advance amount greater than the advance amount

DIAGRAM 1.3: ACCOUNTING FOR ADVANCE LEAVE SALARY

CONTENTS OF SALARY AND SALARY DEDUCTIONS IN THE

1.3.1 Salary and salary deductions auditing 1.3.1.1 Objectives of salary and salary deductions auditing

The audit objective of salaries and salary deductions is to collect evidence to confirm the honesty of businesses regarding salaries and salary deductions All material financial information related to items is presented in accordance with current accounting principles and accounting regimes Specifically:

For salary items and salary deductions, the auditor must collect evidence to confirm the reasonable truthfulness of salary operations and salary deductions, all financial information Material items related to items are presented in accordance with accounting principles and regimes.

The objective of existence and reality: Recorded salary transactions have actually occurred and salary expenses and unpaid salaries actually exist.

Full objective: This objective is to ensure that all transactions that have occurred are fully recorded In the opposite case, salary costs and payables as well as related assets will be presented incorrectly.

Classification and presentation objective: Salary expenses and payments to employees must be presented in appropriate accounts Wrongly reflecting accounts in salary costs such as direct labor costs, manufacturing overhead costs, insurance costs, and business management costs will affect the value of inventory as well as other assets related.

1.3.1.2 The basis of salary and salary deductions auditing

Salary audit and salary deductions play an important role in financial reporting.

Salaries and salary deductions are expenses that account for a large proportion of an enterprise's production and business costs, related to the cost of products, services or labor.

Salaries and salary deductions have a great influence on inventory valuation.

The salary cycle is a cycle where fraud can easily occur, causing businesses to lose money or use labor ineffectively.

1.3.2 The process of performing an audit of salary and salary deductions items

The tasks in the audit planning phase include the following basic tasks: 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 Audit.

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) b Get to know customers First of all, the collection of information and the legal obligations of customers.

With an audit of salary and salary deductions, it is necessary to collect legal documents and books such as labor tracking sheet, time sheet, salary sheet, payroll slip, salary payment declaration for each person, payment slip, salary payment order via bank

The second is to learn about the customer's business Understanding the characteristics of the client's business is very important, this ensures that the auditor has a complete view of the client from determining the focus of the work to meet the following job requirements 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 activities of the audited entity that, in the opinion of the auditor, have a material effect on the financial statements.

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 (VSA) c Study the internal control system of the audited entity and make a preliminary assessment of control risk

Studying the client's internal control system and assessing control risks helps the auditor to design appropriate audit procedures for the salary and salary deductions item, thereby assessing the volume and complexity of the audit Estimate the duration and determine the focus of the audit.

Auditors need to pay attention to the internal control system in two aspects:

- How to design: How is internal control for salary and salary deductions conducted?

- Operation: How is internal control for salary and salary deductions conducted?

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

- Actual observation of salary and salary deductions.

- Checking documents related to salary and salary deductions.

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

- Observe internal control procedures for salary and salary deductions.

- 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 salary and salary deductions.

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

Depending on the assessed level of control risk, the auditor may continue to conduct tests of controls or substantive tests to a reasonable extent When collecting customer information, the auditor may ask questions about issues of concern as follows:

- Conduct periodic inventory of salary and salary deductions and compare with accounting books.

- Regularly compare data between detailed books and general books. d Audit planning

An overall audit plan is a set of detailed and specific projections of the nature, methods, timing, and extent of audit procedures to be applied to an audit The overall audit plan is prepared by the audit team leaders and should be prepared for every audit.

This is the basis for setting up the audit program.

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)

Performing an audit is the process of using auditing technical methods appropriate to each specific audit object to collect audit evidence It is the process of proactively and actively implementing established audit plans and programs to provide authentic opinions about the honesty and reasonableness of audit objects on the basis of audit evidence Complete and reliable accounting.

After receiving the work assignment for each specific section, the KTV and KTV assistants will receive data records corresponding to the section and proceed to perform the work.

Performing an audit includes the following steps:

• Check the internal control system.

• Basic inspection of the property

• Basic check of equity and off-balance sheet accounts

• Basic check of business performance reports

METHODOLOGY OF AUDITING FOR SALARY AND

OVERVIEW OF AUDITING AND INFORMATICS SERVICES

2.1.1 Overview of Auditing and informatics services company limited

Auditing and Informatics Services Company Limited (MOORE AISC) is a large- scale legal independent auditing and consulting organization operating all over Vietnam AISC's headquarter is located in Ho Chi Minh City, Branches in Hanoi, Da Nang and Representative Offices in Can Tho, Hai Phong.

 Headquarter: 389A Dien Bien Phu street, District 3, Ho Chi Minh City.

 Website: http://MOORE AISC.com.vn

 Da Nang branch: 350 Hai Phong street, Thanh Khe District, Da Nang City

2.1.2 The process of formation and development of the Company

Established in 1994, MOORE AISC is one of the first independent auditing companies operating in the field of independent audit, accounting, and financial consulting and informatics;

November 2007 of the People's Committee of Ho Chi Minh City approved the plan to transform Ho Chi Minh City Auditing and Informatics Service Company into Auditing and Informatics Services Company Limited June 2000: MOORE AISC was also one of the first independent auditing companies allowed by the State Securities Commission to audit securities issuers and trading organizations; 2009 to present:

Member of Vietnam Association of Certified Public Accountants (VACPA) MOOREAISC is one of the first independent auditing firms allowed by the State Bank to audit credit institutions and commercial banks in Vietnam In June 2023, MOORE AISC joined and became an official member of World Moore Global - a network of auditing and tax consulting companies globally Therefore, the company changed its name to Auditing Company Limited MOORE AISC Mathematics and Informatics Services.

Joining Moore Global allows member companies to share knowledge, experience and resources with each other, thereby creating innovative benefits and added value for customers.

2.1.2 Operational characteristics of the Company

Types of services provided by the Company:

Independent audit and assurance services The company provides customers with the following services:

- Auditing of annual financial statements - Audit of financial statements for tax purposes and tax finalization services - Check financial information on the basis of pre-agreed procedures

- Review of financial statements - The audit of the completed investment capital settlement report.

- Operation audit - Internal control audit

Accounting consulting The company is providing the following accounting consulting services for businesses:

- Instructions for making and managing accounting vouchers - Guide and make bookkeeping

- Guide to preparing financial statements - Consulting on building an accounting system and organizing an appropriate accounting apparatus

- Consulting on building an appropriate management reporting system - Consulting on building accounting software

- Provide accounting services, prepare financial statements, prepare tax reports and other reports at the request of customers.

Valuation Service The company provided the following services:

- Determining enterprise value for equitization.

- Determining the value of assets contributed as capital to a joint venture orassociation.

- Valuation of assets for purposes of separation, merger, dissolution, bankruptcy.

Informatics services Giving advices on choosing informatics equipments, designing and installing computer network Providing with informatics equipments Supplying financial accounting software, managerial accounting for businesses operating in different sectors Giving consultancy and support for businesses in choosing and using effectively their management softwares.

2.1.4 Organizational and management characteristics of the Company 2.1.4.1 Organizational chart of the management apparatus

DIAGRAM 2.1: ORGANIZATION STRUCTURE AT MOORE AISC

Consulting Department Can Tho Branch

Hai Phong Branch Da Nang Branch

The branches of MOORE AISC Company operate almost independently of the head office in Ho Chi Minh City Therefore, the functions and operational tasks of the Da Nang branch are the same as the head office The branch will automatically sign the contract, implement the contract with the customer, then transfer the profit to the company's accounting In cases where large contracts are signed, the company will support the branch in terms of personnel as well as technology to implement the contract.

All branches of MOORE AISC have legal entities and are dependent accounting, performing obligations to the State such as paying corporate income tax, VAT, and a few other obligations independently at the locality where the branch is located.

DIAGRAM 2.2 ORGANIZATIONAL STRUCTURE OF MOORE AISC IN DA

2.1.4.2 Diagram of the Auditing Department

DIAGRAM 2.3: DIAGRAM OF THE AUDITING DEPARTMENT

Head of Auditing Department is the person responsible for planning and operating the operation actions of the audit department:

- Survey the customer situation and set the audit fee.

- Directly manage large-scale and complex audit contracts with high risk.

- Review the audit report before submitting it to the director for approval.

Deputy Head of Department: Support the Head of Department in assigning human resources to perform audit contract and operating the audit room.

Team leader: responsible for performing audit and development contracts.

Prepare audit reports, assign and guide assistants to execute contracts co-audit.

The audit assistant performs work under the guidance and direction of leader.

METHODOLOGY OF AUDITING ON SALARY AND SALARY

 2.2.1 Audit planning stage 2.2.1.1 Accept and maintenance of old customers and assess contract risk (A120) – Appendix 1

This is the first step of AISC's work performed in each audit, the client inquiry process helps the auditor in charge to get an overview of the customer's business performance, policies and applicable company rules At the same time, it is also the basis for the auditor to identify potential risks, control risks and to schedule and scope of audit procedures The collection of customer company information in each audit depends on customers.

For XYZ company, after understanding the relevant issues, the auditor and the audit firm evaluate the risk level of the contract as average, as a basis for making a conclusion that accepting maintenance customer.

2.2.1.2 Prepare audit contract and select audit team (A210)

For audits, the auditor needs to agree with the client on the terms of the contract before conducting the audit These terms are in writing and are communicated to the client The signing of the audit contract is the beginning of the audit, AISC considers the requirements of the client to plan the audit and assign appropriate labor for the audit The quantity and quality of the audit depending on the complexity of the work, the size of the client unit, and the specific requirements of each client.

The audit team at Company XYZ includes:

- Mrs Nguyen Thi Hiep: Deputy Director of Brand - Mrs Ho Thi Ha Lan: Head of Audit (Head of Auditing Department) And 3 members participating in the audit include:

- Mrs Nguyen Thi Hiep: Deputy Director of Branch/ Audit Team Leader - Ms Nguyen Thi Thanh Tu: Assistant auditor

- Mr Trinh Hoai Nghia: Assistant auditor The year-end audit will be carried out in 02 days, starting from February 6, 2023 to February 7, 2023 at the XYZ Company Office.

- Type of enterprise: Joint stock company- Line of business: Plastic manufacturing industry- Annual accounting period: starts 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.

2.2.1.4 Understanding the salary cycle and preliminary analysis of financial statements (A510) – Appendix 2

Through interviews with the client company's accountant, and from the company's salary regulations, the auditor collected preliminary information about the company salary cycle and salary deductions Preliminary research will help the auditor grasp the main information about the cycle, serving a preliminary assessment of the cycle's control risks to design appropriate control tests and basic tests.

Learn about key business aspects related to salaries and payables to employees:

• Business nature of the enterprise in terms of employing employees

• Labor usage situation during the year and expectations for the coming years

• Salary regulations, general conditions in labor contracts for each major type of employee, salary calculation method (product salary/time/revenue salary), how to determine salary fund, Allowances, overtime (if any), salary payment method (cash/cash in bank).

• Regulations on salary deductions (social insurance, health insurance, unemployment insurance, union dues), legal regulations related to labor and personal income tax.

Learn about applicable accounting policies:

Auditors need to clearly understand how accountants base their accounting on salary costs and salary deductions, how to classify labor costs into production costs, sales costs, and management costs (departments) Which are accounted for in Account 622, Account 6272, Account 6412, Account 6422)

Describe the salary cycle and payables to employees:

The auditor interviews the unit's accountant or reviews the unit's description, using narrative or flowchart methods to describe the comany salary cycle and payables to employees, from recruitment stage to salary payment stage, including control nodes in the cycle.

Review the design and implementation of key controls:

After understanding the control procedures that the unit designs for the salary and payables cycle to employees, the auditor evaluates whether the design of the client's control procedures ensures the control objectives of labor, reduce the risk of errors that may occur in the payroll and payables cycle to employees, then perform walk-through testing to evaluate whether the implementation of procedures is correct as designed.

For the control goal “Reality”:

Salary costs are costs incurred for actual employees working at the unit and the amount of work performed A possible error is that the unit may pay salaries to bogus employees or bogus workloads For the above risks, KTV has proposed control procedures to limit risks:

• Clear division of responsibilities between the direct management department (work monitoring), the human resources department (salary calculation) and the accounting department (salary payment).

• Must retain employee personnel records and assign a person responsible for periodically checking this record.

• The labor contract must be approved by a competent person.

• The human resources department must promptly notify the accounting department of employee resignations, accompanied by a resignation letter certified by the direct department head.

• The accounting department only pays salaries and records salary expenses when there is an approved Salary Sheet and Time Sheet.

• Cash salary payment sheet/Payment slip must have the signature of the employee receiving salary/remuneration.

For the control objective "Completeness", "Accuracy":

Salary costs and salary deductions are recorded fully and accurately Possible errors with this goal are that salary costs and salary deductions may be underrecorded, untimely, or due to incomplete timekeeping For this risk, KTV has proposed control procedures to limit risks:

• Salary calculation tables and salary deductions must be checked and approved by competent authorities.

• Timesheets/tracks of completed work volume must be fully updated and checked and approved by competent authorities.

• At the end of the month, time sheets and payroll sheets must be transferred to the accounting department and promptly updated in the accounting books.

• The allocation of salary costs to departments must be checked and supervised by an independent person.

Perform Walk-through test procedure:

KTV performs walk-through test procedures to check whether the salary cycle and salary deductions are performed as described or not MOORE AISC's KTV will choose a salary calculation and payment operation for any employee and collect labor contracts, timesheets, salary calculation sheets, salary payment tables, and records of reconciliation of various types of insurance risks related to that employee It will then be checked whether the control procedures for the process are carried out from beginning to end of the cycle.

Detailed information about documents related to operations such as labor contracts, timesheets, salary calculation sheets, salary payment tables, and insurance reconciliation records are checked after the KTV collects

Type of documents, vouchers Information about vouchers

Labor contract Employee labor contracts are checked

Timesheets The 1-month strike chart has the name of the selected employee Payroll Salary calculation sheet for 1 month

Table pay wages List of 1 month's salary payments to employees in cash or bank deposits Comparison reports of types of insurance

Notify the unit's social insurance, health insurance, and unemployment insurance payment results within 1 month

Table 2.1 Detailed information related to types of documents

Results of checking key controls: The auditor marks whether or not to implement key control procedures based on the collected documents.

Conclusion about internal control of the cycle:

After performing the preliminary assessment, the auditor summarizes the discovered risks and proposes further procedures for those risks The auditor then concludes a preliminary assessment of the unit's internal control over the salary and payables cycle to employees, assesses control risk, and then decides whether to perform control tests for this cycle no If control risk is assessed as low, the auditor will usually conduct control testing; if control risk is high, the auditor will not perform control testing but only perform basic testing.

For ABC company, the Auditor based on his judgment and gave internal control opinions on the salary and payables cycle to employees, which were generally designed in accordance with the control objectives and were implemented.

To understand the overall situation of business activities this year, KTV uses analytical tools to find unusual fluctuations in an item this year compared to last year, including payable items employees and other payables From there, auditors will be more cautious when determining the level and scope of application of other audit procedures.

Based on last year's audited financial statements and this year's unaudited financial statements of ABC company, the auditor calculates the percentage change in this year's targets compared to last year If the fluctuation is unusually large, the KTV will note it and find out the cause of that change.

2.2.1.6 Evaluation of the internal control system at the enterprise level (A610) – Appendix 3.

Determination of materiality and method of determining sample, sample

Materiality assessment is a very important step in preparing for the financial statement audit process.

Determining materiality levels for each client helps auditors plan audits more effectively From there, the auditor determines the audit evidence that needs to be collected when auditing the financial statements.

The determination of materiality at AISC is specifically defined in section A710:

Determination of materiality (Plan – Reality) The metric chosen to estimate materiality for XYZ is Total Assets Based on the results of learning about the client company and the client's own audit experience, the audit team leader will provide ratios to estimate the materiality level and calculate the materiality level shown in the table as follows:

This year's materiality level increased compared to last year due to a slight increase in assets compared to the previous year The company completes the relocation and investment in assets at another time.

Planning and designing the audit program (E430) - Appendix 5

Planning the audit 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 procedures Check that the accounting policies applied are consistent with the previous year and in accordance with the applicable financial reporting framework.

Prepare a summary data table to compare with the balance at the end of the previous year Compare the balance on the general data sheet with the balance sheet, general ledger, detailed books and working papers of the year before the audit (if any)

Analytical procedures Compare the balance of salaries payable, salary deductions payable this year compared to last year, the size of these payables in total liabilities this year with the previous year Find out the causes of large and unusual fluctuations

Compare the analysis of salary cost fluctuations this year with last year,fluctuations by month and by department (office management, workshop management,sales, direct labor, ), combined with fluctuations on personnel and salary change policies, revenue and profit targets, finished products, etc to evaluate reasonableness and detect unusual problems

Compare the fluctuations in expenses of union fees, social insurance, health insurance, and unemployment insurance to see if they are at the same rate of fluctuation as salaries.

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

Consider whether there are specific risks identified from performing analytical procedures that result in accounts payable balances and payroll deductions containing material misstatements.

Detailed inspection procedures For employee expense audits, the sample data source can be reconciled from general ledger balances to payroll, or reconciled from payroll to general ledger amounts.

Check the preparation of various employee expense items such as total salary, salary deductions (Social insurance, health insurance, unemployment insurance, community insurance) or allowances, etc with the ledger.

Select a sample to check salary months with unusual fluctuations during the year.

Check the allocation of salary costs and salary deductions between payroll and ledger to ensure salary costs have been appropriately allocated to production costs and business expenses.

For businesses receiving salaries according to the salary unit price or approved salary budget: The auditor makes an independent estimate of the salary budget and compares it with the salary budget that has been included in expenses, with the actual salary paid and with the approved salary Browser Request explanation of discrepancies and check for approval (if necessary).

Compare salary deductions (Social insurance, health insurance, unemployment insurance, community insurance) with settlement records payable during the year, check payment documents and determine the reasonableness of the remaining balance payable at the end of the year.

Reconcile social insurance and health insurance deductions between detailed books and social insurance and health insurance agencies

Compare the submitted numbers from the unit and the social insurance agency

Check whether social insurance deductions paid in the period are valid according to regulations

Check the provision of unemployment benefits

Audit implementation stage

Account 334 - payable to employees, the test is conducted through the balance of salaries, bonuses and other payments payable to employees Regarding the salary balance, it is essentially the salary that arises when the employee does not receive salary on the last working days of the year but leaves payment for the next period The time limit for calculating and paying salaries is consistent with each unit's policy.

Units must implement that policy consistently from period to period, from year to year If there are changes, the changes must be explained on the financial declaration.

Account 338 - Other payables and payables related to deductions on salaries for social insurance (3383), health insurance (3384), unemployment insurance (3386), and joint expenses (3382) The auditor will compare the balances on the expense accounts.

Details with data on the spreadsheet, deductions for social insurance, health insurance, unemployment insurance, and community insurance premiums and data on the declaration of payables on social insurance, health insurance, unemployment insurance, and community insurance premiums and compare with the cash expenses incurred on the documents pay In addition, the KTV also checks the time limit for calculating and deducting amounts on the salary and the time limit for payment of those amounts.

• The auditor prepares a detailed summary table and applied procedures:

• Check whether the accounting policy applied is consistent with the previous year and in accordance with the applicable financial reporting framework and presentation

• Check whether the applied accounting policy is implemented throughout the audit process

This procedure is shown in section A.1, part of working paper E440, the auditor conducts interviews with the board of directors or chief accountant, collects the company's regulatory documents and checks the explanations of this year's financial statements compared to the current year's financial statements last year.

• Create a summary data table to compare balances The auditor will check the general reasonableness by comparing the balances on the General Data Table (summary of unpaid monthly salaries at the end of the year) with the Balance sheet, Ledger, and detailed accounts payable to employees Account 334 is deducted according to salary for social insurance, health insurance, unemployment insurance, and community insurance At the same time, compare the year-end balances of the above accounts taken from the of the previous year's audit or the previous year's audit report The auditor then compares the balance at the end of the previous year on the audit report and the balance at the beginning of this year on the unit's financial statements.

Tên khách hàng: CÔNG TY CỔ PHẦN E440

Ngày khóa sổ: 31/12/2022 Người thực hiện 0 07/02/2023

Nội dung: THỦ TỤC CHUNG - Phải trả người lao động và các khoản trích theo lương Người soát xét 1 0 13/02/2023

Người soát xét 2 0 20/02/2023 Người soát xét 3 0 27/02/2023

Nguyên tắc kế toán khoản phải trả người lao động

- Tài khoản 3382 - Kinh phí công đoàn: Phản ánh tình hình trích và thanh toán kinh phí công đoàn ở đơn vị.

- Tài khoản 3383 - Bảo hiểm xã hội: Phản ánh tình hình trích và thanh toán bảo hiểm xã hội ở đơn vị.

- Tài khoản 3384 - Bảo hiểm y tế: Phản ánh tình hình trích và thanh toán bảo hiểm y tế ở đơn vị.

- Tài khoản 3386 - Bảo hiểm thất nghiệp: Phản ánh tình hình trích và thanh toán bảo hiểm thất nghiệp ở đơn vị.

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

Tài khoản này dùng để phản ánh các khoản phải trả và tình hình thanh toán các khoản phải trả cho người lao động của doanh nghiệp về tiền lương, tiền công, tiền thưởng, bảo hiểm xã hội và các khoản phải trả khác thuộc về thu nhập của người lao động.

Tài khoản 334 - Phải trả người lao động có 2 tài khoản cấp 2.

- Tài khoản 3341 - Phải trả công nhân viên: Phản ánh các khoản phải trả và tình hình thanh toán các khoản phải trả cho công nhân viên của doanh nghiệp về tiền lương, tiền thưởng có tính chất lương, bảo hiểm xã hội và các khoản phải trả khác thuộc về thu nhập của công nhân viên

- Tài khoản 3348 - Phải trả người lao động khác: Phản ánh các khoản phải trả và tình hình thanh toán các khoản phải trả cho người lao động khác ngoài công nhân viên của doanh nghiệp về tiền công, tiền thưởng (nếu có) có tính chất về tiền công và các khoản khác thuộc về thu nhập của người lao động

Ngày khóa sổ: 31/12/2022 Người thực hiện 07/02/2023

Nội dung: Bảng số liệu tổng hợp các Người soát xét 1 13/02/2023

Phải trả người lao động và các khoản trích theo lương Người soát xét 2 20/02/2023

Giấy tờ Số dư cuối kỳ Số dư cuối kỳ Số dư đầu kỳ

TK Diễn giải chi tiết Trước KT Sau KT Sau KT

334 Phải trả người lao động - - - -

TB,GL: Khớp với số liệu trên bảng CĐPS và Sổ Cái c/c TB,GL vvv xxx PX vvv: Tham chiếu đến bảng tổng hợp điều chỉnh kiểm toán B510 E412 B310 B380 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:

SL theo kiểm toán SL theo số đơn vị Chênh lệch Ref

334 Phải trả người lao động - - -

Không phát sinh chênh lệch số đầu kỳ

Kết luận: Chấp nhận số đơn vị Đ/chỉnh thuần

Figure 2.2: Summary table of payables to employees and salary deductions 2.2.2.2 Perform analytical procedures:

Analytical procedures will help auditors check the change in this year's balance compared to the previous year if the rate of change this year is compared to the previous year KTV will pay attention and select detailed tests related to those abnormalities Below are some analytical procedures MOORE AISC's auditors use in the process of auditing salaries and salary deductions.

• Compare the balance of accounts payable to employees and other accounts payable this year compared to last year combined with analysis of fluctuations in total liabilities.

• Compare changes in salary costs this year compared to last year, every month of the year on the basis of combining with changes in personnel and salary change policies, evaluate the reasonableness.

• Estimate social insurance, health insurance, and unemployment insurance according to regulations and compare with unit data If there are differences, the KTV will find out the reasons for those differences.

Criteria Beginning End of term Difference Ratio

Ratio of liabilities to employees/Total liabilities 0% 0% - 0%

Table 2.3 Change in balance this year compared to last year

• The amount deducted from salary at the end of the period has no balance because: during the year, the unit has paid it all.

• There is no change in salary deductions between the beginning of the period and the end of the period because the business has paid it all

Table 2.4 Change in salary expense ratio this year compared to last year

• Labor at the beginning of this year decreased sharply compared to last year, leading to a decrease in salary costs in the first months of the year because at the beginning of the year the unit had not yet gone into production, but by August the unit had gone into production, so the number of workers was Labor increased again and salary costs also increased compared to the first months of the year.

TOTAL UNION SOCIAL HEALTH UNEMPL INS FOR Total

Estimated number of social insurance deduction costs (auditor)

Accounting number of deduction unit

Table 2.5 Estimated recalculation of insurance deductions

Ngày khóa sổ: 31/12/2022 Người thực hiện 0 07/02/2023

Nội dung: Phải trả người lao động và các khoản trích theo lương Người soát xét 1 0 13/02/2023

SDCK SDĐK Giá trị Tỷ lệ

Tổng nợ phải trả (CĐKT) 48.796.932.232 21.706.712.688 27.090.219.544 125%

Tỷ lệ nợ phải cho NLĐ/Tổng nợ phải trả 0,00% 0,00% - 0%

- Không có biến động các khoản trích theo lương giữa đầu kì và cuối kì do doanh nghiệp đã thanh toán hết

- So sánh phân tích biến động chi phí lương năm nay với năm trước kết hợp với biến động về nhân sự (bao gồm lương theo bảng lương + tiền ăn ca)

Số lao động Chi phí lương Số lao động Chi phí lương

Bộ phận sản xuất trực tiếp

Bộ phận sản xuất chung

Bộ phận quản lý doanh nghiệp Tổng Tham chiếu

-> Trong năm 2022 6 tháng cuối năm đơn vị bắt đầu sản xuất nên phát sinh chi phí sản xuất

Kỳ nay Kỳ trước Chênh lệch

722.788.600 1.233.750.050 (510.961.450) -> Chi phí tiền lương năm nay giảm so với năm trước nên phần chi phí BHXH, BHYT và BHTN giảm theo tương ứng

Tổng quỹ lương năm nay KPCĐ BHXH BHYT BHTN BHTNLĐ, BNN Tổng

Số ước tính chi phí trích (KTV) 70.136.800 876.710.000 157.807.800 35.068.400 - 1.139.723.000

Số hạch toán đơn vị trích 69.792.800 1.159.598.100

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

COMMENTS AND SOLUTIONS TO COMPLETE THE

STATEMENTS AT THE BRANCH OF MOORE AISC AUDIT &

INFORMATION SERVICES COMPANY LIMITED IN DA NANG 3.1 EVALUATION OF THE CURRENT STATUS OF THE AUDIT OF SALARY AND SALARY DEDUCTION ITEM IN THE AUDIT OF FINANCIAL STATEMENTS AT AT THE BRANCH OF MOORE AISC AUDIT

& INFORMATION SERVICES COMPANY LIMITED IN DA NANG 3.1.1 Advantage

AISC has built a generally reasonable, highly effective and relatively strict audit process for operating departments in general and salary operations and salary deductions in particular The actual work steps are detailed but not rigid Auditors can flexibly apply work steps appropriate to each type and size of business.

Through the process of learning and observing the audit of the salary operations and salary deductions at Company XYZ, the company achieved the following advantages:

 During the audit planning stage The company has developed an appropriate audit plan, complying with Vietnamese audit standards 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.

Find out customer information: the company finds out customer information based on available working papers The sample includes the following contents: understanding of the field of operation (issues about business lines and industry trends, legal factors); Understanding of the characteristics of the business (field of operation, type of ownership and management apparatus, investment and financial activities of the enterprise); understanding of applicable accounting policies(Accounting period, currency, applicable accounting standards, and regimes, major accounting policies); objectives, strategies, and related business risks… This information is the basis for the auditor to initially assess materiality and risks, thereby developing an audit plan.

The process of developing an audit plan: The auditor's professional prudence requires the auditor to fully perform the steps of this stage as the basis for building audit programs, ensuring scientific and effectiveness In this step, AISC combines the collection of information about the internal control system at the enterprise-wide level and the client's business situation, thereby determining the audit objectives and approaches The audit strategy and appropriate approach have provided an important direction for the overall planning and design of the audit program At the same time, the identification of the audit team and the division of tasks specifically suitable for the auditors have helped AISC receive high appreciation from customers for the professional working environment and enthusiastic auditors in the company job.

The audit plan includes the overall audit plan and audit program design The overall audit plan at AISC is also built according to the available form to make it easier to work, this form includes information about customers that the auditor has learned in the above steps Collecting customer information, preliminary analysis of financial statements, assessment of materiality, assessment of the internal control system at the enterprise level… These contents are included in the audit plan fully and strictly AISC's audit program is specifically designed for each item and the necessary procedures to implement the overall audit plan However, this audit program is built-in common which means that it can be applied to all audits The audit steps at AISC are conducted by this process to shorten the time and progress of the work, the work is carried out independently and effectively to provide authentic information to serve for the preparation of the audit report.

 During the audit implementation stage The auditor fully performed the procedures according to the established audit program:

For the implementation of general procedures: The auditor collects a detailed list of payables to employees and salary deductions and compares them with the data summary table, interviews employees who usually handle these payments transactions payable to employees and salary deductions on whether there are situations that require the unit to prioritize payment or there are unusual terms or there are unrecorded transactions or unusual transactions and arise currently payable to related parties.

Regarding the implementation of analytical procedures: The auditor analyzed the situation of salary cost fluctuations this year compared to last year, fluctuations by month and by department and made comments, assessments, and analysis of fluctuations on union dues, social insurance, health insurance and unemployment insurance to see if they have the same level of volatility as wages Auditors always strictly follow these procedures to collect the most authentic evidence.

 At the end of the audit This is the final stage of the audit, at this stage, the auditors usually carefully perform the work done to draw audit conclusions for each item The auditor will summarize the errors, make adjustment entries, discuss with the client to find out the causes, agree on opinions to conclude, and raise issues that need attention in the following audits After each audit, AISC always advises the client company to help the business improve the quality of its operations and help orient the financial activities of the client During the audit as well as after the audit report is issued, AISC auditors always communicate with customers and collect unusual transactions to make appropriate adjustments.

 Perform audits Non-documentary audit methods are not fully utilized when assessing control risk MOORE AISC has used document checking methods fully and reasonably in auditing salaries and salary deductions, which have been effective However, there is still a problem in the non-document inspection method, specifically the method of investigating and surveying timekeeping that has not been implemented but the auditor collects timesheets that have been prepared This can affect the accuracy of salary data and affect the information in financial reports.

 Perform basic testingIn fact, MOORE AISC has specifically designed a control test for the salary cycle and salary deductions However, the performance of control tests currently stops at an average level even when the initial control risk assessment is low, leaving most of the audit time for substantive tests and It is not really effective when the number of samples selected is judgmental and not highly representative On the other hand, interviewing the unit's accountant still takes a long time and requires many interviews.

The company has established a common template for the audit program for all types of commercial, manufacturing, and service companies, but has not yet built an audit program for each specific type of business Each auditor must be flexible and perform accordingly when auditing.

 Staff Besides, the end of the year and the beginning of next year will be the peak period of the audit season MOORE AISC staff is limited and customer demand is high, so each person's workload will be high and time is limited, so KTVs have to work overtime, so it is difficult to ensure that some procedures will be overlooked during the process auditing process.

3.2 SOME SOLUTIONS TO IMPROVE THE AUDIT OF SALARY AND SALARY DEDUCTIONS

Through the process of being facilitated by the Branch of MOORE AISC Auditing and Information Technology Services Company Limited in Da Nang and having clearer access to the audit process at the Branch's client units, I have a Some proposals to improve the quality of the company's salary audit process and salary deductions.

Timesheets are important documents that directly affect the amount payable to employees To assess control risk more appropriately, in addition to checking control traces, auditors should approach the foreman to monitor the foreman's timekeeping and interview employees about time control of the foreman When the auditor approaches the investigation unit for supervision, the KTV must be careful not to reveal it.