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THEOREOTICAL THESIS
Overview of auditing
An auditor's primary role is to verify the accuracy of financial statements, ensuring that organizations present a true picture of their financial health This process, known as an audit, involves gathering and assessing evidence related to the financial information provided by accountants Ultimately, the auditor's goal is to determine the compliance of this information with established standards and report on its reliability.
The State Audit Office conducts audits in compliance with the law and at no cost, primarily focusing on state-owned enterprises as the main subjects of these evaluations.
Independent audits are carried out by specialized auditors from external firms, focusing primarily on the examination of financial statements These audits not only enhance the credibility of the financial reports but also offer additional financial and economic services tailored to client needs As a result, independent audits foster trust among third parties and potential investors.
Internal auditors are essential members of a company or organization, conducting audits as requested by the Board of Directors While their reports primarily serve internal purposes, they often lack external credibility due to the auditors being internal employees influenced by the company's management.
Audit evidence consists of the information and data collected by auditors during their audit processes This evidence is essential for forming conclusions about whether financial statements are presented fairly and comply with the relevant financial reporting frameworks.
Audit evidence is collected by auditors during all phases of the audit process, including planning, execution, and conclusion To effectively gather this evidence, auditors employ a variety of technologies and procedures tailored to their specific needs.
Sufficiency refers to the adequacy of the information provided, enabling auditors to make accurate assessments For instance, relying solely on a single bank statement would be insufficient for auditors to evaluate a company's financial status effectively.
• Reliability: Reliability seeks to determine whether or not the material can be trusted and counted on for forming an opinion Reliability typically factors from the source of the information
• Source: The source of accounting evidence can be obtained directly from the company or externally Externally sourced information is generally regarded as more trustworthy and is therefore preferred
* Financial statements and current status of assets and economic operations arising
Auditors are required to conduct a thorough review and evaluation of accounting books, documents, processing methods, the rotation of accounting vouchers, and the management of assets, alongside current economic and financial activities, to provide accurate assessments and remarks on financial statements.
When evaluating accounting documents, auditors need to evaluate on the following aspects:
- The reality of accounting information, or the reality of assets and the truthfulness of economic transactions arising
- The legality and reasonableness of these accounting documents
- The compatibility between accounting documents with the actual operating status of the unit
- The reliability of accounting documents
When evaluating the current financial and economic performance of the auditor, it is necessary to pay attention to the aspects
The legality and reasonableness of an activity require adherence to applicable laws, policies, and regulations, ensuring that it aligns with the operational scope of the organization.
- Economic and financial activities must comply with general rules It is impossible to go against, against the law, there cannot be a unit of business with the purpose of loss
- Economic activities must be economical and planned
* Current status of compliance (compliance with regulations of competent authorities, laws, policies, regulations )
Auditing extends beyond just financial statement evaluations; it also encompasses compliance audits that assess the adherence to policies, regulations, and principles This has led to the emergence of compliance audits, which are increasingly integrated with traditional financial statement audits.
* The effectiveness, efficiency and economy of the operation
Auditing has significantly evolved across various finance and legal sectors, emphasizing compliance and policy implementation It has also gained traction in the non-production and business sectors, particularly in effectiveness and efficiency audits Presently, both internal and state audits prioritize evaluating the effectiveness, efficiency, and economy of operations, making these factors the central focus of modern auditing practices, especially within the non-manufacturing domain.
The essence of an audit lies in its independent external inspection conducted by highly skilled professionals who bear full legal responsibility for their assessments of information reliability This process is overseen by the state and society, ensuring that public information complies with widely accepted social norms and principles.
• Auditing activities must be based on common standards
Any individual or organization that misrepresents public information to deceive others in socio-economic relations will face legal consequences The law mandates accountability for those who engage in such deceptive practices, ensuring they are held responsible for the inaccuracies and any resulting damages.
Auditing, initially focused on verifying the accuracy of public financial statements, has evolved significantly alongside the development of the market economy Today, auditors not only assess financial statements but also conduct due diligence and evaluate the reliability of information related to management activities and regulatory compliance As a result, many experts define auditing as the process by which an authorized independent individual collects and evaluates evidence of quantitative information pertinent to an economic organization, with the aim of identifying and reporting its alignment with established standards.
The audit fundamentally serves to verify and express opinions, with its core function centered on confirming the accuracy of documents and the legality of financial operations This verification is essential to the inception, existence, and growth of auditing practices, continuously evolving based on the specific audit subject In the context of a financial statement audit, verification encompasses two key aspects.
Overview of auditing of revenue
VAS 14 defines revenue as the total economic benefits accrued by an enterprise during an accounting period, resulting from its regular production and business operations, which contribute to the growth of equity.
• For sale goods and services
Revenue recognition occurs when several conditions are met: first, the enterprise must have transferred the majority of risks and benefits of ownership to the buyer Additionally, the enterprise should no longer manage or control the goods as the owner Revenue recognition is valid only when it can be measured reliably, and if the contract allows for returns, recognition happens only when the return conditions are no longer applicable Furthermore, the business should have received or expect to gain economic benefits from the sale, and the costs associated with the sales transactions must be identifiable.
The invoice date for a service is determined by the completion of the service, irrespective of payment status If payment is received before or during the service, the invoice date will reflect the collection date.
1.2.3 Operating procedures in revenue audit
1 Compare sales and sales returns, the ratio of sales deduction items to total sales between this year and the previous year, explain fluctuations and assess the risks there are material error due to fraud
2 Analyze the volatility of total revenue and revenue by activity type between this year and the previous year, explain the abnormal fluctuations and assess the risks of material misstatement due to fraud
3 Compare the sales and service offerings of each product / category between the plan and the implementation Explore and collect explanations for differences
4 Compare the sales of goods and the service provision between months (quarterly) of the year / period Consider whether the fluctuation of sales and service delivery compared to the entity's business situation is appropriate (on general market situation, sales policies, business performance of the entity units in particular) Note to compare the year-end sales with the first months of the year
1 Collect a summary of sales by customers, groups of goods and services provided by months in the year: Check with relevant documents: ledger, detail book, reports of sales department, export department, etc about quantity, value and explanation of difference (if any)
2 To compare the compatibility between the inventory of goods and finished goods on the import-export report with the quantity on the sale report Find out the cause of the difference, if any
3 To compare the recorded revenue with the revenue according to the VAT declaration in the year Explain the difference sample the sales recorded for the year and check to the relevant original documents
1.2.4 How to determine audit risk
Audit risk is the combination of different risks faced during the audit process To maintain overall audit risk within acceptable limits, auditors must evaluate the risk associated with each component of the audit.
Audit risk = Inherent Risk x Control Risk x Detection Risk
Inherent Risk refers to the potential for significant misstatements in financial statements caused by errors or omissions that occur independently of control failures This risk arises from various factors that can lead to inaccuracies, which are evaluated separately when assessing control risk.
- Control Risk is the risk of a material misstatement in the financial statements arising due to absence of failure in the operation of relevant controls of the entity
- Detection Risk is the risk that the auditors fail to detect a material misstatement in the financial statements
The audit of sales and service provision must align with the primary goal of the financial statement audit, which is to ensure the reliability of the audited financial statements.
The primary audit objective is to gather adequate and appropriate evidence to verify the reliability of financial information pertaining to sales and service provision Additionally, pertinent information and documentation are supplied to support the auditing of other cycles and items.
1.2.6 Some cases of frauds and errors can occur when auditing revenue
The recorded revenue of the enterprise appears inflated, as it includes amounts not yet qualified for recognition This discrepancy arises from the accounting documents reflecting a higher revenue figure than what is actually realized.
+ The buyer has paid in advance but the enterprise has not shipped or provided any services
+ The buyer has advanced money, the enterprise has shipped or provided services but has not handed over the ownership of goods or provided unfinished goods services
+ Calculated data and recorded errors to increase revenue compared with the accounting books
+ Accounting for converting sales of goods with high value-added tax rates to low- value goods
+ Accounting all the revenue received in advance for many accounting periods into the revenue received in cash period
The recorded revenue does not accurately represent the true financial situation of the enterprise, as certain items that qualify as revenue have not yet been documented in the accounting books Additionally, discrepancies exist due to the revenue reflected on accounting vouchers being understated.
OVERVIEW ABOUT EASTERN AUDITING LIMITED COMPANY
General introduction about Eastern auditing limited company
2.1.1 Historical of formation and development of company
Name of company: Eastern auditing limited company
Abbreviation: Eastern Auditing Co Ltd
Main operation: Auditing of the enterprise’s financial statements
Eastern Auditing Company, established on August 11, 2005, is a professional consulting, accounting, and auditing service provider, originally incorporated as an Oriental audit partnership with the business number 4105000006 On October 10, 2009, it was renamed Eastern Auditing Limited Company, receiving business license number 0309430590 from the Department of Planning and Investment The company's head office is located at 908 Indochina Park Tower, 4 Nguyen Dinh Chieu Street, Da Kao Ward, District 1, Ho Chi Minh City, Vietnam.
Most employees at the company hold degrees in Economics, Law, or Accounting and have prior experience in accounting, auditing, and business management The company emphasizes continuous knowledge enhancement for its staff Eastern Auditing Limited operates across the nation, providing auditing services for businesses in various economic sectors.
Eastern Auditing Limited Company has been recognized by VACPA since its inception as a qualified provider of audit services Over the years, it has strengthened its presence in the domestic market, becoming a well-known brand among numerous businesses.
The company offers a comprehensive range of auditing, accounting, financial consulting, and tax consulting services tailored to meet the needs of diverse clients in the economic sector By consistently enhancing its reputation and service quality, the firm is not only attracting a growing customer base but also strengthening its competitive edge amidst the increasing number of audit firms This strategic approach is driving the expansion of the company's scale and market presence.
Overview of business organization
To achieve the specific goals so they have given the following principle:
Effective business planning involves securing high-quality signed contracts while enhancing diplomatic relations and marketing strategies to broaden market reach It is essential to maintain a consistent auditing procedure that ensures compliance with evolving accounting standards, auditing practices, and newly issued circulars and decrees.
To enhance management skills and leadership capabilities within the department, it is essential to ensure that operational efficiency meets customer needs while promoting sustainable development during business growth and expansion.
The company provides comprehensive training programs and professional classes to enhance employees' auditing skills and ethics By continuously updating and disseminating new documents, regulations, and policies, the organization ensures that employees remain knowledgeable and compliant with the latest auditing standards and principles.
Eastern auditing limited company’s performance : services , customers
Auditing services involve a systematic process that adheres to Vietnamese international auditing standards These standards mandate that audit work is meticulously planned and executed to provide a high level of assurance.
Audited financial statements are essential for ensuring the accuracy and reliability of financial information, which aids users in making informed decisions and mitigating potential risks The auditing process allows auditors to identify and communicate any limitations in the accounting and business management systems, often through a management letter, thereby assisting enterprises in enhancing their accounting and auditing practices.
Financial information synthesis services are conducted in compliance with Vietnamese accounting law, standards, and tax regulations These services involve the Board of Directors preparing financial statements based on the selected accounting system, which accurately reflects the company's financial performance This information is essential for business management, as it aids in decision-making to foster growth and mitigate potential risks.
Financial advisory services involve a comprehensive evaluation of a business's current financial status, taking into account historical data and future projections This includes cash flow assessments and analysis of key indicators related to assets, liabilities, and capital The goal is to develop strategic solutions for challenges such as capital raising and financial restructuring, ultimately optimizing the business's financial health for enhanced operational efficiency Additionally, the financial advisory process encompasses a thorough review of existing financial practices.
27 the effectiveness of existing investment project, thenceforth assessing whether project need to be adjusted, narrowed or transformed
Management consulting services analyze a company's existing management system to identify limitations and inefficiencies in the utilization of human and other resources By doing so, business managers can create a project aimed at enhancing or transforming the current management framework to improve overall effectiveness.
Investment consulting services support enterprises in launching new investment projects or expanding existing ones by leveraging accumulated human, financial, technological, and experiential resources By analyzing the enterprise's current situation and the dynamic global economic landscape, the consulting firm collaborates with the Board of Directors to identify optimal investment strategies Once a plan is established, they assist in resource allocation, earnings predictions, and risk assessment to develop comprehensive investment projects Throughout the construction and operational phases, the consulting firm provides ongoing advice to address any changes or challenges that may arise during project implementation.
2.4 Management organizational structure of Eastern audit limited company
2.4.1 Organizational apparatus in the company
The organizational structure of company :
❖ Board of director : Control all activities of company
The auditing department is led by audit management, which is responsible for developing tailored audit plans for each client and overseeing the audit report timeline Supporting this leadership, audit assistants carry out specific auditing tasks to ensure thorough and effective audits.
❖ Accounting department : This department is responsible for recording and handling arising transactions and providing information to management, storing documents, customer records, archiving record, audit reports of the audited entities
The Consulting Department, led by the head of consult management, is responsible for providing expert guidance to customers through its team of counselors Additionally, this department plays a crucial role in disseminating new circulars and decrees throughout the company, ensuring that all staff are informed of the latest updates and regulations.
❖ Marketing department : Search for customers, provide information about the services of Eastern audit limited company, perform transactions and customer care
2.5 Organization of accounting, auditing department at Eastern auditing limited company
2.5.1 Organization of accounting department of company
❖ Chief accounting (as a general accountant): The leader of accounting department, responsible for all activities of this department as general management and cover
29 whole activities relate to financial, accounting, handle the entire financial situation of the company’s to advise director to make decision on corporate financial policies and plan
❖ Treasurer: Keep the cash fund and take full responsibility for any losses that occur
Ensure that the cash balance in the funds consistently aligns with the balance in the bookkeeping records Execute basic banking transactions, including withdrawing funds, depositing cash into the bank account, maintaining supplementary records, and paying taxes to the state budget.
❖ Accounting liabilities: Keep track of customer’s debts for timely handling
Payroll accounting involves systematically documenting and accurately reflecting the current status and changes in employee numbers and quality It ensures timely and precise calculation of salaries, bonuses, and allowances due to employees, thereby adhering to established policies and regulations.
2.5.2 Organization of auditing department of company
❖ Chief auditing: Responsible for making audit plan for each specific customer, responsible for signing audit report
The audit leader team consists of highly experienced auditors appointed by management to oversee specific audit engagements Their responsibilities include reviewing audit documentation, identifying essential audit procedures, and engaging in discussions with clients to ensure a thorough and effective audit process.
❖ Auditor: Who is assigned the responsibility of planning the audit, directly administering the audit and drafting audit reports for approval superior authorities
❖ Audit assistant: These assistant for auditor and often perform in detail content for the audit program.
REAL SITUATION OF REVENUE AUDITING IN XYZ
Overview about process of auditing of company
The auditor's process of approaching customers to obtain information needed to understand their needs, assess service availability and other matters such as audit time, audit fees, etc
New customer Pre-planning stage Deal with customer
Planning stage Signed auditing contract
An audit process of a company's financial statements
Test of control Preliminary assessment of audit risk
Implementattion analytical stage of audit procedure
Design and conduct test of control
Synthesis, Report Test of detail
The company regularly reaches out to former clients to secure audit contracts for the current year, while simultaneously updating information to assess existing customers This process allows auditors to evaluate the necessity of conducting audits in the upcoming quarter or year, providing them with the flexibility to adjust their audit plans or programs as needed.
Upon receiving a client's call or invitation for an audit, the auditor should carefully assess the reasons for the audit and the specific requirements of the customer This initial evaluation includes analyzing the complexity of the business and the terms of the co-audit agreement The auditor must consider the associated risks and responsiveness before accepting the contract, ensuring informed decision-making regarding new clients and potential transactions After gaining a general understanding of the customer's operations, the team leader will compile a survey report for the director's review, ultimately guiding the audit decision.
When seeing that an invitation to an audit can be accepted, the accountant will discuss and agree with the client on some of the following:
❖ Purpose and scope of auditing
❖ Estimate time for contract performance
❖ Provide accounting documents and facilities necessary for audits
❖ Send a quote letter to the client and negotiate an audit fee
Upon the director's review and approval of the audit, the accounting department issues a quotation to the customer If the customer disagrees, the company engages in further negotiations to ensure the highest quality of service is offered This collaborative agreement lays the groundwork for signing the audit contract, which is prepared by the company in compliance with Vietnamese Accounting Standards.
The stage of collecting information about business performance characteristics, internal control, determining materiality, risk assessment, etc to prepare detailed audit plans and audit programs
The auditor assesses the client company's internal control system by conducting observations and interviews, summarizing the gathered information, which aids in the evaluation process and is documented in the audit file.
3.1.3 Implementation stage of the audit
Before conducting the audit, the auditor requires the audited entity to prepare the necessary documents and steps to audit the following:
❖ Audit of Inventory and Prime cost
❖ Audit of Fixed asset and Depreciation
❖ Audit of Revenue, Net Income
• About the internal control system
Auditors often use questionnaires to consider whether audit procedures are designed and implemented
The questionnaire employs a yes/no format to assess the effectiveness of the internal control system; a "yes" indicates a robust system, while a "no" highlights its weaknesses Specifically, the evaluation focuses on Revenue and Accounts Receivable (AR) through targeted questions.
2 Have checked the validity of receipt?
Is the cashier independent from the accountant?
Whether to conduct a comparison between the fund book and general diary?
5 Whether credit on sale is approved?
Whether or not to prepare a periodical debt report?
Have invoices are checked before deliveried to clients?
The implementation of discount and discount pricing policies has been closely examined?
Whether credit on sale is compared?
Have compare between balance sheet of Account Receivable and the ledger?
• Preliminary assessment of audit risk
Evaluating the effectiveness of an internal control system is crucial for preventing and detecting material failures When the risk of control is deemed low, auditors will determine the necessary control tests to gather evidence of the internal control system's effectiveness This assessment is foundational, as it allows auditors to appropriately limit the scope of their substantive tests, which include immediate basic tests at the required level The evaluation process is inherently subjective, relying heavily on the auditor's judgment and experience.
• Design and conduct test of control
With Revenue and Account Receivables has the following test of control with these reasons: Select samples from invoices issued during the period:
➢ Comparison with orders, accounting documents, etc to collect evidence that the invoice is made on the basis of the existence of a transaction
➢ Check the review signature and approval facility to see if the sell-off is approved before the goods are shipped
➢ Compare surveys and affirm cost list at each time
❖ This test is assemble prove of control methods related to the total and exact recording of exchanges on bookkeeping books
Reviews and records of returned or damaged goods must be supported by numbered archives, thoroughly examined, and signed by the appropriate authority, ensuring a clear separation from investment or bookkeeping activities.
❖ Check the compromise and survey the contrast dealing with
The auditor makes a revenue analysis table to compare the revenue between the months with the difference or not
Comparing the revenue between periods, months, if there is an unusual difference, consider the cause or error Compare gross interest rate in industry and years ago
➢ Check the truthfulness of sales
➢ Check out full record of sales
➢ Check the accuracy of the recorded amount of sales
➢ Check whether sales are properly recorded
➢ Check the revenue classification for the purpose of ensuring there is no misleading information on the financial statements
- Evaluate whether the audit plan is being implemented effectively or not
- Consider whether the auditor's assessment and discoveries are accurate, well- grounded, and sufficient appropriate prove
- Assess whether the audit target is met or not, make an audit report(finished auditing)
An audit report outlines the process of aggregating revenue for management and evaluating audit evidence Auditors must synthesize identified material misstatements to assess their materiality and implement corrective actions Ultimately, the auditor will evaluate the impact of the revenue audit findings on the financial statements' conclusions and reflect on the overall revenue audit results.
Actual application of revenue auditing process at XYZ company by Eastern
3.2.1 Overview about operation of XYZ company
3.2.1.1 General introduction about XYZ company
3.2.1.2 Overview of customer business activities
Founded in September 1998, XYZ Company originally operated as a garment export factory and transitioned to an equitized entity in August 2005 The company specializes in exporting a variety of products, including down jackets, down vests, padded jackets, pants, shorts, children's clothing, and labor uniforms, to challenging markets such as Japan, Europe, and Asia.
Over 20 years of operation, the company has always followed the motto "Good quality, competitive price, on-time delivery, mutual benefit"
The company's main business is garment and textile
3.2.1.3 Overview of internal control system of revenue
The company has a policy of selling to customers (30 - 45 days) for loyal old customers, usually orders with a value of less than 300 million VND need approval and review from superiors
For goods that are returned or discounted due to incorrect type or quality, it is essential to obtain approval from an authorized person Additionally, a record confirming the returned sale or price adjustment must be maintained for the shipment These items are monitored separately to ensure compliance with return policies.
37 accountant in order to adjust the selling price, and at the same time record a reduction of the Account Receivable
3.2.2 Process of revenue auditing at XYZ company
In June, August, and October, revenue saw significant increases, each exceeding 300 million, with December marking the highest peak Consequently, the audit meticulously analyzed the factors contributing to this month-over-month revenue growth.
❖ Analysis procedure for revenue from financial activities
The revenue this year is quite high compared to the previous year, the revenue is 20.07 times higher
At the end of the fiscal year, Company XYZ evaluates the interest receipts from its customers and reviews audit records to assess exchange rate differences related to payables from the previous year, particularly influenced by its customer sales policy.
However, due to complicated epidemics in 2020, and many inefficient customers of the company increase, the revenue in 2020 will increase slightly
3.2.3 Test of detail with revenue
Test of detail for sale and services provider
Total revenue at the end of the year matches the income statement, the tax statement convenient comparison
The majority of transactions focus on the top-performing product, with the company implementing a sales policy that covers 70% of the contract value; customers are required to pay a minimum of 30% This process involves essential documents such as sales invoices and delivery notes.
Auditors perform a thorough examination of sales operations from January, March, and October, focusing on the months with the highest, lowest, and average sales figures This strategic sampling approach ensures professional validation of sales activities, allowing for an effective assessment of the completeness and authenticity of the business operations.
Test of detail for invoices
Invoices of significant value are verified to ensure they align with the data in the accounting records, confirming the authenticity of transactions, including dates and sales values Accurate data recording is essential for maintaining financial integrity.
The goods are documented in an organized manner, detailing both their names and quantities alongside the monetary values Primarily, electronic invoices featuring clear authentication signatures are utilized These practices enhance the reliability of audit evidence and associated documentation.
At the conclusion of the audit, the auditor conducted a comparison between the declared data and the audit findings, emphasizing the initial material significance of certain items The staff also highlighted discrepancies to clients, particularly regarding tax issues, enabling them to identify the root causes and make necessary corrections for the future.
➢ For sales of goods and services
Audit objective conclusion: accept the accounting's data
Recommendations: contracts and invoices must be unified if there is any change in price or quantity, so the appendix attached
Audit objective conclusion: Auditing job is enough for the auditor to be satisfied Recommendation: no
Audit objective conclusion: Auditing job is enough for the auditor to be satisfied
CHAPTER 4 : COMMENTS AND RECOMEDATIONS FOR EASTERN
Comments on objective factors effect on Eastern auditing limited company
Before conducting an audit at the client company, thorough preparation is essential The company requests numerous samples from the business, which are crucial for the auditor to analyze and develop a comprehensive audit plan tailored to the client’s needs.
✓ During the planning phase, audit records are overall and carefully reviewed to avoid errors, discrepancies, and large fluctuations in the item
Audit responsibilities are clearly delineated, with each auditor and audit assistant assigned tasks that align with their expertise and experience levels This structured approach facilitates efficient information transfer, saves time, and ensures the collection of sufficient evidence while minimizing duplication of efforts.
✓ The Company conducted most of the fundamental audit procedures in accordance with the audit process, guaranteeing the reliability of opinions on the reasonableness of the corporate FS
In certain specialized businesses, auditors often rely on their personal experience and guidance from more seasoned auditors rather than strict instructions This subjective approach can lead to more independent and objective evaluations when a third party intervenes.
The audit process remains limited primarily to volatility analysis, with auditors often relying on excessive detailed tests that consume valuable time and resources, rather than implementing suitable analytical procedures While auditors identify revenue irregularities—whether peaks or troughs within the accounting period—they typically stop short of broadening their analytical scope This approach frequently overlooks critical components such as cash flow statements and other non-financial information, thereby limiting the depth of their analysis Additionally, the infrequent use of alternative analytical techniques, like reasonableness analysis or analytical modeling, further diminishes audit efficiency.
The auditor's working paper presentation lacks clarity in its conclusions, as the assistant auditor documented information for each individual separately, leading to potential discrepancies in data exchange and instances of duplication.
4.1.3 Comparing between theories and realities
• Similarity: The company's audit process is similar to the program learned in class about sampling etc
The VACPA model offers a clear yet flexible approach to the auditing process, allowing for adaptability based on varying audit objectives rather than strictly adhering to a standardized procedure.
Propose some recommendations to advance process auditing revenue at Eastern
➢ The company expands to gather information related to the audited entity from a third party and enterprises in the same business field and have absolute confidentiality for client
There are five key types of analytical procedures used in auditing: trend analysis, ratio analysis, reasonableness analysis, regression analysis, and data analysis Auditors and their assistants select the appropriate analytical procedure based on the specific size and needs of the business being examined.
➢ Using note-taking software so that all members of the group can capture information quickly and effectively, but still have to keep confidential information to avoid leaking customer information.
Compare research results with previous studies
The audit of sales and service provision items in the financial statement audit at EALC was conducted effectively, covering significant mistakes and frauds within the company However, the revenue audit revealed several limitations due to constraints in time and audit scope To enhance the effectiveness of the revenue audit, EALC should develop a comprehensive audit program with precise steps and appropriate procedures, enabling auditors to provide a reliable revenue confirmation opinion This will ensure that the financial statements present a truthful and reasonable reflection of the company's important aspects, in compliance with Vietnamese accounting regulations and standards.
Revenue audits are complex and time-consuming due to their direct connection to various state management regulations, making them susceptible to accounting errors and fraud that can impact business operations Auditors must adhere strictly to established processes to provide accurate and reliable opinions However, the lack of universally accepted standards for auditing revenue poses challenges Thus, establishing clear revenue audit standards is crucial for enhancing audit quality, particularly in financial statement audits Strong support from the government and relevant agencies is essential to improve the effectiveness of these audits.