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Quy trình kiểm toán chu kỳ doanh thu của Deloitte tại Công ty cổ phần Vàng bạc Đá quý Phú Nhuận (PNJ)Deloitte Vietnam Auditing Company is one of the best in the trend of integration and development of Vietnam auditing. The main reason for the volume of revenue collected in the financial statement auditing was the selection of the subject: Auditing process for the revenue cycle of Deloitte at Phu Nhuan Jewelry (PNJ) Joint stock company as a research topic
NATIONAL ECONOMICS UNIVERSITY EXCELLENT EDUCATION PROGRAM AUDIT PROJECT AUDITING PROCESS FOR THE REVERNUE CYCLE OF DELOITTE AT PHU NHUAN JEWELRY (PNJ) JOINT STOCK COMPANY Members: Tran Ngoc Mai Nguyen Van Tuan Nguyen Hai Phuc Nguyen Trung Hieu Ngo Ngoc Linh Trinh Viet Dung Hanoi 15/11/2017 CONTENTS LIST OF TABLES PREFACE PART I : CHARACTERISTICS OF AUDITING REVENUE CYCLE OF DELOITTE .6 1.1 INTRODUCTION .6 1.1.1 Overall about Deloitte 1.1.2 Overall about Phu Nhuan Jewelry Joint Stock Company .6 1.2 CHACRACTERISTICS OF REVENUES CYCLE .7 1.2.1 Definition .7 1.2.2 Classification of revenue .7 1.2.3 Conditions for recording revenue .8 1.3 CHARACTERISTICS OF AUDITING REVENUE CYLE AT DELOITTE .9 1.3.1 Audit Objectives 1.3.2 Audit process for revenue cyle 13 PART II : APPLYING AUDIT PROCESS TO AUDITING REVENUE CYLE AT PNJ 21 2.1 PLANNING THE AUDIT 21 2.1.1 Overall plan .21 2.1.2 Performing detail plan .28 2.2 PERFORMING THE AUDIT 28 2.2.1 Test of controls 29 2.2.2 Analytical procedures 30 2.2.3 Substantive test of transactions 31 2.2.4 Complete the audit 40 PART III : RECOMMENDATION 48 CONCLUSION 50 REFERENCES 51 LIST OF TABLES Table 1.1 Combined risk assessment 14 Table 1.2 Control testing 16 Table 2.1 Bảng phân tích Sff Báo cáo kết kinh doanh Công ty ABC 24 Table 2.2: Bảng hướng dẫn ước lượng tính trọng yếu Deloitte Việt Nam 25 Table 2.3: Bảng tính mức trọng yếu với Cơng ty điện tử ABC 26 Table 2.4: Bảng câu hỏi đánh giá ban đầu tính hiêụ lực hệ thống INTERNAL CONTROL khoản mục doanh thu Công ty điện tử ABC 28 Table 2.5: Bảng phân tích doanh thu 2016 29 Table 2.6: analysis of changes in price and volume 30 Table 2.7: Substantive tests of transactions 31 Table 2.8: Bảng kiếm tra hàng hỏng bị trả lại 33 Table 2.9: Bảng đối chiếu doanh thu 34 Table 2.10: Bảng kiểm tra việc ghi nhận kỳ 37 PREFACE Today, with the trend of integration and development, enterprises that want to survive and develop must undergo fierce competition Every business needs to build trust for interested parties by providing accurate and reliable financial information This is one of the important factors decisive to the success of enterprises in the market, the auditing latitude birth is an urgent requirement for businesses Auditing serves the needs of those who want to understand the credible financial information Although late and relatively new industry compared with many other industries, but with a staff of qualified, trained, experienced and quite knowledgeable about auditing in Vietnam, the audit industry of our country is growing stronger and integrating strongly with international auditing in recent years Deloitte Vietnam Auditing Company is one of the best in the trend of integration and development of Vietnam auditing Deloitte Vietnam is the result of the merger of Vaco Audit Company, the oldest Vietnamese auditing firm into a joint venture of one of the four major audit firms in the world In the process of auditing the financial statements, revenue is a very important part and Deloitte paid much attention to the fact that revenue in the business is the most frequent and contributes to the survival and development of the Company In addition, the revenue department also contains risks that may cause fraud and error, it has a close relationship with other parts of the business The main reason for the volume of revenue collected in the financial statement auditing was the selection of the subject: "Auditing process for the revenue cycle of Deloitte at Phu Nhuan Jewelry (PNJ) Joint stock company "as a research topic In our article, we divided into three parts: PART I: CHARACTERISTICS OF AUDITING REVENUE CYCLE OF DELOITTE PART II: APPLYING AUDIT PROCESS TO AUDITING REVENUE CYCLE AT PNJ PART III: RECOMMENDATION Despite our best effort and effort, due to limited knowledge and experience, our subject matter is inevitably lacking We look forward to receiving your comments so that you can further improve this project Thank you sincerely! PART I: CHARACTERISTICS OF AUDITING REVENUE CYCLE OF DELOITTE 1.1 INTRODUCTION 1.1.1 Overall about Deloitte Deloitte has more than 263,900 professionals at member firms delivering services in audit & assurance, tax, consulting, financial advisory, risk advisory, and related services in more than 150 countries and territories Revenues for fiscal year 2017 were US$38.8 billion Deloitte Vietnam is the first auditing company in the independent auditing market in Vietnam The establishment and development of Deloitte Vietnam is closely linked to the formation and development of independent auditing Deloitte Vietnam has the advantage of being strongly supported by the parent company as well as other Deloitte members in Southeast Asia in terms of human resources, experience as well as advanced modern audit procedures This has made a significant contribution to the success of Deloitte Vietnam in the market and captures the confidence of businesses and people of interest 1.1.2 Overall about Phu Nhuan Jewelry Joint Stock Company Main business sectors: Producing and trading jewelry of gold, silver, precious stones, fashion accessories, souvenirs Trading watches and buying gold bars Diamond, precious stones and precious metal inspection services Trading in real estate Vision As the leading jewelry and fashion retailer in Asia, it holds the number one position in the middle and high end segments in Vietnam Mission PNJ brings pride to customers with exquisite jewelry products, superior quality We affirm our leadership position in creativity, sophistication and reliability in jewelry and fashion Core values Integrity - Responsibility - Quality - Innovation – Mounting 1.2 CHARACTERISTICS OF REVENUES CYCLE 1.2.1 Definition Revenue is a very important item in financial statement because it is the basis for users to review about the business situation and the scale of the enterprise Therefore, anyone who interested in in the efficiency of the enterprise should read this item in financial statement Particularly for accountants, AUDITORS, revenues also have to be considered in terms of receiving revenues, revenues classification, the time revenues are recorded and evaluation of this item on accounting documents, reports, etc… In addition, revenue is related to other item and cycle such as: Selling procedure, account receivable, cash, capital, inventory, therefore AUDITORS of Deloitte at PNJ JSC focus on this item and consider it as one of the most important item in financial statement According to International accounting standard 18 : “Revenue is the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants.” Every company with different business activities will have different characteristics of revenues item Revenue includes only the total value of profits that enterprises have obtained or will obtain The amount that’s collected from the third party is not profit; it does not increase the equity of the company so it will not be considered as revenue Capital contributions of the shareholders will increase owner equity but will not increase the profits of the enterprise therefore it is not revenue 1.2.2 Classification of revenue Sales revenue and revenue from providing services: revenue that’s earned from the sales of products , providing services is the main and regularly revenue from company’s business activities Financial revenue: revenues from financial activities of the company such as : loans, purchase and sale of foreign currency, selling copyright and other financial investment activities such as buying securities, investments in subsidiaries, … There’re corresponding financial revenues such as interest from loans or deposits, discounts, dividends, exchange rate differences Other revenue: revenues from the unusual activity such as revenues from liquidation of fixed assets, revenue after partner broke the contract: donation, inheritance or aid Note: Revenue from sales and service providers is not only just revenue from sales and service providers but also deductible loss and net sales: including deductions revenues include trade discounts, discount selling price, goods were returned Sales revenues and sale from providing services are the value of goods and services sold or provided during accounting period For company is liable for VAT (Value Added Tax) , under the deduction method, this revenue does not include VAT Commercial discounts is the amount that company discount for customers who buy large quantities at once or after many times Discount selling price is a deduction for the buyer who bought inferior quality goods, incorrect specifications or backward tastes Value of returned goods sold is the value of sales volume that already bought by customers but customers refused to pay and return to company Net revenue is sales revenue and sales from providing service without deduction such as trade discount, rebate, value of returned goods sold, SCT (Special Consumption Tax) or Export Tax on the turnover (if there is any) Particularly for company is liable for VAT follow the direct method, output VAT is calculated on the sales revenue but it will be included in deductions to eliminate from revenue later to get net revenue 1.2.3 Conditions for recording revenue With each business type, characteristics of business activities are different, because each type of revenue has different characteristics about products, ownership as well as the method of calculating and specific guidelines However, the recording revenues still follow one general principle which is increasing profit and increasing owner equity There are conditions to apply for sales revenue: Company has transferred substantially all risks and rewards associated with ownership of the goods to the buyer Company no longer holds jurisdiction of goods as cargo owners or control over the goods Revenue is determined relatively sure Company has obtained or will obtain profit from sales transaction Identify all costs that related to sales transactions There are conditions to apply for revenue from providing services: Revenue is determined relatively sure Company has ability to collect profit from the transaction that provide service Determine the percentage of work completed at the date of the Balance Sheet Identify all costs related to the transaction and the costs to complete the transaction to provide that service 1.3 CHARACTERISTICS OF AUDITING REVENUE CYCLE AT DELOITTE 1.3.1 Audit Objectives 1.3.1.1 Transaction-related audit objectives The auditorS’s transaction-related audit objectives follow and are closely related to management’s assertions about classes of transactions There is a difference between general transaction-related audit objectives and specific transaction-related audit objectives for each class of transactions The six general transaction-related audit objectives discussed here are applicable to every class of transactions and are stated in broad terms Specific transactionrelated audit objectives are also applied to each class of transactions but are stated in terms tailored to a specific class of transactions, such as sales transactions Once the auditorS establishes general transaction-related audit objectives, they can be used to develop specific transaction-related audit objectives for each class of transactions being audited General Transaction-related Audit Objectives : Occurrence—Recorded Transactions Exist This objective deals with whether recorded transactions have actually occurred Inclusion of a sale in the sales journal when no sale occurred violates the occurrence objective This objective is the auditorS’s counterpart to the management assertion of occurrence for classes of transactions Completeness—Existing Transactions Are Recorded This objective deals with whether all transactions that should be included in the journals have actually been included Failure to include a sale in the sales journal and general ledger when a sale occurred violates the completeness objective This objective is the counterpart to the management assertion of completeness for classes of transactions The occurrence and completeness objectives emphasize opposite audit concerns Occurrence deals with potential overstatement; completeness with unrecorded transactions (understatement) Accuracy—Recorded Transactions Are Stated at the Correct Amounts This objective addresses the accuracy of information for accounting transactions and is one part of the accuracy assertion for classes of transactions For sales transactions, this objective is violated if the quantity of goods shipped was different from the quantity billed, the wrong selling price was used for billing, extension or adding errors occurred in billing, or the wrong amount was included in the sales journal It is important to distinguish between accuracy and occurrence or completeness Posting and Summarization—Recorded Transactions Are Properly Included in the Master Files and Are Correctly Summarized This objective deals with the accuracy of the transfer of information from recorded transactions in journals to subsidiary records and the general ledger It is part of the accuracy assertion for classes of transactions Classification—Transactions Included in the Client’s Journals Are Properly Classified This objective addresses whether transactions are included in the appropriate accounts, and is the auditorS’s counterpart to management’s classification assertion for classes of transactions Timing—Transactions Are Recorded on the Correct Dates The timing objective for transactions is the auditorS’s counterpart to management’s cutoff assertion A timing error occurs if a transaction is not recorded on the day it took place Specific transaction-related audit objectives : After the general transaction-related audit objectives are determined, specific trans- actionrelated audit objectives for each material class of transactions can be developed Such classes of transactions typically include sales, cash receipts, acquisitions of goods and services, payroll, and so on At least one specific transaction-related audit objective should be included for each general transaction-related audit objective unless the auditorS believes that the general transaction-related audit objective is not relevant or is unimportant in the circumstances 1.3.1.2 Balanced-related audit objectives Balance-related audit objectives are similar to the transaction-related audit objectives just discussed They also follow from management assertions and they provide a frame- work to help the auditorS accumulate sufficient appropriate evidence related to account balances There are also both general and specific balance-related audit objectives General Balance-Related Audit Objectives Existence—Amounts Included Exist This objective deals with whether the amounts included in the financial statements should actually be included This objective is the auditorS’s counterpart to the management assertion of existence for account balances Completeness—Existing Amounts Are Included This objective deals with whether all amounts that should be included have actually been included Failure to include an account receivable from a customer in the accounts receivable trial balance when a receivable exists violates the completeness objective This objective is the counterpart to the management assertion of completeness for account balances The existence and completeness objectives emphasize opposite audit concerns Existence deals with potential overstatement; completeness deals with unrecorded amounts (understatement) Accuracy—Amounts Included Are Stated at the Correct Amounts The accuracy objective refers to amounts being included at the correct amount Accuracy is one part of the valuation and allocation assertion for account balances Classification—Amounts Included in the Client’s Listing are Properly Classified Classification involves determining whether items included on a client’s listing are included in the correct general ledger accounts Classification is also part of the valuation and allocation assertion The classification balance-related audit objective is closely related to the presentation and disclosurerelated audit objectives, but relates to how balances are classified in general ledger accounts so they can be appropriately presented and disclosed in the financial statements Cutoff—Transactions Near the Balance Sheet Date Are Recorded in the Proper Period In testing for cutoff of account balances, the auditorS’s objective is to determine whether transactions are recorded and included in account balances in the proper period An account balance is likely to be misstated by those transactions recorded near the end of the accounting period For an annual audit this is as of the balance sheet date Cutoff tests can be thought of as a part of verifying either the balance sheet accounts or the related transactions, but for convenience, AUDITORS usually perform them as a part of auditing balance sheet accounts For this reason, we also include cutoff as a balance-related audit objective related to the valuation and allocation assertion for account balances The timing objective for transactions deals with the proper timing of recording transactions throughout the year, whereas the cutoff objective for balancerelated audit objectives relates only to transactions near year-end Detail Tie-In—Details in the Account Balance Agree with Related Master File Amounts, Foot to the Total in the Account Balance, and Agree with the Total in the General Ledger Account balances on financial statements are supported by details in master files and schedules prepared by clients The detail tie-in objective is concerned that the details on lists are accurately prepared, correctly added, and agree with the general ledger Realizable Value—Assets Are Included at the Amounts Estimated to Be Realized This objective concerns whether an account balance has been reduced for declines from historical cost to net realizable value or when accounting standards require fair market value accounting treatment Rights and Obligations In addition to existing, most assets must be owned before it is acceptable to include them in the financial statements Similarly, liabilities must belong to the entity Rights are always associated with assets and obligations with liabilities This objective is the auditorS’s counterpart to the management assertion of rights and obligations for account balances Specific Balance-Related Audit Objectives The same as for transaction related-audit objectives, after the general balance-related audit objectives are determined, specific balance-related audit objectives for each account balance on the financial statements can be developed At least one specific balance-related audit objective should be included for each general balance-related audit objective unless the auditorS believes that the general balance-related audit objective is not relevant or is unimportant for the account balance being considered There may be more than one specific balance-related audit objective for a general balance-related audit objective 1.3.2 Audit process for revenue cycle 1.3.2.1 Strategic planning design and risk assessment Identify the main types of transactions The auditorS determines the types of transactions or processes that affect the important accounts and related documents identified above Understand the business transactions that have arisen and processed, identifying potential misstatements and the corresponding control procedures of the customer 10 [1] : Contracts [2] : Invoice [3] : Shipping reports Conclusion: Achieve goals Table 2.8: Audit of sales return Invoice Code Date Unit price HD-6577 4/12/16 1.2 Received Quantity 967,500 Million VND Returned Accepted Quantit Million y VND Quantity Million VND 1,137,000 82,680 99,696 864,960 1,037,604 HD-6317 4/12/16 1.9 1,065,960 2,006,324 28,460 53,960 1,027,566 1,952,664 HD-6977 15/5/16 1.2 1,940,560 2,328,600 29,960 35,940 1,910,550 2,992,660 Inspection of the handling of damaged goods returned by ABC Company Most of the damaged goods were returned to PNJ for repairs and required to be returned to customers On May 13, 2016, the invoice HD6577 invoice totally not repaired, PNJ sold as scrap and recorded into sales and service delivery As such, the accountant has recognized that the revenue is not reasonable because it is just another income of the Company However, the difference is less than Threshold, so AUDITORS does not propose to make the adjustment entries Conclusion: Achieve goals 27 Table 2.9: Cutoff test Invoice Check Million VND Number Code Date HD64647 JFBDJBJ 2,024,5456 104894/XSX 14/11/2016 V HD66535 KNSDFKD 2,316,2971 5664/DTGC 14/11/2016 V HD64353 HJ-DJF-49 337,6194 115499/XSX 5/12/2016 V HD67965 DFNDK 2,104,6652 5725/DTGC 21/11/2016 V HD66655 DFHDHF 3,687,2445 114382/XSX 28/11/2016 V 28 After inspecting the transactions in December and recording receipts from the Japanese side, the AUDITORS discovered that the goods lots were exported on December 5, 2016 Receiving revenue not on time, the delivery date is 5/1/2017 so according to the method of sale of ABC, the revenue of this shipment must be recorded in 2017 However due to the difference is smaller than Threshold, AUDITORS does not propose to issue adjusting entries However, AUDITORS will withdraw its opinion on the management of the revenue recognition procedure at the end of the audit Check for early delivery: Verification of shipments made in December but has not recorded in December sales (actual time of shipment from the sales department) As DDU , DDP should record revenue when arrival at buyer port Therefore, the auditorS collects proof of date of arrival at the port of purchase Whenever Japan receives the goods, the Company in Japan will send the receipt to PNJ and the revenue is recognized Goods were transferred to the port of Japan on January 13, 2017, so the sales of goods exported in 2016 are recorded in 2017 is correct 2.2.4 Complete the audit During the completion phase, AUDITORS performs two major tasks, namely, the finalising the audit and the work performed after the audit Finalising the audit: After the completion of the audit plan, AUDITORS performs the evaluation of auditing evidences collected to scrutinize and make conclusions for the whole audit Main tasks include: + Review of AUDITORS's working papers and evaluation of results After completing all the work in accordance with the audit program, the technician performs a review of his / her working papers, assemblies and assesses the auditing evidences collected The review of AUDITORS's working papers is also carried out by the auditorS and the expert to ensure that there are no errors in the work of the technician Is this work done to ensure that the audit procedures have met the set objectives? Are the AUDITORS findings consistent with the AUDITORS records collected during the audit process? 29 Does the presentation of AUDITORS's working papers have sufficient information, consistent and accurate? At PNJ, after the working papers of AUDITORS in the course of implementation of the audit plan the revenue item was reviewed by the audit manager and the expert found that the audit performance has been done well and no points need to be added + To review arising matters after the implementation of the audit plan The purpose of this review is to determine whether subsequent events following the implementation of the audit plan affect the findings of the audit AUDITORS for sales items or not After understanding and evaluating events arising after the implementation of the audit plan, AUDITORS confirmed that there were no unusual events related to the revenue item Obtain auditing evidences recognized by the Board of Directors of ABC Company AUDITORS conducts the collection of letters of approval from the Board of Directors of ABC Company or approved financial statements to ensure that the evidence collected by the AUDITORS is acknowledged by the Board of Directors for its liability for such evidence Honestly and properly present the financial statements in accordance with the approved and commonly used financial reporting framework + General audit results, auditing report and management letter After performing all the works, AUDITORS conducted a summary of the problems that AUDITORS discovered This summary is to be used to gather the documents for the release of the audit report With the revenue item at ABC Electronics, AUDITORS summed up its findings and confirmed no material misstatement Reports issued after the audit ended at Deloitte Vietnam include: Report of board of directors, AUDITORS's audited financial statements and management letter (if any) For the audit of revenue items at ABC Electronics, the conclusion made by AUDITORS is that this item is truely and fairly presented in all material aspects AUDITORS's opinion is unqualified Prior to the release of the audit report, the auditors will review the draft audit report to reconcile with the client and then publish the audit report Works performed after the audit + Audit quality assessment: This work is conducted by the audit director and members of the Board of Directors in order to learn from experience in order to improve the quality of the audit 30 + Keeping contact with customers: This work is done to maintain the good relationship and prestige, good image of the company for customers At the same time, this work also helps to gather new information about customers, and events that may affect the next year's audit General audit procedures STT General audit procedures Revenue recognition policy audit includes (completeness, occurence, timeliness and posting and summarization) Sales Revenue( completeness, occurence, timeliness and posting and summarization) Check for sales returns (occurence, completeness and posting and summarization) Presentation and disclosures Sales cutoff (Early cutoff) Sales cutoff (Late cutoff) Compare the revenue recognition with the sales department Foreign currency transaction Detailed audit procedures STT Detailed audit procedures performer conclusio n Check the revenue recognition policy A Considering that accounting policies and methods for recognizing revenue are applied consistently and consistently? B Determine if the following types of revenue, if any, are accounted for and classified according to the economic nature of the operations: Internal sales, sales to related parties, consignment, sales receipts in advance, sales of large 31 volume of sales are made several times, installment C In the course of carrying out the audit procedures below, whether the evidence gathered help AUDITORS's understanding of revenue recognition policies and procedures as well as the appropriateness of policies and procedures or not? Examine Sales revenue A Perform an analytical procedure to check the revenue analyse by each commodity, classify sales by customer Check the calculation, compare it with the ledger and the report Estimate sales based on independent metrics It is possible to use the following figures when calculating the estimates: Previous year's volume, this year and the selling price; Sales, value of goods sold; cost of goods sold, gross profit margin; Sales revenue for large customers; sectoral statistics; Changes in the business environment affect sales prices and sales Separation of data to formulate estimates and customer data at sufficiently detailed levels so that the desired level of assurance can be achieved based on comparative data Separation methods can be used, such as: Period, month, quarter, or weekly; Classified by account, by product group; By department or sales location Calculate the threshold value to determine the materiality between the estimated and the actual recorded Comparison of estimated and accounting data If the difference is greater than the required value, find more evidence and find a reasonable explanation for the difference If the difference is less than the threshold, it may be decided to carry out further testing procedures Evaluation of test results B Perform detailed examination of revenue recognition operations: if the recognition of cost is not made with the recognition of revenue Select the sample of some initial prison labor, such as sales invoices, bills of lading For selected samples, the following procedures should be carried out: Check sales invoice with goods issued from store The price shall be calculated according to the price list at 32 each time For the units that are members of the Corporation need to compare with the price policy of the Corporation Determine the surcharges and other items on the invoice Ensure that revenue is recorded in correct period Compare the amount written on the invoice with the amount recorded on the sales journal Compare sales journal with the ledger data Evaluation of test results Examine sales returned A Ask the customer to provide or make a return statement for the returned goods Check the calculation on the summary sheet, in comparison with the general ledger and financial statements of the unit B Estimate the value returned goods based on independent data sources The data can be used: The sales returned level in prior years, in specific period C Randomly selected some of the sales returned transactions, compared to the amount refund, and reduction in sales revenue Agree the goods returned with original sales invoice Confirm that the sales returned accounted for in correct period D Evaluation of test results Presentation and disclosures A Consider whether the following items are accounted for, properly presented and classified Revenue from sales to related parties Turnover of semi-finished products Revenue from selling raw materials Sale of discarded materials Other revenues B Assessment of performance Cutoff-Early cutoff A Select all revenue recognition activities arising days after the balance sheet date and reconcile with the shipping documents B Evaluation of test results Cuyoff-Late cutoff A Examnie goods returned in December 2016 Ensure that these are accounted for in correct period 33 B Select all sales reduction transactions recorded in December 2016 Check with receipts and related documents to ensure that the transactions are accounted for in correct period C A review of other complex, unsual sales in December 2016 D Evaluation of test results Sales in foreign currency A Assessment of the reasonableness of the method of accounting revenues from foreign currencies B Ask the customer to provide a summary table of revenue originating in foreign currency selecting some transations and carrying out the following procedures: Are the exchange rates used for accounting reasonable? Recalculate foreign exchange differences if necessary C Evaluation of test results (Source from deloitte Vietnam) 34 PART III: RECOMMENDATION Trength On the application of AS / software The company has successfully implemented AS / audit software, AS / is a very useful and useful audit tool for AUDITORS in the audit process AS / has detailed instructions for AUDITORS (MAP) in the implementation of each part of the audit, including the revenue portion In particular, AUDITORS is very convenient and easy to refer to the audit and work of the AUDITORS team In addition, high-level AUDITORS audits for each audit are made easier AS / helps AUDITORS save time and energy for each audit AS / software supports the saving of text files in a very scientific and easy-to-use format, which makes sense for saving documents as reference material for subsequent auditing years on the process of auditing the financial statements of the financial statements audited by Deloitte Vietnam The audit process of Deloitte Vietnam's revenue items is still in compliance with the general procedure of an audit including Step 3: Make an audit plan, perform an audit and end the audit However, every step of the process is broken down into more detailed steps Deloitte's revenue audit consists of seven steps Breaking down this process will help AUDITORS's work be guided in a more specific way, the work of technician is always performed to ensure the highest efficiency, less errors occur due to tight level of the process Moreover, this subdivision also allows the senior technician to easily control the work of the technician, ensuring the quality of the audit is always at the highest level Assessment of INTERNAL CONTROL system: This evaluation was conducted by Deloitte Vietnam through initial assessment of customers Any customer's audit policy for revenue items is fully collected by AUDITORS This initial information is stored in the 4000 index of the INTERNAL CONTROL system of AS / In describing the customer's INTERNAL CONTROL system of revenue items, AUDITORS usually uses one of three methods, including the questionnaire on the INTERNAL CONTROL system, the reporting table and the flow chart The choice of method is completely dependent on AUDITORS and depends on the characteristics of each customer AUDITORS may choose a method to describe the customer's INTERNAL CONTROL system or may also combine methods to better describe the control process for each customer's business or item For example, for the audit of ABC Company, this is a longtime customer of the Company, 35 AUDITORS through assessment INTERNAL CONTROL system found that ABC Company has a process of accounting, revenue recognition is not too complicated or may contain a lot of risk because the Company's revenue mainly from sales to parent company, ordering process and reconciliation of revenue between ABC Company and parent company is rather strict, so AUDITORS has It is possible to use reliable reference materials from here, which can reduce audit procedures About the implementation of the analytical procedures: In the process of auditing the revenue item in the Company, the accounting procedures were implemented relatively effectively The effect here is not only on aspects that help AUDITORS reduce the detailed testing procedures, but the effective implementation of the analytical procedures to help AUDITORS get a more general view, accurate assessment more errors in the implementation process Estimates are relatively accurate and comparative results are reliable For example, for the estimation of sales of XYZ automobile company, AUDITORS conducted the meeting and examined in detail two components of revenue such as sales price and sales volume to ensure that the model was constructed Based on reliable factors and statistically significant predictions of reliability On the coordination of the work of the auditors in the audit team: The stage of performing the audit is the process of using the audit techniques suitable for each auditor to collect the auditor's report AUDITORS has implemented actively and positively the plans and programs of the auditors to give reasonable and reasonable opinion of the financial statements on the basis of sufficient and reliable audit evidence Although each auditor is assigned different tasks, the auditors know that they are closely connected For example, for the audit of revenue items of ABC Company, AUDITORS audits items of audited information items audited by the auditors to audit the finished products, receivables This is to avoid unnecessary overlap in the audit process, while saving time and costs Inspection and examination of the quality of the audit: Regular inspection, supervision and evaluation of the quality of audit of revenue items Each AUDITORS must self-assess the work done to see if the requirements are met, and each AUDITORS will have the rating of AUDITORS higher level Regular job inspection and assessment will help to identify defects in the implementation process so that corrective and corrective measures are taken During the audit 36 process, the audit team chief regularly reviews the work of other auditors in the group to provide guidance and timely supplementation of the procedures if necessary Another remarkable advantage is that the Company regularly updates new legal documents related to the economic field for its employees Therefore, auditors are always well-equipped with knowledge and skills latest regulations Weaknesses On the application of AS / software The revenue verification audit program applied at the Company is applied from Deloitte's revenue auditing program applied to countries with strong economy such as Noodle, UK, Japan There have been a number of changes to accommodate the economic environment in Vietnam, but that change has not really matched the auditing of the turnover of Vietnamese enterprises, State sector On the process of auditing revenue items in the financial statements audited by the Company Firstly, the process of auditing revenue is sometimes complicated, many stages, many steps are sometimes unnecessary The application of this process machinery will increase the time and cost of the audit Actually, for many customers, the application of the whole process in revenue auditing is not necessary but it is not effective in carrying out the work Secondly, the Company's revenue audit mainly performs basic tests without really paying much attention to assessing INTERNAL CONTROL's customer revenue system The assessment of customer's INTERNAL CONTROL system It takes less time It is not necessary to focus on performing basic tests if the customer has a relatively efficient operating system This has led to a significant increase in the workload of AUDITORS In addition, the collection of customer information is mainly presented in a narrative and questionnaire format without using the flow chart The narrative format allows for a detailed and complete description of customer information, but it is difficult to cover all information Third, arithmetic analysis in the audit of revenue items play a very important role However, there are some limitations for AUDITORS in compiling and comparing indicators for the implementation of analytical procedures that are incomplete in industry statistics leading to alignment with the criteria of The sector has not been implemented much This greatly reduces 37 the level of efficiency and reliability in performing analytical procedures Through the audit process, ABC Company and XYZ may find that AUDITORS usually focuses on analyzing customer turnover fluctuations over years but does not pay much attention to the analysis of customer turnover fluctuations in correlation with industry and business environment Pressure on time and progress This has a negative impact on the quality of the audit: The revenue of a business is often influenced by the impact of the business environment If a business is quite complex and has a lot of changes in its revenue in the auditing year, it has to increase its audit workload If the company does not carry out mid-year audits to divert work, the work will be put into a very large final audit, plus the pressure to ensure progress will make AUDITORS overwork and double When there is not enough time to cover all the work, the efficiency of work is low, which can lead to audit risk Recomendation On the application of AS / audit software Due to the fact that the activities of companies in Vietnam are different from the activities of companies in the world In addition, the business environment, the law and the micro and macro factors all have different elements Therefore, when applying the auditing process to Deloitte's global revenue streams into Vietnamese businesses, there is a need to adapt to the realities of operations in Vietnam On the audit process The audit process should have a flexible change for each type of client, which may require more control and analytical testing, but other clients should focus on auditing more details An effective auditing program requires the company to have a team of experienced, professionally qualified technicians Besides, an indispensable element is to learn to understand the business environment of customers Therefore, the company should maintain a stable audit team, so some have performed audits in previous years This will facilitate the overall assessment of the customer's INTERNAL CONTROL system as well as the audit team will be easier and easier to exchange and work with customers Evaluation of the INTERNAL CONTROL system: The fact that INTERNAL CONTROL's assessment of the revenue item will help a lot in AUDITORS's work However, at Deloitte Vietnam, the 38 assessment of the operation of the INTERNAL CONTROL system with the revenue item has not been focused on, mainly AUDITORS conducted the basic test This takes time, effort Therefore, the Company should strengthen the implementation of control tests for revenue items These tests should focus on assessing the presence of the INTERNAL CONTROL system and the effective operation of the system To this, from the very beginning of AUDITORS should be combined with professional judgment along with their understanding of the field of activities of the auditor to assess the risk of the audit to be able to effective application of auditing methods Implementation of analytical procedures: The implementation of analytical procedures is often very effective for the audit, AUDITORS can save time and costs In addition, through the analysis of AUDITORS, it is possible to get an initial assessment of the breach and risk of the audit, since there is a more detailed examination Therefore, the company should focus more on the implementation of this procedure in order to reduce the cost and time of audit Reduce the pressure on year-end audits The company should intensify mid-year audits: The company should further accelerate the implementation of preliminary audits on revenue for customers Audits can be made months, months or months depending on each type of enterprise In fact, the implementation of preliminary audits will make it possible to carry out year-end audits Work is simpler and auditing costs are reduced and the effectiveness of audits is reduced higher > Improve the level and capacity of employees, assign the work in accordance with the capacity of employees Every year, the company must maintain training and improve the level of staff as well as require employees to update their economic and legal information regularly due to regular changes in the standard accounting accounting audit of turnover 39 CONCLUSION Because of the experience and understanding of Vietnam's business environment as well as the reputation of one of the world's largest audit firms, Deloitte Vietnam has become the leading bird in the Vietnamese audit community Deloitte Vietnam always tries to ensure high quality of service to meet the increasingly demanding needs of the market The auditing industry is witnessing stiff competition to be able to withstand the ongoing development of auditing companies that require Deloitte Vietnam to constantly improve the process of auditing the financial statements , in which the process of auditing the revenue item plays a very important role Throughout the research process, our project has raised some of the most general aspects of the audit process of sales and service items at Deloitte Vietnam as well as general audit procedures Although we tried our best, however, due to limited knowledge and time spent studying our articles, there are many mistakes we hope to receive your comments Thank you sincerely! 40 REFERENCES Auditing - ALVIN A.ARENS & JAMES K.LOEBBECKE - Statistics Publishing House Curriculum audit theory - Prof Dr Nguyen Quang Quynh (Accounting Dept - National Economics University) - Finance Publisher November 2006 Financial Audit Curriculum - Prof Dr Nguyen Quang Quynh (Accounting Dept - National Economics University) - Financial Publishing House in 2006 Auditing - Statistical Publishing House 2006 - Ho Chi Minh Economics University - Accounting Auditing Auditing Standards Financial audit - Statistical Publishing House 2006 - Dr Vo Van Nhi - Tran Anh Hoa - Master Nguyen Ngoc Dung Auditing - TS Vuong Dinh Hue - Doan Xuan Tien - Finance Publisher in 1996 Internal documents of Deloitte Vietnam 41 ... coordination of the work of the auditors in the audit team: The stage of performing the audit is the process of using the audit techniques suitable for each auditor to collect the auditor''s report AUDITORS... other parts of the business The main reason for the volume of revenue collected in the financial statement auditing was the selection of the subject: "Auditing process for the revenue cycle of. .. tasks, the auditors know that they are closely connected For example, for the audit of revenue items of ABC Company, AUDITORS audits items of audited information items audited by the auditors to audit