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Khoá luận: Kiểm toán tiền và tương đương tiền trong báo cáo tài chính tại công ty kiểm toán và định giá Thăng Long T.D.K (tiếng anh). The thesis including 3 main part:Chapter 1: Concept and framework of Audit procedures for Cash and Bank accounts on Financial StatementsChapter 2: Actual Audit procedure for Cash and Bank accounts on Financial Statement at Thang Long – T.D.K Auditing and Valuation company, Ltd.Chapter 3: Proposals for completing the Audit procedures for Cash and Bank accounts on Financial Statement at Thang Long – T.D.K Auditing and Valuation company, Ltd
VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION THESIS COMPLETING AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD Nghiêm Thu Hiền Hanoi – 2021 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION THESIS COMPLETING AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD SUPERVISOR: M.A Ngơ Trí Trung STUDENT: Nghiêm Thu Hiền CODE: 17071263 COHORT: AC2017A MAJOR: Accounting, Analyzing and Auditing Hanoi – 2021 Acknowledgement Firstly, I would like to express my special gratitude and deeply regard to my supervisor, M.A Ngo Tri Trung, who supports and guides me in the thesis, for his patience, motivation, enthusiasm, and immense knowledge His guidance helped me during the research and provided suggestions helping me accomplish the thesis well I also would like sincerely thank to the Board of Directors of Thang Long – T.D.K Auditing and Valuation company, Ltd for providing the essential documents of the company as well as the auditors for your enthusiastic guidance and facilitating me to study and work Finally, I would like to thank International School, Vietnam National University, Ha Noi for giving me a chance to experience and supports me for my thesis Yours sincerely, Nghiem Thu Hien i Letter of Declaration I hereby declare that the Graduation Thesis titled “Completing the audit procedures for cash and bank accounts on Financial Statements at Thang Long – T.D.K Auditing and Valuation company, Ltd” is the results of my own research and has never been published in any work of others During implementing this thesis, I have seriously taken research ethics; all findings of this project are results of my own research and surveys; all references in this project are clearly cited according to regulations I bear full responsibility for the fidelity of the number and data and other contents of my graduation project Hanoi, Jun 1st, 2021 Nghiêm Thu Hiền ii LIST OF ABBREVIATIONS Thang Long – T.D.K Audit and Valuation T.D.K Company, Ltd ABC Joint Stock Company ABC Financial Statement FS International Standards on Auditing ISA Vietnam Association of Certified Public VAPCA Accountants iii TABLE OF CONTENT ACKNOWLEDGEMENT I LETTER OF DECLARATION II LIST OF ABBREVIATIONS III LITERATURE REVIEW ON AUDIT PROCEDURE FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENT 1.1 LITERATURE 1.1.1 Definition and classification 1.1.2 Rules for cash accounting 1.1.3 Characteristics of cash and bank on Financial Statement 1.2 CONCEPT OF AUDIT PROCEDURE FOR CASH AND BANK ACCOUNT ON FINANCIAL STATEMENT 1.2.1 Audit objectives 1.2.2 Resources and documentations for the audit 1.2.3 Frequently misstatements 1.3 FRAMEWORK OF AUDIT PROCEDURE FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENT 1.3.1 Planning: 1.3.2 Executive 13 1.3.3 Completion 19 CONCLUSION CHAPTER 20 ACTUAL AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 21 2.1 OVERVIEW OF THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 21 2.1.1 General information 21 2.1.2 History of establishment and development of the company 22 2.1.3 Organizational structure 23 iv 2.1.4 Types of service of the company 23 2.1.5 The quality control of assurance services process 24 2.2 THE AUDIT PROCESS FOR FINANCIAL STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 26 2.2.1 Planning phase 26 2.2.2 Execution 28 2.2.3 Completion 30 2.3 AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCILA STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 31 2.3.1 Planning 31 2.3.2 Execution 32 2.3.3 Completion 33 2.4 ACTUAL AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCILA STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 34 2.4.1 Planning 34 2.4.2 Execution 47 2.4.3 Completion 67 CONCLUSION CHAPTER 69 PROPOSALS FOR COMPLETING THE AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENT AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 70 3.1 COMMENTS ON THE ACTUAL AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS PERFORMED BY THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 70 3.1.1 Advantages 70 3.1.2 Disadvantages 71 3.1.3 Reasons for restrictions 74 v 3.2 DEVELOPMENT ORIENTATION AND NECESSITY OF COMPLETING THE AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCILA STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 74 3.2.1 Development orientation of Thang Long 74 3.2.2 The necessity of completing the audit procedures for cash and bank accounts on financial statements at Thang Long – T.D.K Auditing and Valuation company, Ltd 75 3.3 REQUIREMENTS AND RULES FOR COMPLETING THE AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCILA STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 76 3.3.1 Requirements for completing the audit procedures for cash and bank accounts 76 3.3.2 Rules of completing the audit procedures for cash and bank accounts 77 3.4 PROPOSALS FOR COMPETING AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENT AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 77 3.4.1 Planning phase 77 3.4.2 Execution phase 78 3.4.3 Completion phase 79 3.5 CONDITIONS TO IMPLEMENT PROPOSALS 79 3.5.1 To Thang Long – T.D.K Auditing and Valuation Company, Ltd 79 3.5.2 To clients 80 3.6 PROPOSALS FOR THE THESIS 80 3.6.1 Limitations of the thesis 80 3.6.2 Recommendations for thesis success 81 CONCLUSION CHAPTER 83 BIBLIOGRAPHY 84 APPENDICES 85 vi Introduction Rationale of research Along with the strong development of the economy, public audits are also constantly growing and become an essential demand on the economic race Currently, in the economy, the information on FS does not only describe the whole picture of operating and doing business in the fiscal year of businesses, to stakeholders, they base on those to make their decisions and investments, thus, the information on FS is required to become more true and fair, objective and high reliable Therefore, auditing is becoming necessary for operating and doing business and improvement the management quality of all type businesses The audit report is more concerned by stakeholders because it expresses the degree of reliance of information on FS Along with Non-current assets and inventory accounts normally are high value and pervasive to FS, Cash and Bank accounts also plays importance role on FS, as Cash and Bank accounts are closely relative to the most of accounts on FS, particularly, Financial Position and Statement of cash flow and almost relate to sales and purchase cycles and payment transactions, which are important to the entity’s operation Besides that, Cash and Bank accounts both are the most high-liquidity assest, therefore, almost transactions related to cash and bank are high value and high possibility of having frauds and errors However, not all audits of cash and bank achieve audit objective and effectiveness Moreover, the real story about Wirecard's bankruptcy caused by the disappearance of 1.9 billion euros in cash and bank accounts that was audited by a famous audit firm in June 2020 has been leading to controversy whether the audit procedure for cash and bank accounts on FS currently has been really focused Besides, understanding the importance of audit procedure for cash and bank accounts on FS and through internship at Thang Long - T.D.K Auditing and Valuation Company, Ltd, I realized that in fact, audit procedure for cash and bank account still has difficulties and restrictions Therefore, I choose the thesis topic is : “Completing audit procedures for cash and bank accounts on Financial statements at Thang Long T.D.K Auditing and Valuation Company,Ltd” 2/ Aims and Objective vii Aims: The research aims to complete audit procedures for cash and bank on Financial statement which helps auditor have a more reasonable assessment for these accounts and reduce audit risk of providing reasonable audit opinion Objectives: The research need to implement these main objectives: - Systemization basic arguments on the audit process for cash and bank on FS; - Study about actual audit procedures for cash and bank on FS which performed by Thang Long - T.D.K Auditing and Valuation Company,Ltd - Assessing and giving proposals to complete the audit process for cash and bank on FS at Thang Long - T.D.K Auditing and Valuation Company,Ltd 3/ Scope of the research - Subject of the research: Audit procedures for cash and bank accounts on Financial statement - Scope of the research : Audit procedures for cash and bank accounts on Financial statement which performed by Thang Long - T.D.K Auditing and Valuation Company,Ltd in 2020 4/ Research methods - Method of studying documents: Base on documents, standards on Accounting and Auditing, accounting regime; using documentations and audit files of at Thang Long – T.D.K Auditing and Valuation company, Ltd in order to obtain necessary information served for the thesis + Refer Accounting Regime Circular 200/2014/TT-BTC “Guidlines for accounting policies for enterprises”, Standards on Auditing issued by International Federation of Accountants (ISA 200, ISA 300, ISA 315, ISA320, ISA 520) to provide a basis for studying the thesis + Obtain the information of overview of Thang Long – T.D.K Auditing and Valuation company, Ltd base on documents and website of T.D.K + Obtain the information about audit procedures for cash and bank accounts for clients at Thang Long – T.D.K Auditing and Valuation company, Ltd through audit files provided by auditors viii PROPOSALS FOR COMPLETING THE AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENT AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 3.1 COMMENTS ON THE ACTUAL AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS PERFORMED BY THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 3.1.1 Advantages Ø Audit process for cash and bank accounts T.D.K perform audit follows the sample audit program provided by VACPA Through inquiring auditors at T.D.K, I found that when audit cash and bank account, auditor often performs along with ther accounts such as: revenue, expenses, non-current assets, account receivable Therefore, the auditors can detect unusual transactions as well as frauds and errors to assure that entity’s FS is presented true and fair in all material aspects and provide reliable information for intended users The audit files also follow the guidance of the VACPA, which are classified and presented in appropriate way, by categories as alphabet and number for each items In particular, the audit documentation for cash and bank is referenced as D Ø Planning phase Planning phase is prepared carefully, in accordance with the guidance of Vietnamese Standard on Auditing Auditor who has responsibility for this phase often thoroughly studies about clients as characteristics of industry, business sector and factors might affect its operation in order to have a subjective assessment of audit risk and provide a basic for formulating a suitable audit strategy and audit plan T.D.K always complies with VSA300 and performs follow the sample audit program of VACPA, planning phase is carried out quickly and scienctifically Ø Executive phase Auditor combines various types of audit test when performing audit, which helps auditor obtains sufficiently appropriate evidences to give reasonal conclusions for cash 70 and bank accounts The audit of cash and bank accounts is always closely associated with other accounts and cycles Fistly, analytical procedure Analytical procedure for cash and bank accounts is implemented by an auditor who have experiences and knowledgeable about the cash flows in the enterprise Analytical procedure performance is clearly presented on audit working papers including the result of analysis and explaination for any abnormal information Secondly, about substantive test Volume of substative test for cash and bank is performed mainly based on the result of analytical procedures and control risk assessment of entity Transactions which are performed substantive test are choosen through sampling method selected by auditor The amount of samples and sampling method is based on professional competence and assessment of auditor about transactions which have material or unusual amount Thereby, the possibility of detecting misstatements in accounting of cash and bank is quitely high and detection risk is low Moreover, auditors who responsible for auditing difference accounts and cycles often co-ordinate together and support others during conduction the audit, which helps to reduce audit time and increase the quality of audit Ø Completion phase This is considered to be the last important phase in audit Auditor conducts a summary of misstatements, gives accounting adjustment requirements and then communicates to clients to make final conclusion The review quality of the audit at T.D.K follows as the firm’s regulation with a clear segregation of duty for each member The quality of audit is controled from low level to high ones, from auditor in charge to audit manager and board of director, which aims to provide high quality for assurance services in general and audit for cash and bank in specific, thus, T.D.K could reduce audit risk to issue reasonable audit opinion for public 3.1.2 Disadvantages The audit process for cash and bank in audit of financial statement at TDK has some drawbacks as follows: 71 3.1.2.1 Planning phase Firstly, in understanding client and its environment T.D.K only studies clients at preliminary level, does not delve into specific issues such as the relationship with suppliers, customers and partners or the position of the company in the market and industry field The understanding of legal obligations is conducted by tdk at basic information level Secondly, in understanding of internal control system Auditor has not pay much attention to inspection of internal control system including test of existence and its operation Auditor only obtains information provided by board of director, chief accountant and other related people in the company, and auditor does not have chance to actual observe the internal control process in some specific cycles by himself only The questionaire about internal control is still mechanical, rigid and applied for all entity, which might make auditor assess incorrectly control risk and materiality Thirdly, in determination materiality and risk assessment The determination materiality only bases on revenue and applied for almost of clients The risk assessment relies heavily on subjective judgement of auditor and less base on specific audit procedures Determination material and risk assessment is only applied for overall financial statements as whole without division for each accounts In fact, the assessment for risk of material misstatement for cash and bank only is high or low without estimating the specific level of risk Forthly, in designing audit plan Now, TDK applies nearly same audit plan for all types of enterprises without audit program for each entity, each scope of business model 3.1.2.2 Executive phase Firstly, in test of control Because of limited audit time, T.D.K does not perform test of control regularly for all clients Even that, for close clients, tdk neglects to test of internal control in audit year and only base on results of test of control from previous years Therefore, auditor may give the inappropriate conclusion about the effectiveness of internal control Secondly, in substantive analytical procedure 72 In fact, in the audit financial statement at T.D.K, the substantive analytical procedure for cash and bank accounts is not used absolutely During audit, auditor only performs simplest analysis technique as horizontal analysis to identify the fluctuation of the objects, but not use vertical analysis or trend analysis Moreover, the information used to analyze is mainly from financial statements of entity without comparision with information of other entity who have same business sector and industry field or average ratios of the industry The auditor hardly carefully implements this procedures, and considers analytical procedures as additional audit procedures for other substantive test Thirdly, in substantive test of detailed For some clients, auditor often accepts the information on cash count record performed by clients individually without auditor’s observation in period end The sample size for test of detailed is still limited and auditor does not expand the sample size to test of detailed transactions which occurs in the begining of next year in order to test of occurence assertion Besides, auditor’s selection of samples does not guarantee objectively Sampling method used often is non-statistical and dependent on auditor’s experiences and professional judgments Auditor often concentrates on testing of transactions which have large amount or examining accounting documentations in November, December and January in next year as auditor believe that those transactions have high possibility of material misstatements 3.1.2.3 Completion phase Firstly, the conclusion of the quality of internal control has restrictions In auditor’s conclusion is only stated whether audit objectives for cash and bank accounts are achieved The opinion about the deficiency of internal control system for cash and bank rarely is shown on auditor’s conclusion Secondly, in the completion of audit files, although auditors have obtained sufficiently appropriate evidences, accomplishes audit procedures, untill auditors complete auditing for other accounts, auditors synthesize into audit files Thirdly, the revision of audit documentations has drawback Due to time limitation, the reference the audit result for cash and bank account to other audit results is rarely conducted Otherwise, the revision of audit working papers and audit evidences is not 73 performed carefully, the revision for auditing cash and bank accounts of auditor in this phase sometimes is not expressed fully on working papers such as lack of date of revision, name of revisers 3.1.3 Reasons for restrictions The restrictions of auditing for cash and bank accounts conducted by T.D.K originated by factors as follow: Firstly, currently, almost audit firms are under pressure on audit time and audit fees Clients all desire to complete the audit in the shortest time with lowest audit fees, therebby, T.D.K often limits sample size to perform audit procedures Secondly, in many case, auditor does not receive a positive attidude of cooperation from clients as auditor detects misstatements and asks them to explain or modify Thirdly, most of auditors of T.D.K are high competence and experienced in audit, thus, they often base on their subjective judgment without professional skepticism during performing audit for clients and they often trust on internal control systems on cash and bank without check whether there is any collusion between clients staff and bank staffs Forthly, the number of auditors currently is not enough to serve for auditing demand when the number of listed companies is creasing, which challenges T.D.K to conduct an audit as quickly as possiblely so that T.D.K tend to eliminate some audit procedures 3.2 DEVELOPMENT ORIENTATION AND NECESSITY OF COMPLETING THE AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCILA STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 3.2.1 Development orientation of Thang Long In the trend of international economic integration, building and raising brand value is more and more important for audit firms Understanding that, tdk has been trying to raise brand awareness, expand market, increase client’s satisfication by providing the highest quality services at reasonable and competitive audit fees T.D.K’s Board of Director desires to Provide customers with breakthrough solutions; Invest significantly in recruiting and training employees to help T.D.K.'s auditors have the highest competence and ethics; Understand the business sector as well as the 74 characteristics of each customer; Ensure that services are provided efficiently, appropriately and on time; Ensure a strict quality control system; Apply the most advanced auditing and consulting methods; Provide value-added services in all audits and consultations; express dedication and thoughtfulness to all concerns of customers T.D.K’s aspirations: Become a leading company in the audit and consulting field, Become a highly reputable enterprise to attract candidates in the labor market; Providing customer service with the highest quality by maintain the highest professional standards; always be self-motivated, breakthrough during providing services 3.2.2 The necessity of completing the audit procedures for cash and bank accounts on financial statements at Thang Long – T.D.K Auditing and Valuation company, Ltd The first reason is the necessity of independent audit on the economy Currently, in the development of science and technology, the role of information on the economy is becoming more and more important than ever Capturing accurate information will help investors make the right decisions As well as for the financial position of a company, the financial statements are the statements of the wealth of the entity It helps the stakeholders as well as the government agencies to make a grasp of the entity’s operation as the fluctuations in assets and capital of enterprises to make high-precision decisions From that, independent audit firms contribute to verifying the truth and fair of the information presented on the financial statements Since then, the financial statements of the company become more reliable for intended users The second reason is the important role of cash and bank for financial statements The cash and bank accounts not only affects the ability of the entity’s payment, but it also affects the important cycles such as purchasing cycle, revenue cycle, and payroll cycles which reflect almost business’s operation in a fiscal year Thus, completing the audit procedures for cash and bank accounts on financial statement will also improve the efficiency of auditing for many other cycles The third reason is the restrictions of audit procedures for cash and bank at T.D.K 75 The weaknesses analyzed above will increase audit risk for the audit, which leads auditors to provide inaccurate audit opinions Moreover, it also makes auditors evenwho have high competence have mistakes during performing audit procedures Hence, The completing of audit procedures for cash and bank accounts on the financial statement will contribute to reduce audit risk, raise the quality of the assurance services provided for clients and increase T.D.K’s prestige and market share in the audit field in Vietnam Moreover, completion of audit process is the objective requirement for each audit firms in its development 3.3 REQUIREMENTS AND RULES FOR COMPLETING THE AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCILA STATEMENTS AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 3.3.1 Requirements for completing the audit procedures for cash and bank accounts To complete the audit procedure for cash and bank accounts efficiently, the audit firm needs to fully meet the following requirements: ü For auditor - Understanding knowledge of accounting and auditing; - Regularly improving knowledge of accounting, auditing and tax; and updating new regulations and circular about accounting, audit and consulting field; - Strict compliance with Vietnamese Standard on Auditing and relevant regulations, flexible performance in audit process contributed by audit firm; - Always comply wiht the fundamental principles set out in the Code of Ethics and Conduct including: confidentiality, integrity, objectivity, professional competence and due care, professional behavior; ü For audit firm - Regulary updating new circulars and regulations of accounting and auditding issued by Ministry and other relevant documentations; 76 - Developing an audit process for cash and bank accounts as well as other accounts in logical and suitable for each type of business in order to ensure the audit achieve high quality, effeciency and savings cost and time; - Managing the quality of the audit by inspecting and supervising the implementation of each auditor and ensuring the audit always conducted through phases: planning, execution and completion; - Raising auditor’s professtional competence through developing trainning services 3.3.2 Rules of completing the audit procedures for cash and bank accounts The completing the audit procedures for cash and bank accounts on financial statements at Thang Long – T.D.K Auditing and Valuation Company, Ltd need to complies the following principles: Firstly, the completion must be in accordance with international practices and integration trends Secondly, the completion must be in accordance with the political and legal system and specific conditions of Vietnam Thirdly, the completion must be simple, clearly, easy to perform, inspect, control and save cost In addition, it is necessary to focus on the rewarding remuneration to encourage the working spirit of employees as well as the discipline, criticism and self-criticism for any mistake to ensure the principles of operations of the company 3.4 PROPOSALS FOR COMPETING AUDIT PROCEDURES FOR CASH AND BANK ACCOUNTS ON FINANCIAL STATEMENT AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 3.4.1 Planning phase The planning phase is always carried out carefully and follow the guidence of VSA Auditor who has responsiblity for this phase must thoroughly concern information related clients as the characteristics of business, the position of the entity in the industry and the competive of clients in the market in order to have accurate assessment of audit risk to develop appropriate audit plan 77 Moreover, audit strategy formulated by most of audit currently is risk-based approach strategy, therefore the understanding of internal control system ought to be concentrated for all clients including new and close clients, so that auditors have the objective assess about client’s internal control system 3.4.2 Execution phase Firstly, completion of test of control The firm should build questionaires about internal control which is suitable for each type of enterprises Auditor should perform test of control more regularly as cash and bank accounts have pervasivity for financial statement, and choose a sufficient samples of documents to check whether internal control is effective and identify the deficiency of internal control to focus on performing substantive tests Thereby, auditor could make more accurate conclusions about the effectiveness of internal control and reduce detection risk for the audit Secondly, completion of substantive analytical procedures Any fluctuations related to cash and bank accounts should be considered whether they have reasonable explainations or any suspection of misstatements To explore maximum advantages of analytical procedures, auditors should use various types of analysis as vertical analysis, horizontal analysis, trend analysis and ratio analysis and using the information of other competitions of the clients and average industry Consequently, T.D.K needs to obtain and build a information system which is popular and presentative for each industry, in order to easily approach and perform to provide persasive evidences and reasonable opinions Moreover, analytical procedures is evaluated to be the least costly, thus, analytical used effectively helps the firm save audit cost Thirdly, completion of test of details T.D.K should implement the observation of cash count in the client at period end sufficiently for all clients even that they have large amount of cash on hand or not In case the firm can not inspect directly the client’s cash counts in the period end, auditor need to perform other cash count accidently during the audit Auditor should expand sample sizes to test of details for transactions occuring after year end to obtain sufficient evidences about cut – off, occurence (existence), completeness assertions Besides, 78 T.D.K should combine diversified sampling methods as random, systematic, haphazard, block and monetary unit sampling for audit test in order to reduce sampling risk 3.4.3 Completion phase Firstly, tdk should mention the deficiency of internal control for clients to detect limitations and complete their internal control system Secondly, T.D.K should complete audit files including not only working papers in execution and completion phases, but also need to dignify the audit documentations in phanning phase The completing audit documentations for phanning phase helps auditor and audit associates in case next year, they continues providing assurance service for the same clients, they can conveniently monitor and have reasonable reference on audit planning for the following year better Besides that, auditor should complete all sections on the working papers such as sampling methods, which audit test used, who is reviewers, who is responsibility for this process… The working papers which has not been clearly should be rewritten more clearly and fully Last but not the least, each auditor should create a schedule of audit procedures for clients by themselves such as when to inspect cash count, when test of cut-off,…in order to obtain sufficiently appropriate evidences for the audit as well as they could have enough time to perform enough audit procedures follows audit plan Moreover, during the audit, base on the schedule of audit from each member, auditor in charge could easily manage their performance and ensure that all members in audit team complete their task in time as well as provide the basic to commend and reward at year end This also helps auditor in charge and audit manager keep working papers under review to control the quality of the audit 3.5 CONDITIONS TO IMPLEMENT PROPOSALS 3.5.1 To Thang Long – T.D.K Auditing and Valuation Company, Ltd The audit process for financial statement at T.D.K should be complied to the decisions and regulations issued by the company These documents must be in accordance with the policies and requirements of the government agencies and the Ministry of Finance in accordance with Vietnamese accounting standards and Vietnamese standard on auditing as well as international standards 79 The company needs to pay attention regularly in training, improving qualifications and updating new documents about accounting – auditing field as well as other fields for employees Besides, T.D.K should maintain and enhance remuneration incentives to encourage employee’s spirit as well as disciplinary, critical and self-criticism to ensure the company's principles of operation The company should also encourage and create more conditions for its employees to participate in professional training courses such as ACCA, CPA and learning foreign languages, creating favorable conditions for communication and signing of contracts with foreign partners Because the providing assurance services for clients who are foreign-invested enterprises of T.D.K in Vietnam are limited, so that expanding the audit of these clients will help the firm improve its reputation and scale in the market 3.5.2 To clients The factors related to clients are very important During the audit process, auditor needs to communicate with client to gather client’s information This is also an important technique for auditors to implement in every audit In order to be able to improve the audit process, auditor needs the support from the client as facilitating auditors during the audit at the entity, providing enthusiasm and honesty in the enquiry process as well as in collaboration with auditors to handle issues, providing sufficient documents to help auditor complete the audit The enterprise should also manage and store accounting invoices, accounting book and accounting documents in a reasonable way to facilitate auditor during audit 3.6 PROPOSALS FOR THE THESIS 3.6.1 Limitations of the thesis The thesis attempted to help Thang Long – T.D.K Audit and Valuation company, Ltd to improve the audit procedures for cash and bank accounts on Financial Statement Despite considerable efforts in the enhancement of validity and reliability of research findings, this study was subjected to some limitations Firstly, since the research method used in the thesis is based on the observation and interview the auditors at T.D.K, and the case to illustrate the audit procedures for cash and bank accounts on Financial Statement at Thang Long – T.D.K Audit and Valuation 80 company, Ltd was not performed by author, hence, it is high possibility that some restrictions in the audit could not be detected Secondly, at Thang Long – T.D.K Audit and Valuation company, Ltd the audit procedures for cash and bank accounts often coordinate with the audit for other relevant cycles, thus the analysis for only audit procedures for cash and bank accounts as in the thesis did not comprehensively appraise results of audit as well as the audit procedures for cash and bank accounts on Financial Statement at Thang Long – T.D.K Audit and Valuation company, Ltd Thirdly, the thesis is analyzing the audit procedures for cash and bank accounts of only one clients audited by Thang Long – T.D.K Audit and Valuation company, Ltd, which could not be representative of the whole T.D.K’ clients and because of confidentiality of some information, thus author has not appoached the whole audit files as well as T.D.K documentations about the audit for clients Therefore, this analysis could not reflect objectively the actual audit procedures for cash and bank accounts on Financial Statements performed by Thang Long – T.D.K Audit and Valuation company, Ltd Finally, due to limitations of knowledge as well as experiences in audit for cash and bank accounts on Financial Statements and the approaching relevent information was not plentiful and diversified Therefore, some comments and conclusions through the research could be inadequate and inaccurate, as well as the recommendations given still were based on theory and not practicable, which leads to the thesis is not success as whole Moreover, the understanding about the Scientific research is not deeply, which leads to the studying about subject of research was not perfect, thereby the thesis has not been successful and meaningful 3.6.2 Recommendations for thesis success To make the thesis become more successful, some recommendations below might help author improve the thesis Firstly, the author should obtain more the audits of cash and bank accounts on Finacial Statements performed by Thang Long – T.D.K Audit and Valuation company, Ltd for variety clients which are difference in type of ownership, industry fields and scope of operation, so as to analyze and make comments in objective view 81 Because cash and bank accounts related to most accounting cycles, thus author should consider to study audit procedures for other important accounts during analysis in order to judge the audit procedures for cash and bank accounts on Financial Statement at Thang Long – T.D.K Audit and Valuation company, Ltd Moreover, author needs to improve the knowledge as well as experiences of audit for cash and bank accounts to give the better and more applicable proposals, which help the thesis is more successful Beside the improvement of author, the supports from the univeristy also play important roles to develop the thesis such as: providing the lessons about the Scientific research to help students comprehend how to Scientific research well as well as understand the meanings of Scientific research, updating and increasing the documents and resources which helps students approach diversified information served for the thesis 82 CONCLUSION CHAPTER Chapter has given some comments on the audit procedures for cash and bank accounts on financial statements performed by Thang Long – T.D.K Auditing and Valuation company, Ltd including: advantages, disadvantages and reasons for those restrictions Therefore, some proposals for completing the audit procedures for cash and bank accounts on financial statements at Thang Long – T.D.K Auditing and Valuation company, Ltd has been offered base on requirements, rules and conditions to implement Chapter also gives some recommendations to help the thesis overcome the limitations have been occured 83 Bibliography International Federation of Accountants, 2009, International Standards on Auditing 200 (ISA200) “Overall Objectives of the Independent Auditor and the Conduct of an Audit in accordance with International Standards on Auditing”, 15/12/2009 International Federation of Accountants, 2009, International Standards on Auditing 300 (ISA300) “Planning an Audit of Financial Statements”,15/12/2009 International Federation of Accountants, 2009, International Standards on Auditing 315 (ISA315) “Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment”, 15/12/2009 International Federation of Accountants, 2009, International Standards on Auditing 320 (ISA320) “Materiality in Planning and Performing an Audit”, 15/12/2009 International Federation of Accountants, 2009, International Standards on Auditing 520 (ISA520), “Analytical Procedures”, 15/12/2009 Ministry of Finance 2014, Circular 200 “Guidlines for accounting policies for enterprises”, 22/12/2014 Mishkin, FS 2016, ‘What is money?’, in The Economics of Money, Banking, and Financial Markets, 11th edn, Pearson Education,London, pp 95-98 84 ... 36 CƠNG TY TNHH KIỂM TỐN VÀ ĐỊNH GIÁ D310 Tên Ngày THĂNG LONG – T.D.K Người thực GĐH 02/02/2021 Tên khách hàng: Công ty cổ phần ABC Người soát xét NHH 02/02/2021 Ngày kết thúc kỳ kế toán: 31/12/2020... 02/02/2021 Nội dung: CHƯƠNG TRÌNH KIỂM TỐN - TIỀN VÀ CÁC KHOẢN TƯƠNG ĐƯƠNG TIỀN A Xử lý Tham Có thỏa sở chiếu mãn với dẫn giấy kết liệu làm việc không? D111 Yes Thủ tục chung Kiểm tra sách kế tốn có... AT THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 2.1 OVERVIEW OF THANG LONG – T.D.K AUDITING AND VALUATION COMPANY, LTD 2.1.1 General information - Company name: Thang Long – T.D.K Auditing