(Đồ án tốt nghiệp) completing the process of auditing the receivable items and revenue at TV audit and consulting company limited

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY HIGH QUALITY GRADUATION THESIS MAJOR ACCOUNTING COMPLETING THE PROCESS OF AUDITING THE RECEIVABLE ITEMS AND REVENUE AT TV AUDIT AND CONSULTING COMPANY LIMITED STUDENT’S NAME: NGUYỄN THỊ QUỲNH STUDENT’S ID: 17125083 INSTRUCTOR: NGUYEN THI LAN ANH SKL007820 Ho Chi Minh City, March 2021 HOCHIMINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY HIGH QUALITY GRADUATION THESIS COMPLETING THE PROCESS OF AUDITING THE RECEIVABLE ITEMS AND REVENUE AT TV AUDIT AND CONSULTING COMPANY LIMITED STUDENT’S NAME STUDENT’S ID ACCADEMIC YEAR MAJOR GVH : NGUYEN THI LAN ANH Tp Hồ Chí Minh, tháng 03 năm 2021 CỘNG HÒA XÃ HỘI CHỦ NGHĨA VIỆT NAM Độc l p – T – Hạnh phúc *** Tp Hồ Chí Minh, ngày tháng năm 2021 NHIỆM VỤ KHÓA LUẬN TỐT NGHI ỆP Họ tên sinh viên: Ngành: Giảng viên hướng dẫn: Ngày nh n ề tài: MSSV: Lớp: ĐT: Ngày nộp ề tài: Tên ề tài: Các số liệu, tài liệu ban ầu: Nội dung th c ề tài: Sản phẩm: TRƯỞNG NGÀNH GIẢNG VIÊN HƯỚNG DẪN i CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM Độc lập – Tự – Hạnh Phúc ******* PHIẾU NHẬN XÉT CỦA GIÁO VIÊN HƯỚNG DẪN Họ tên Sinh viên: MSSV: Ngành: Tên ề tài: Họ tên Giáo viên hướng dẫn: NHẬN XÉT Về nội dung ề tài & khối lượng th c hiện: Ưu iểm: Khuyết iểm: Đề nghị cho bảo vệ hay không? Đánh giá loại: Điểm:……………….(Bằng chữ: ) ii Tp Hồ Chí Minh, ngày tháng Giáo viên hướng dẫn (Ký & ghi rõ họ tên) năm 20… CỘNG HOÀ XÃ HỘI CHỦ NGHĨA VIỆT NAM Độc lập – Tự – Hạnh Phúc ******* PHIẾU NHẬN XÉT CỦA GIÁO VIÊN PHẢN BIỆN Họ tên Sinh viên: MSSV: MSSV: MSSV: Ngành: Tên ề tài: Họ tên Giáo viên phản biện: NHẬN XÉT Về nội dung ề tài & khối lượng th c hiện: Ưu iểm: Khuyết iểm: iii Đề nghị cho bảo vệ hay không? Đánh giá loại: Điểm:……………….(Bằng chữ: ) thán năm 20… Tp Hồ Chí Minh, ngày g Giáo viên phản biện (Ký & ghi rõ họ tên) iv ACKNOWLEDGEMENTS In order to be able to perform and complete this graduation thesis well, over the past time I have received a lot of attention and enthusiastic help from many sides including the teachers in the Faculty High Quality Training of HCMUTE, the instructor and the company in which I intern I would like to sincerely express my gratitude and appreciation to the teachers in the Faculty High Quality of Ho Chi Minh City University of Technology and Education for equipping me with knowledge and help throughout my time studying at the school In particular, I would like to send my sincere and deep appreciation to teacher Ms Nguyen Thi Lan Anh, who gave me a lot of guidance and supported me in the process of researching and implementing this thesis In addition, I would like to thank the Chief of Accounting - Auditing Department of TV Audit and Consulting Company limited and the brothers and sisters in the department for guiding, helping and creating favorable conditions for me to successfully complete work during the internship as well as completing the thesis Because of limited knowledge and experience, the thesis will inevitably avoid some shortcomings Therefore, I hope to receive sincere comments and suggestions from teachers and readers for my research thesis to be broader and more complete v SUMMARY Receivable and Revenue audit are indispensable activities of the business when auditing financial statements Because those items are spone to frauds and errors that can have a significant impact on the financial situation of enterprises During the internship at TV Audit and Consulting Company limited the writer recognized the importance of those items in Auditing Financial Statement Therefore, the writer has chosen the topic “Completing the process of auditing the receivable items and Revenue at TV Audit and Consulting Company limited” for the graduation thesis In this thesis, the writer will go from Chapter to introduce about TV Audit and Consulting Company limited Chapter Theoretical basis for receivables and Revenue auditing in auditing financial statements Chapter3 Receivables and Revenue audit process status at TV Audit And Consulting Company Limited Evidence of actual auditing at ABC Company Since then chapter Proposing a solution for completing the audit process of receivables and Revenue at TV Audit And Consulting Company Limited vi Contents LIST OF IMAGES .x LIST OF DIAGRAMS xi LIST OF TABLES .xii REFERENCES xiii PART 1: INTRODUCTION CHAPTER 1: INTRODUCTION ABOUT TV AUDIT AND CONSULTING COMPANY LIMITED 1.1 Introduction about TV Audit and Consulting Company limited 1.2 History and development of TV Audit and Consulting Company limited 1.3 Principles, objectives, operating directions of TV Audit and Consulting Company limited 1.3.1 Principles of operation of the company .3 1.3.2 TV's corporate goals 1.3.3 The direction of TV company 1.4 The services the company provides 1.4.1 Auditing service 1.4.2 Accounting services .5 1.4.3 Consulting service .5 1.5 Management organizational characteristics of the Company .6 1.5.1 Management apparatus diagram of the company 1.5.2 Functions and duties of each department .6 1.6 Organization of accounting at the company .7 1.6.1 Accounting apparatus structure of the company 1.6.2 Accounting bookkeeping form .7 1.6.3 Accounting method that the company use 1.6.4 Accounting standards 1.6.5 Accounting policies applied at the company vii 1.6.6 Advantages, disadvantages and direction of development 1.7 Auditing process at TV company 10 1.7.1 Prepare the audit 12 1.7.2 Conduct audits 16 CHAPTER THEORETICAL BASIS OF THE AUDITING PROCESS ON REVENUE AND CUSTOMERS RECEIVABLES 20 2.1 General revenue issues 20 2.1.1 Concept 20 2.1.2 Characteristics of Revenue 20 2.1.3 Revenue recognition principles 21 2.1.4 Audit Objectives of Revenue 22 2.1.5 Revenue accounting principles 22 2.1.6 Common risks in revenue audit 23 2.2 General problems about customer receivables 24 2.2.1 Concept 24 2.2.2 Characteristics and position of the receivable on the financial statements 24 2.2.3 Receivable accounting principles 24 2.2.4 Audit Objectives of receivable 26 2.3 Internal control with revenue and customer receivables 26 2.4 The process of auditing revenue and receivable items 29 2.4.1 Researching and evaluating the internal control system 29 2.4.2 Perform basic tests 32 CHAPTER AUDIT PROCESS ON SALES AND LIABILITIES ITEMS OF TV AUDIT AND CONSULTING COMPANY LIMITED AT CK&A CONSULTANCY INTERNATIONAL (VIETNAM) CO., LTD 39 3.1 General introduction about customers 39 3.1.1 The company's information 39 3.1.2 Accounting standards and accounting system 39 viii collection cycle, the company also needs to learn about the accounting policies applied in this cycle The company should update and organize training in the application of software to the audit The data processing by software will help the auditor to perform faster and with high accuracy, and improve the auditing profession Currently, on the market there are many good audit management softwares such as CAATTs, AS2, ALC, companies can refer and use it to improve quality as well as archive audit records 64 APPENDIX Appendix PART1 Auditing firms have sufficient personnel with professional necessary resources to continue serving the Client Are there any doubts that arise in the working process regarding the integrity of the Board of Directors of enterprises? Does the audit report on the previous year's financial statements have "an audit opinion is not a fully accepted opinion"? Is there any indication that a repetition of the problem led to such an audit opinion this year? Are there any restrictions on the scope of the audit that lead to the exclusion / refusal of an opinion on this year's auditor's report? Are there big doubts about the ability of businesses to operate continuously? Are there adverse issues, lawsuits, unusual disputes, and significant risks to the business activities of the company? 65 Are there many important transactions with related parties? Is there any unusual transaction during the year or at the end of the year? Does the company have controversial accounting or professional issues, but the current accounting standards and regimes not have specific instructions? During the audit process of the previous year, did the audit find serious defects in the internal control system of the enterprise? There are signs that the internal control system of enterprises this year has serious defects affecting the compliance with the law, the fairness of the financial statements? Appendix CRITERIA Criteria estimate materiality Total profit before tax: 5% - 10% Revenue: 0,5% - 3% Total 2% Overall materiality level Total net before tax: 5% 10% Revenue : 0,5% - 3% Total assets &Equity: 2% Materia lity level implementa tion Total net before tax: 5% 10% Revenue : 0,5% - 3% Total assets &Equity: 2% Smallest value criteria Materiality selected Total assets &Equity: 2% in is 68 Appendix Appendix 69 Appendix 70 CONSULTANCY INTERNATIONAL (VIETNAM) CO., LTD 31 Phan Boi Chau Street, Ward 14, Binh Thanh District, HCMC REPORT OF THE BOARD OF MANAGEMENT The Board of Management of CK&A CONSULTANCY INTERNATIONAL (VIETNAM) CO., LTD (the “Company”) presents their reports and the Company's Audited Financial statements for the fiscal year ended as at 31/12/2019 I THE COMPANY Form of ownership CK&A Consultancy International (Vietnam) Co., Ltd is the company established in Vietnam in accordance with Investment Certificate No 411022000110, the first time dated 04 September 2007 and the sixth amended dated 10 July 2018 issued by The People's Committee of Ho Chi Minh City The company is located at 31 Phan Boi Chau Street, Ward 14, Binh Thanh District, HCM City, Vietnam The legal capital in Investment Lisence is Shareholders MR CHIN KAM MR MAI DUC BAO Total Business fields Architectural and Engineering Business lines - Principal activities of the Company are Engineering services (CPC 8672); Urban planning and landscape architectural services (CPC 8674) AI OPERATING RESULTS Operating results of the Company and the financial situation at the date of 31/12/2019 are presented in the accompanying audited financial statements BI EVENTS SINCE THE BALANCE SHEET DATE - THE BOARD OF MANAGEMENT AND GENERAL DIRECTOR, CHIEF ACCOUNTANT IV REPRESENTATIVE Mr Mr Director Vice General Director V AUDITOR The auditors of TV - AICA Auditing and Consulting Company Limited take the audit of financial statements for the Company VI STATEMENT OF THE BOARD OF MANAGEMENT RESPONSIBILITY IN RESPECT OF THE FINANCIAL STATEMENTS Management is responsible for the financial statement of each financial year which give a true and fair view of the state of affairs of the Company and of its results and its cash flows for the fiscal year ended as at 31/12/2019 In preparing those financial statement, management is required to: State whether applicable accounting standar - the financial statements; - Select suitable accounting policies and then - Make judgments and estimates that are reas Prepare the financial statements on the basis of compliance with accounting standards and system and other related regulations; - Prepare the financial statements on going concern basis Management is responsible for ensuring that proper accounting records are kept which disclosed, with reasonable accuracy at any time, the financial position of Company and to ensure that the accounting records comply with the registered accounting system It is responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities We, the Board of Management, confirm that the financial statements for the fiscal year ended as at 31/12/2019, its operation results and cash flows in the for the fiscal year ended as at 31/12/2019 of Company accordance with the Vietnamese Accounting System and comply with relevant statutory requirements VII APPROVAL OF FINANCIAL STATEMENTS We, the Board of Management of CK&A CONSULTANCY INTERNATIONAL (VIETNAM) CO., LTD approve our Financial Statements for the fiscal year ended as at 31/12/2019 H J Vice General Director 72 Mai Duc Bao (Delegation of Power No 01-QĐ/CK dated 04 September 2010) APPENDIX No : TC /2019/BCKT- INDEPENDENT AUDITOR’S REPORT To: The owner, Chairman and General Director of CK&A CONSULTANCY INTERNATIONAL (VIETNAM) CO., LTD We have audited the financial statement of CK&A CONSULTANCY INTERNATIONAL (VIETNAM) CO., LTD, prepared on 10/01/2020, as set out on pages 06 to 22, which comprise the Balance Sheet as at 31/12/2019, the Statement of Income, Cash Flows and Notes to Financial Statement for the fiscal year 2019, ended at 31/12/2019 Management’s responsibility Management is responsible for the preparation and fair presentation of these financial statements in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System for Enterprises and the relevant statutory requirements applicable to financial reporting, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with Vietnamese Audit Standards Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statement are free from material misstakement An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion 73 ... those items in Auditing Financial Statement Therefore, the writer has chosen the topic ? ?Completing the process of auditing the receivable items and Revenue at TV Audit and Consulting Company limited? ??... UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY HIGH QUALITY GRADUATION THESIS COMPLETING THE PROCESS OF AUDITING THE RECEIVABLE ITEMS AND REVENUE AT TV AUDIT AND CONSULTING COMPANY LIMITED STUDENT’S... ABOUT TV AUDIT AND CONSULTING COMPANY LIMITED 1.1 Introduction about TV Audit and Consulting Company limited Company? ??s name: TV AUDIT AND CONSULTING COMPANY LIMITED Abbreviation name: TV – AICA Auditing