Audit of revenues in financial audit conducted by an viet auditing limited company

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATIONAL PROGRAM

BACHELOR THESIS

Major: Auditing

AUDIT OF REVENUES IN FINANCIAL AUDIT

CONDUCTED BY AN VIET AUDITING LIMITED COMPANY

NGUYEN THE VINH

HANOI - 2020

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATIONAL PROGRAM

BACHELOR THESIS

Audit of Revenues in Financial Audit

Conducted by An Viet Auditing Limited Company

Student : Nguyen The Vinh

Specialty : Auditing

Class : Excellent Audit 58B

Student’s ID : 11165966

Supervisor : Dr. Dinh The Hung

HANOI - 2020

ACKNOWLEDGEMENTS

I place on record, my sincere thanks to the instructors Dr. Dinh The Hung in the

School of Accounting and Auditing, National Economics University, for all

enthusiastic support and instructions in completing my Bachelor Thesis.

I would like to express strong gratitude to Anviet Auditing Company Limited

for all the support during my internship. Especially Mrs. Ta Thi Tham and Mr. Dang

Duy Linh who guide me in fieldworks and share with me a lot of new great things, I

take this opportunity to send them my sincere thanks.

I would also like to thank my parents and friends who helped me a lot in

finalizing this project within the limited time frame.

Sincerely thanks!

Nguyen The Vinh

TABLE OF CONTENT

ACKNOWLEDGEMENTS...........................................................................................i

ABBREVIATIONS......................................................................................................v

INTRODUCTION........................................................................................................1

CHAPTER 1: CHARACTERISTICS OF AUDIT OF REVENUES IN FINANCIAL

AUDITS CONDUCTED BY ANVIET CPA................................................................3

1.1. Characteristics of revenues of clients affecting financial audits.............................3

1.1.1. Features of revenues on financial statements................................................3

1.1.2. Accounting for revenues...............................................................................4

1.1.3. Common misstatements related to revenues.................................................7

1.1.4. Internal Control for Revenues.......................................................................8

1.2. Audit objectives and requirements of auditing revenues in financial audits

conducted by An Viet CPA...........................................................................................8

1.2.1. Audit objectives of auditing revenues.................................................................8

1.2.2. Requirements of auditing revenues.....................................................................9

1.3. Audit of revenues in financial audits process conducted by An Viet CPA...........10

1.3.1. Planning the audit................................................................................................10

1.3.2. Implementing the audit.......................................................................................17

1.3.3. Completing the audit..........................................................................................23

CHAPTER 2: PRACTICE OF AUDIT OF REVENUES IN FINANCIAL AUDITS

CONDUCTED BY AN VIET CPA............................................................................24

2.1. Practice of audit of revenues in financial audits conducted by An Viet CPA at

ABC Beer JSC............................................................................................................24

2.1.1 Planning the audit.................................................................................................24

2.1.2. Implementing the audit.......................................................................................43

2.1.3. Completing the audit...........................................................................................71

CHAPTER 3: ASSESSMENTS AND RECOMMENDATIONS FOR IMPROVING

THE AUDIT OF REVENUES IN FINANCIAL AUDITS CONDUCTED BY AN

VIET CPA...................................................................................................................73

3.1. Assessments of the audit of revenues in financial audits process conducted by An

Viet CPA.....................................................................................................................73

3.1.1. Strengths...............................................................................................................73

3.1.2. Weaknesses and causes.......................................................................................75

3.2. Recommendations for improving the audit of revenues in financial audits process

conducted by An Viet CPA.........................................................................................77

CONCLUSION...........................................................................................................78

REFERENCES...........................................................................................................79

LIST OF FIGURES

Figure 1.1. Audit planning order..............................................................................................10

Figure 1.2. Implementation of effective tests of control..........................................................19

Figure 2.1. Related parties of ABC Beer Joint Stock Company..............................................27

Figure 2.3. Income Statement Analysis of ABC Beer Joint Stock Company.........................28

Figure 2.4. Assess materiality at ABC Beer JSC....................................................................33

Figure 2.5. The questionnaire explores the internal control system for the revenues at ABC

Beer Joint Stock Company......................................................................................................36

Figure 2.6. Revenues Audit Program.......................................................................................37

Figure 2.7. G140 - Revenues Summary..................................................................................48

Figure 2.10. Determination of factor R...................................................................................54

Figure 2.11. G142 – Revenues detailed test............................................................................58

Figure 2.12. G143 – Revenues cut-off check..........................................................................60

Figure 2.13. G144 – Trade discount check..............................................................................64

Figure 2.14. G145 – Trade discount detailed test....................................................................66

Figure 2.15. E342 – SCT Estimation......................................................................................68

Figure 2.16. SUMMARY OF AUDIT RESULTS...................................................................71

STATUTORY DECLARATION

I herewith formally declare that I myself have written the submitted Bachelor

Thesis independently. I did not use any outside support except for the quoted literature

and other sources mentioned at the end of this paper.

Hanoi, 2020

Signature,

Nguyen The Vinh

v

ABBREVIATIONS

An Viet : An Viet Auditing Limited Company

ANVIETCPA : An Viet Auditing Limited Company

An Viet Auditing Co., Ltd : An Viet Auditing Limited Company

VAS : Vietnamese Accounting Standards

VSA: Vietnamese Standards on Audit

BOM: Board of Managements

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