Organizing audit practice at amber auditing and financial consulting company limited

ort on Auditing Internship 1 Report on Auditing InternshipSupervisor PhD Nguyen Thi My “Table of Contents LIST OF ABBREVIATION 1 LIST OF TABLES AND FIGURES 2 INTRODUCTION 3 CHAPTER 1 CHARACTERISTICS O[.]

“Table of Contents

LIST OF ABBREVIATION 1

LIST OF TABLES AND FIGURES 2

INTRODUCTION 3

CHAPTER 1: CHARACTERISTICS OF THE ORGANIZATION AND OPERATIONS OF AMBER AUDITING AND FINANCIAL CONSULTING COMPANY LIMITED 5

1.1 History of development of AMBER AUDIT CO.,LTD 5

1.2 Operating characteristics of the company 6

1.2.1 Financial Auditing 8

1.2.2 Audit of settlement of investment capital 8

1.2.3 Consulting services 9

1.2.4 Accounting services 10

1.2.5 Training, seminars 10

1.3 Management of AMBER AUDIT CO., LTD 13

CHAPTER 2: ORGANIZING AUDIT PRACTICE AT AMBER AUDITING AND FINANCIAL CONSULTING COMPANY LIMITED 16

2.1 Organizing an Audit Team 16

2.2 Audit Process 18

2.2.1 Planning the audit 20

2.2.2 Implementing the audit 24

2.2.3 Completing the audit 26

2.3 Audit files 27

2.4 Audit quality controls 30

2.4.1 Audit quality control in planning phase 31

2.4.2 Audit quality control in audit implementation phase 32

2.4.3 Audit quality control in audit completion phase 33

CHAPTER 3: ASSESSMENTS AND RECOMMENDATIONS FOR IMPROVING ORGANIZATION AND OPERATIONS OF AMBER AUDIT AND FINANCIAL CONSULTING COMPANY LIMITED 34

3.1 Assessments off the organization and operations of AMBER

AUDIT AND FINANCIAL CONSULTING COMPANY LIMITED 34 3.1.1 Strengths 34

3.1.2 Limitations and causes 36

3.2 Recommendations for improving the organization and

operations of AMBER AUDIT AND FINANCIAL CONSULTING

COMPANY LIMITED 37 CONCLUSION 39 "

1

LIST OF ABBREVIATION

COMPANY LIMITED

LIST OF TABLES AND FIGURES

Table 1.1: Consolidated revenue in 2018, 2019………11Figure 1.1: Revenue structure of the company in 2018………12Figure 1.2: Revenue structure of the company in 2019……… 12Chart 1.1: Organizational structure of management apparatus of AMBERAuditing Company Limited……… 14Diagram 2.1: Audit process of aviation gasoline company……… 19

INTRODUCTION

Auditing is a “top priority field in the economy today, making readersbelieve in the transparency of financial information as well as product quality.The audit system ensures the truthfulness, objectivity and reasonableness offinancial and economic information, especially information on financialstatements of economic sectors At the same time, the audit also helpsbusinesses to have a reasonable change in the way of management as well asprovide positive policies for production and business activities of”thebusiness

Developed “together with the market economy, the field of auditing hasbeen established and developed strongly throughout the world and in thecountry of Vietnam over the past twenty years, becoming a top priority and apriority indispensable requirements for production and business activities ofenterprises Auditing has shown its role in this developed economy, it goesinto every business from large to small It can be said that auditing is anextremely important and indispensable part of making the country better andits economy significantly”improved

“Independent auditors have actively participated in checking and evaluatingthe reliability of financial information, contributing to the innovation ofproduction as well as civilization of the economy today Independent auditorsalso contribute to attracting investment capital from abroad, facilitatingeconomic development for the country of Vietnam.”

During my internship at AMBER Auditing and Financial Consulting Co.,Ltd., thanks to the enthusiastic help of our employees, I had direct contact andmore knowledge about development history, special operation point,management organization and audit organization of the company Since then Ihave gained insights to better prepare myself for the understanding anddirection of the audit internship stage The report consists of 3 parts:

 “CHAPTER 1: CHARACTERISTICS OF THE ORGANIZATION AND OPERATIONS OF AMBER AUDITING AND FINANCIAL CONSULTING COMPANY LIMITED

 CHAPTER 2: ORGANIZING AUDIT PRACTICE AT

AMBER AUDITING AND FINANCIAL CONSULTING COMPANY LIMITED

 CHAPTER 3: ASSESSMENTS AND RECOMMENDATIONS

FOR IMPROVING ORGANIZATION AND OPERATIONS

OF AUDIT AND FINANCIAL CONSULTING COMPANY LIMITED”

I would like to express my sincere thanks to the PhD Nguyen Thi My lecturer of the Institute of Accounting and Auditing of National EconomicsUniversity; the Board of Directors and the staff of Auditing Co., Ltd and TheAMBER consultants have been dedicated to helping me with the rightorientation, collecting adequate and appropriate information to successfullycomplete this report

CHAPTER 1: CHARACTERISTICS OF THE ORGANIZATION AND OPERATIONS OF AMBER AUDITING AND FINANCIAL

CONSULTING COMPANY LIMITED

1.1 History of development of AMBER AUDIT CO.,LTD.

- Headquarters of AMBER Auditing and Financial ConsultingCo., Ltd at Floor 9A, Leadvisors Place, 41A Ly Thai To, LyThai To Ward, Hoan Kiem District, Hanoi

- AMBER Auditing and Financial Consulting Co., Ltd(abbreviated AMBER AUDIT CO., LTD) was established in

2018 under “Business Code: 0108386863 by Department ofPlanning and Investment Hanoi issued on August 2, 2018,registered for the 1st amendment on November 1, 2018.AMBER Auditing and Financial Consulting Co., Ltd.(abbreviated AMBER AUDIT CO., LTD) is an officialmember of Vietnam Association of Certified PublicAccountants (VACPA) The Company understands that servicequality, enthusiasm, professional style and reasonable servicecosts are the Basic factors fostering trust and buildingsustainable cooperation relationships with customers AMBERAUDIT CO., LTD is made up of auditors, consultants withbasic training, enthusiasm for the profession, with extensiveresearch and practical experience in accounting, auditing,corporate governance , financial management, along with thedesire to build a reputable brand of auditing and consulting inVietnam”, Asia, Pacific and around the world

- With the view to developing "Crystallizing values, Cultivatingbeliefs", the Company creates value of businesses, brands andimages of AMBER AUDIT CO., LTD through each day, eachspecific job, with strict labor Sufficiency, creativity, efforts of

1.2 Operating characteristics of the company

 Operational goals

The objective of AMBER is “to be independent, honest andtransparent to provide the best specialized services, provide thehighest legal rights and benefits to customers in financial”economicmanagement and operation production activities Moreover, withAMBER's practical, professional, customer-friendly, professionaland knowledgeable experience in Vietnam, AMBER “quickly andclearly captures the requirements in management and production Indoing business, the difficulties that customers will encounter andassist customers to solve those problems well that few specializedservice organizations can”perform

 Amber's service motto

AMBER “always ensures the quality of service in all areas with theservice motto: Independence, efficiency and confidentiality incompliance with the provisions of the State of Vietnam, VietnamStandards on Auditing, Vietnam Standards on AuditingInternationally accepted in Vietnam based on the first criteria iscustomer satisfaction.”

 AMBER’s customers

“With the diversification of services provided, AMBER is constantlyexpanding its market share and seeking customers In the past 3years, AMBER has provided services to many customers operating

in the field, including:

 Vietnamese enterprises of all economic sectors operating inthe fields of manufacturing - construction - hotels - banks -transportation - petroleum

 Foreign-invested enterprises, business cooperation contractsoperating under the Law on Foreign Investment in Vietnam

 International and domestic agencies and organizations,domestic and international projects, representative offices andindividuals wishing to provide services

Providing a wide range of services to all subjects operating in allareas has proven AMBER's operational capability At the sametime, he affirmed his position as one of the auditing companies inVietnam market.”

Auditing services provided by the company to customers include butare not limited to the following:

• “Auditing financial statements according to law;

• Auditing of financial statements for special purposes;

• Operational Auditing;

• Compliance audit;

• Reviewing information on the financial statements;

• Check financial information on the basis of pre-agreed procedures.”

1.2.2 Audit of settlement of investment capital

Auditing Service Settlement of works and investment projects is one

of the outstanding services of AMBER

The services that the company has been, is and is ready to provide tocustomers in all fields nationwide including:

• Audit of reports on final settlement of investment capital ofcompleted projects and work items;

• Audit determining the settlement value of works;

• Auditing annual financial statements of project management boardsand investors

The company has participated in the audit of the investment capitalsettlement of many large projects with the investment capital ofthousands of billion dongs such as: Office of Petroleum Institute, CaMau Fertilizer Gas Complex, Ha Tien Cement Line 2.2, Wire to pass

on cigarettes of Thang Long Tobacco Company

1.2.3 Consulting services

With experienced and knowledgeable consultants with practicalwork experience, AMBER “has provided clients with the bestsolutions to improve internal control systems, improve Highbusiness efficiency, comply with the provisions of law.The financialand tax advisory services the company provides”to its customersinclude:

 Business financial advisory service

• Business financial advisory services;

• Management solution consulting services;

• Project support services

 Tax advisory service

• “Planning, designing, storing and managing data;”

• Effective business structure for tax purposes;

• Review compliance with corporate tax laws;

• Help with calculating and organizing tax refund procedures;

• Compliance and personal income tax planning;

• Calculating taxes and making tax returns

With a team of experts knowledgeable about Vietnameseaccounting, international accounting practices, many years ofpractical work experience in businesses, AMBER provides avariety of accounting services to customers, including preparebooks, set budgets and prepare periodic financial statements.The highlight of the company's accounting service is its ability todesign an accounting system that not only fits the business type ofthe business but also meets the specific standards of internationalorganizations but still complies with comply with the Vietnameseaccounting regime at the request of the Ministry of Finance Thecompany's commitment to providing high quality services isreflected in its efforts to support the Ministry of Finance indrafting and promulgating Vietnamese Accounting and AuditingStandards The company's personnel represent competent andexperienced professionals

Specifically, the company's accounting services include:

• “Building an accounting system

• Help with accounting

“Many customers believe that the company's training service is

an indispensable service A group of highly qualified corporateprofessionals in accounting, auditing and management willprovide training programs that meet the requirements of ourclients

Training programs range from training on internationalaccounting and auditing standards, Vietnamese accounting andauditing standards to training on the latest policies and regulationsapplicable to specific industries or for business activities acrossthe country in general A good internal control system can helpcustomers assure themselves To assist clients in conductinginternal audit programs, the company also organizes trainingprograms for internal audit skills These programs are based onwidely accepted accounting and auditing standards in Vietnam.”

These include: Organizing training and seminars; HumanResource Management

company has built a suitable process, while creating specialization while notdiversifying the diversity of its services In 2018, 2019 these types of servicesprovided with significant revenue.”

Table 1.1: Consolidated revenue in 2018, 2019

Auditing financial

Audit of settlement ofinvestment capital

Auditing financial statements

Audit of settlement of investment capital

Others

Figure 1.2: Revenue structure of the company in 2019

Auditing financial statements

Audit of settlement of investment capital

Others

- “Auditing financial statements: This can be considered as a keybusiness area for the company This type of service has broughtthe company”a lot of “customers of many types of businessesand businesses The business activities of this activity alwaysaccount for more than 50% of annual revenue of the wholecompany For this type of service, the company has a specificaudit program built and applied by the company based onaccounting and auditing standards that are applied worldwideand in Vietnam.”

1.3 Management of AMBER AUDIT CO., LTD

Stemming from the increasingly important needs of customers,AMBER Auditing and Financial Consulting Co., Ltd is constantlystrengthening the working scale and increasing the staff to meet theneeds of customers

Chart 1.1: Organizational structure of management apparatus of AMBER

Auditing Company Limited

Inside:

 Coucil members: include 7 members, are the people involved in

establishing the company

 Board of manager: 1 director và 3 vice directors

Be the “ legal representative of the company before law, take responsibility before law, the Members' Council for all activities of the

activities of the company This is the legal representative department about the domestic and foreign affairs of the company before the law, the state management agencies on the entire operation of the company ”

 General “ administrative office: be responsible for dealing with customers; set up letter of fee as well as contract drafting and general administration ”

 The “ Capital Construction Audit Department is responsible for assigning and carrying out capital construction audits, determining the value of enterprises as well as investment consulting ”

 Financial “ statements auditing department (including 3 divisions) perform assignments and perform financial statements audits Because auditing financial statements is the main activity of the company, the number of rooms is enhanced”to meet the audit requirements of customers ”

CHAPTER 2: ORGANIZING AUDIT PRACTICE AT AMBER

AUDITING AND FINANCIAL CONSULTING COMPANY LIMITED 2.1 Organizing an Audit Team

 “The audit team or more specifically, the auditors performing theaudit are the key factors that determine the quality of the audit.AMBER Auditors have a high quality staff, graduated fromuniversities and”colleges in the country, many auditors have CPAcertificate

 “Typically, the audit team at AMBER consists of 4 to 5 people ormore depending on the industry and size of the customer.Specifically include:”

- Audit Director “(Partner): A person who has a position in theboard of directors, is responsible for signing contracts withcustomers and is responsible for organizing the plan for theinspection team and who is in charge highest in overall review

of audit team and”pre-release audit report

- Audit Manager: Is the person responsible for running the finalaudit, preparing and signing audit reports The audit manager

“assigns the team leader and supervisor throughout the processfrom planning, performing the audit, and ending the audit toensure the quality of the audit Usually the audit manager is theperson in charge of the division”that conducts the audit

- Team leader: The audit team leader plays a very important

“role in an audit, directing the audit, and is also the mostdetailed reviewer who also makes comments and assessments

on audited parts At the same time, the team leader is the

customer Team leader usually has at least 5 years ofexperience and”most of them have obtained a certificate ofVietnamese Auditors

- Auditors and audit assistants: “Those who conduct audits of theoperations assigned by the audit team leader Auditors andaudit assistants collect audit evidence for their audit operationsreflected on the working paper Auditors usually have 3 to 5years of work experience, audit assistants can be interns oremployees with 1 to 2 years of work experience However,each group can only have a maximum of 1 student practice toensure the inspection and reporting”

 “Members of the audit team, as assigned by the team leaderwho is responsible for the results of the audit with theCompany Director and the Law, will undertake the specifictasks stated in the assignment The audit team leader isresponsible for making the audit plan and submits to theHead of the audit department plans and deals with thecustomer, clearly stating the basis for the planning of theaudit program,”the time and personnel plan

“Before coming to work at the client, the head of the audit team isresponsible for informing the customer of the date and time of theintended audit, the documents that the customer should provide for theaudit During the course of work, all members of the audit team followthe arrangement and assignment of the team leader The auditors andassistant auditors in the delegation will be tasked to inspect andevaluate the client's internal control system, identify the risk area,perform system inspection and evaluation steps, check details oftransactions, balance on financial statements and transactions, balancenot yet presented and fully disclosed on related financial statements

The auditor also assesses the accounting principles used and”significantestimates made by management, as well as an overall assessment of theaccuracy of the information presented in the financial statements

2.2 Audit Process

The Company conducted an audit in accordance with VietnameseStandards “on Auditing to provide comments on honesty and fairness,considering the material aspects of the Company's Financial Statementsprepared in accordance with Standards Vietnam Accounting Standards,Vietnamese Accounting System and other relevant accounting regulations

in Vietnam.”

At AMBER Auditing & Financial Consulting Co., Ltd., the audit of theCompany is conducted based on in-depth “understanding of the businesssituation, internal control systems and risks related to business activities.business of the Company The Company's approach is from risk, beforemaking an audit plan, the Company makes general predictions andanalysis to make the risk assessment take place most accurately With alarge number of prediction tools available, this approach will help identifypotential issues and enhance understanding throughout the audit process.The Company's approach also conforms to the increasingly stringentrequirements for the accuracy and transparency of financial statements.”