Luận văn project’s name auditing accounts receivable in the process of auditing financial statement at thang long t d k auditing and valuation limited company

Section 4, which constitutes the major part of this paper, presents the Findings and Diseussions that results from the semi- structured interviews to clarity how ‘thang Long - ‘1.D.K Com

AUDITING FINANCIAL STATEMENT AT THANG LONG T.D.K

AUDITING AND VALUATION LIMITED COMPANY SUPFRVISOR: MA NGO TRI TRUNG

ABSTRACT

In this paper, we study the process of auditing accounts receivable from customers

at Thang Long - 1.D.K Company ‘Ihe objective of this research is to focus on Thang Long - T.D.K Company and a specific case of BeeaHIN Vietnam Co., Tid A

significant bulk of the paper is dedicated to the process of anditing accounts

receivable from customers in general, and the process of auditing accounts

receivable from customers for a specific customer in particular performed by Thang

Long ~ T.D.K Auditing and Valuation Co., Ltd in addition, interviewees and

researcher recognized the advantages of auditing customer reccivables from

customers at Thang Long —-TD.K Auditing and Valuation Co., Ltd as follows:

young, dynantic, enthusiastic and highly qualified statts, audit records are stored scientifically, as well as quality control is always focused In addition to the above

advantages, the author found some remaining limitations in the audit process at

‘Thang Long — 1.19.K Auditing and Valuation Co., Lid on human resources is limited before the workload in the market Anditing programs have nol been

designed and built specifically for each specific type of business, a3 well as the implementation of tests of detailed procedures sul largely depends on the auditor's judgment

LETTER OF DECLARATION

Lhereby declare that the graduation proiect: “ Auditing accounts receivable in the

process of auditing financial statement at Thang Tong - T.D.K Auditing and Valuation Limited Company ™ is the result of uy owa research and has never been

published in any work of other During the implemetation process of this project, 1 have serivusly (uken reseurch elbies; all findings of this projects are results of my

own research and surveys; all references in this project are cleatly cited according to regulations

I bear full responsibity for the fidelity of the number and data and other contents

Table of Notations and Abbreviations

Research objective and scope Error! Bookmark not defined,

Error! Bookmark not defined

1 Overview of Financial stateraent audit

2 Overview of the ARC

3 Allowance for doubtful accounts s

4 Objectives of cuditing debt receivable from customers

5, Fraud and errors that may ooeur for bae debts

6 Process of auditing ARC ín audidng financial statements

IL METHODOLOGY FRAMEWORK Error! Baotumark nat defined.0

Error! Bookmark not defined.0

Error! Baokmark not dened.2

Error! Bookmark not defined.2 Error! Bookmark not defined.3

1 Introduction of ‘Thang Long -'1.D.& Company .2Birror! Bookmark not defined

2, Detailed audit program applied to auditing ARC at Thang Long - T.D.K Company 2Brrori B

3 Actual application of auditing process of ARC for BeeaKIN Vietnam Co., Ltd at

Thang Long - T.Ð.K Company

4, Comments on the process of auditing ARC at Thang Long - T.D.K Company

4.1 Advantages of auditing ARC at ‘Thang Long - T K Company

4.2 Some limitutivas in auditing ARC at Thaeg Long - T.D.K Company

V, CONCLUSION

REFERENCES

ACKNOWLEDGEMENT

EL would like to express the special gratitude to Tnternalional School of Vietaarm

‘National University for supporting re all the time Especially, I want to show my

thank fullness to my teacher as well as his guide, Mr Xgo Tri Trung MA., who gave

me the golden opportunity and inspiration to do this wonderful project Thanks to his patien( guidance, enthusiastic encouragement, useful critiques, excellent advice and considerable assistance, | was given strengthoncd motivation in keeping my progress on schedule and broaden the horizon about anditing knowledge

Additionally, I would like to send my sincere thanks to Thang Long - T.D.K

Company that facilitated me to experience and lear Tam so grateful for having a

chance to meet lots of professional people who also give advices, guidance and comments for my Lhesis

ACKNOWLEDGEMENT

EL would like to express the special gratitude to Tnternalional School of Vietaarm

‘National University for supporting re all the time Especially, I want to show my

thank fullness to my teacher as well as his guide, Mr Xgo Tri Trung MA., who gave

me the golden opportunity and inspiration to do this wonderful project Thanks to his patien( guidance, enthusiastic encouragement, useful critiques, excellent advice and considerable assistance, | was given strengthoncd motivation in keeping my progress on schedule and broaden the horizon about anditing knowledge

Additionally, I would like to send my sincere thanks to Thang Long - T.D.K

Company that facilitated me to experience and lear Tam so grateful for having a

chance to meet lots of professional people who also give advices, guidance and comments for my Lhesis

Research objective and scope Error! Bookmark not defined,

Error! Bookmark not defined

1 Overview of Financial stateraent audit

2 Overview of the ARC

3 Allowance for doubtful accounts s

4 Objectives of cuditing debt receivable from customers

5, Fraud and errors that may ooeur for bae debts

6 Process of auditing ARC ín audidng financial statements

IL METHODOLOGY FRAMEWORK Error! Baotumark nat defined.0

Error! Bookmark not defined.0

Error! Baokmark not dened.2

Error! Bookmark not defined.2 Error! Bookmark not defined.3

1 Introduction of ‘Thang Long -'1.D.& Company .2Birror! Bookmark not defined

2, Detailed audit program applied to auditing ARC at Thang Long - T.D.K Company 2Brrori B

3 Actual application of auditing process of ARC for BeeaKIN Vietnam Co., Ltd at

Thang Long - T.Ð.K Company

4, Comments on the process of auditing ARC at Thang Long - T.D.K Company

4.1 Advantages of auditing ARC at ‘Thang Long - T K Company

4.2 Some limitutivas in auditing ARC at Thaeg Long - T.D.K Company

V, CONCLUSION

REFERENCES

ACKNOWLEDGEMENT

EL would like to express the special gratitude to Tnternalional School of Vietaarm

‘National University for supporting re all the time Especially, I want to show my

thank fullness to my teacher as well as his guide, Mr Xgo Tri Trung MA., who gave

me the golden opportunity and inspiration to do this wonderful project Thanks to his patien( guidance, enthusiastic encouragement, useful critiques, excellent advice and considerable assistance, | was given strengthoncd motivation in keeping my progress on schedule and broaden the horizon about anditing knowledge

Additionally, I would like to send my sincere thanks to Thang Long - T.D.K

Company that facilitated me to experience and lear Tam so grateful for having a

chance to meet lots of professional people who also give advices, guidance and comments for my Lhesis

PROCESS

In the process of implementing the thesis, the problem of selecting a practical, reasonable and feasible topic in student’s capacity was a first challenging task 1

encountered as il plays a key role in determining the success of a research, The next

difficulty is the search for materials as well as self-research skills Online resources

are becoming more and more diverse and plentiful, but difficult to verify ia terms of

precision, which is an essential for research In addition, finding legitimate, trustworthy, and scholarly sources, related to research topics, sometimes quite

cxpensive for students In particular, finding the appropriate with in-depth

knowledge interviewees for the research was one of the challenges to reach the

feasibility in studied results Last but not least, assigning the works to ensure the completion of work on schedule was a problem that Í encountered in the process of implementing my thesis

6 RESEARCH STRUCTURE:

This paper attempts ta delve into how Thang Long - T.D.K Company performs the audit of ARC in the auditing of fin:

ial slalement The remaining parl of the paper

is broadiy divided into four parts (sections 2 to 5} Section 2 provides theoretical

basis for audiling ARC in the process of auditing financial statements Section 3

describes the methodological framework applied for the purpose of answering those

research questions The semi-structured interview method was used in this research

through two forms, which are the direct communications and indircet inlerviews via e-mail and survey This is also where the interview questions were designed and the

method of its analysis are included Section 4, which constitutes the major part of

this paper, presents the Findings and Diseussions that results from the semi-

structured interviews to clarity how ‘thang Long - ‘1.D.K Company performs the

audit of ARC at a specific case of BeeaHN Vietnam Co., Ltd, outstanding

advantages as well as limitations in the process of auditing ARC at Thang Long -

T.DEK Company Finally, section 5 concludes the research and recommendations to

improve ARC audil process at Thang Long - T.D-K Company.

Table of Notations and Abbreviations

LIST OF TABLES

Tuble 2.1; Audit target table uf ARC

Table 2.2: The relatienship between audit risk and the mumber af audit evidence to

be collected

Table 2.3; Detailed inspection procedures for ARC in auditing financial statemenis

Table 41: Detailed audit program applied ta audiiing ARC at TOK

Table 4.2: The accounting policies applied consistently with the previous year

table 4.3: Customer accourts receivable turnover

Table 4.4: Analysis of valatility of accotmis receivable from customers

Table 4.5: Summary iabie af ARC

Table 4.6; Sumaary table of reciprocal accounts

Toble 4.7: The debt age analpsis

Table 4,8: Summary table of confirmation letter

Table 4.9: The receipt of maney received by the closing dare

Table 4.19: Money transfer documents

Table 4.11: Summary table of had debts

Table 4.12: The conversion of foreign currency exchange rates at the end of the

“fiscal year.

ACKNOWLEDGEMENT

EL would like to express the special gratitude to Tnternalional School of Vietaarm

‘National University for supporting re all the time Especially, I want to show my

thank fullness to my teacher as well as his guide, Mr Xgo Tri Trung MA., who gave

me the golden opportunity and inspiration to do this wonderful project Thanks to his patien( guidance, enthusiastic encouragement, useful critiques, excellent advice and considerable assistance, | was given strengthoncd motivation in keeping my progress on schedule and broaden the horizon about anditing knowledge

Additionally, I would like to send my sincere thanks to Thang Long - T.D.K

Company that facilitated me to experience and lear Tam so grateful for having a

chance to meet lots of professional people who also give advices, guidance and comments for my Lhesis

Table of Notations and Abbreviations

To systematize the theoretical basis for the auditing process of ARC in the

auditing process of financial statement

Find our about Thang Long - T.D.K Company, study the auditing process of ARC at TK and apply this process to a real customer,

Draw practical experience for yourself about the process of auditing ARC in

the auditing process of financial statemems audited by Thang Long - T.DK

Company

3 RESEARCH OBJECTIVE AND SCOPE

The objective of this thesis is to focus on Thang Long - P.L.K Company and

a specific case of BeeaHN Vietnam Co., Ltd, researcher requested to mecl the auditor trom Thang Long - T.D.K Company and enquire ahout how Thang Long -

TDK Company performa auditing ARC for BeeaHN Vietnam Co Ltd, specifically:

Scope of content: Due to limited time, the topic does not study the entire

accounls receivable audit process, only focuses on auditing ARC in the financial

statement for a specific case of manufaciuring company al Thang Long - T-D.K

Company

4, RESEARCH QUESTION

In order to have more understanding about the process of auditing ARC al Thang

Long - T.D.K Company, the following research questions were used as a ground basis for designing the interview questions and as an underlying research objective

throughout the research

1.Has the company designed a general ARC audit process for all types of businesses

or has it built specific ARC audit process for each typical business type? How is the

process of auditing ARC perforned ar Thang Long - T.D.K Company?

2 What difficulties has the company been having in the process of auditing ARC?

The specific interview questions outline and how they were analyzed will be included in the Methadolugy section

5 FACILITIES AND DIFFICULTIES OF THE RESEARCHING

we

Table of Notations and Abbreviations

LIST OF TABLES

Tuble 2.1; Audit target table uf ARC

Table 2.2: The relatienship between audit risk and the mumber af audit evidence to

be collected

Table 2.3; Detailed inspection procedures for ARC in auditing financial statemenis

Table 41: Detailed audit program applied ta audiiing ARC at TOK

Table 4.2: The accounting policies applied consistently with the previous year

table 4.3: Customer accourts receivable turnover

Table 4.4: Analysis of valatility of accotmis receivable from customers

Table 4.5: Summary iabie af ARC

Table 4.6; Sumaary table of reciprocal accounts

Toble 4.7: The debt age analpsis

Table 4,8: Summary table of confirmation letter

Table 4.9: The receipt of maney received by the closing dare

Table 4.19: Money transfer documents

Table 4.11: Summary table of had debts

Table 4.12: The conversion of foreign currency exchange rates at the end of the

“fiscal year.

Table of Notations and Abbreviations

PROCESS

In the process of implementing the thesis, the problem of selecting a practical, reasonable and feasible topic in student’s capacity was a first challenging task 1

encountered as il plays a key role in determining the success of a research, The next

difficulty is the search for materials as well as self-research skills Online resources

are becoming more and more diverse and plentiful, but difficult to verify ia terms of

precision, which is an essential for research In addition, finding legitimate, trustworthy, and scholarly sources, related to research topics, sometimes quite

cxpensive for students In particular, finding the appropriate with in-depth

knowledge interviewees for the research was one of the challenges to reach the

feasibility in studied results Last but not least, assigning the works to ensure the completion of work on schedule was a problem that Í encountered in the process of implementing my thesis

6 RESEARCH STRUCTURE:

This paper attempts ta delve into how Thang Long - T.D.K Company performs the audit of ARC in the auditing of fin:

ial slalement The remaining parl of the paper

is broadiy divided into four parts (sections 2 to 5} Section 2 provides theoretical

basis for audiling ARC in the process of auditing financial statements Section 3

describes the methodological framework applied for the purpose of answering those

research questions The semi-structured interview method was used in this research

through two forms, which are the direct communications and indircet inlerviews via e-mail and survey This is also where the interview questions were designed and the

method of its analysis are included Section 4, which constitutes the major part of

this paper, presents the Findings and Diseussions that results from the semi-

structured interviews to clarity how ‘thang Long - ‘1.D.K Company performs the

audit of ARC at a specific case of BeeaHN Vietnam Co., Ltd, outstanding

advantages as well as limitations in the process of auditing ARC at Thang Long -

T.DEK Company Finally, section 5 concludes the research and recommendations to

improve ARC audil process at Thang Long - T.D-K Company.

To systematize the theoretical basis for the auditing process of ARC in the

auditing process of financial statement

Find our about Thang Long - T.D.K Company, study the auditing process of ARC at TK and apply this process to a real customer,

Draw practical experience for yourself about the process of auditing ARC in

the auditing process of financial statemems audited by Thang Long - T.DK

Company

3 RESEARCH OBJECTIVE AND SCOPE

The objective of this thesis is to focus on Thang Long - P.L.K Company and

a specific case of BeeaHN Vietnam Co., Ltd, researcher requested to mecl the auditor trom Thang Long - T.D.K Company and enquire ahout how Thang Long -

TDK Company performa auditing ARC for BeeaHN Vietnam Co Ltd, specifically:

Scope of content: Due to limited time, the topic does not study the entire

accounls receivable audit process, only focuses on auditing ARC in the financial

statement for a specific case of manufaciuring company al Thang Long - T-D.K

Company

4, RESEARCH QUESTION

In order to have more understanding about the process of auditing ARC al Thang

Long - T.D.K Company, the following research questions were used as a ground basis for designing the interview questions and as an underlying research objective

throughout the research

1.Has the company designed a general ARC audit process for all types of businesses

or has it built specific ARC audit process for each typical business type? How is the

process of auditing ARC perforned ar Thang Long - T.D.K Company?

2 What difficulties has the company been having in the process of auditing ARC?

The specific interview questions outline and how they were analyzed will be included in the Methadolugy section

5 FACILITIES AND DIFFICULTIES OF THE RESEARCHING

we

To systematize the theoretical basis for the auditing process of ARC in the

auditing process of financial statement

Find our about Thang Long - T.D.K Company, study the auditing process of ARC at TK and apply this process to a real customer,

Draw practical experience for yourself about the process of auditing ARC in

the auditing process of financial statemems audited by Thang Long - T.DK

Company

3 RESEARCH OBJECTIVE AND SCOPE

The objective of this thesis is to focus on Thang Long - P.L.K Company and

a specific case of BeeaHN Vietnam Co., Ltd, researcher requested to mecl the auditor trom Thang Long - T.D.K Company and enquire ahout how Thang Long -

TDK Company performa auditing ARC for BeeaHN Vietnam Co Ltd, specifically:

Scope of content: Due to limited time, the topic does not study the entire

accounls receivable audit process, only focuses on auditing ARC in the financial

statement for a specific case of manufaciuring company al Thang Long - T-D.K

Company

4, RESEARCH QUESTION

In order to have more understanding about the process of auditing ARC al Thang

Long - T.D.K Company, the following research questions were used as a ground basis for designing the interview questions and as an underlying research objective

throughout the research

1.Has the company designed a general ARC audit process for all types of businesses

or has it built specific ARC audit process for each typical business type? How is the

process of auditing ARC perforned ar Thang Long - T.D.K Company?

2 What difficulties has the company been having in the process of auditing ARC?

The specific interview questions outline and how they were analyzed will be included in the Methadolugy section

5 FACILITIES AND DIFFICULTIES OF THE RESEARCHING

we

To systematize the theoretical basis for the auditing process of ARC in the

auditing process of financial statement

Find our about Thang Long - T.D.K Company, study the auditing process of ARC at TK and apply this process to a real customer,

Draw practical experience for yourself about the process of auditing ARC in

the auditing process of financial statemems audited by Thang Long - T.DK

Company

3 RESEARCH OBJECTIVE AND SCOPE

The objective of this thesis is to focus on Thang Long - P.L.K Company and

a specific case of BeeaHN Vietnam Co., Ltd, researcher requested to mecl the auditor trom Thang Long - T.D.K Company and enquire ahout how Thang Long -

TDK Company performa auditing ARC for BeeaHN Vietnam Co Ltd, specifically:

Scope of content: Due to limited time, the topic does not study the entire

accounls receivable audit process, only focuses on auditing ARC in the financial

statement for a specific case of manufaciuring company al Thang Long - T-D.K

Company

4, RESEARCH QUESTION

In order to have more understanding about the process of auditing ARC al Thang

Long - T.D.K Company, the following research questions were used as a ground basis for designing the interview questions and as an underlying research objective

throughout the research

1.Has the company designed a general ARC audit process for all types of businesses

or has it built specific ARC audit process for each typical business type? How is the

process of auditing ARC perforned ar Thang Long - T.D.K Company?

2 What difficulties has the company been having in the process of auditing ARC?

The specific interview questions outline and how they were analyzed will be included in the Methadolugy section

5 FACILITIES AND DIFFICULTIES OF THE RESEARCHING

we

To systematize the theoretical basis for the auditing process of ARC in the

auditing process of financial statement

Find our about Thang Long - T.D.K Company, study the auditing process of ARC at TK and apply this process to a real customer,

Draw practical experience for yourself about the process of auditing ARC in

the auditing process of financial statemems audited by Thang Long - T.DK

Company

3 RESEARCH OBJECTIVE AND SCOPE

The objective of this thesis is to focus on Thang Long - P.L.K Company and

a specific case of BeeaHN Vietnam Co., Ltd, researcher requested to mecl the auditor trom Thang Long - T.D.K Company and enquire ahout how Thang Long -

TDK Company performa auditing ARC for BeeaHN Vietnam Co Ltd, specifically:

Scope of content: Due to limited time, the topic does not study the entire

accounls receivable audit process, only focuses on auditing ARC in the financial

statement for a specific case of manufaciuring company al Thang Long - T-D.K

Company

4, RESEARCH QUESTION

In order to have more understanding about the process of auditing ARC al Thang

Long - T.D.K Company, the following research questions were used as a ground basis for designing the interview questions and as an underlying research objective

throughout the research

1.Has the company designed a general ARC audit process for all types of businesses

or has it built specific ARC audit process for each typical business type? How is the

process of auditing ARC perforned ar Thang Long - T.D.K Company?

2 What difficulties has the company been having in the process of auditing ARC?

The specific interview questions outline and how they were analyzed will be included in the Methadolugy section

5 FACILITIES AND DIFFICULTIES OF THE RESEARCHING

we

PROCESS

In the process of implementing the thesis, the problem of selecting a practical, reasonable and feasible topic in student’s capacity was a first challenging task 1

encountered as il plays a key role in determining the success of a research, The next

difficulty is the search for materials as well as self-research skills Online resources

are becoming more and more diverse and plentiful, but difficult to verify ia terms of

precision, which is an essential for research In addition, finding legitimate, trustworthy, and scholarly sources, related to research topics, sometimes quite

cxpensive for students In particular, finding the appropriate with in-depth

knowledge interviewees for the research was one of the challenges to reach the

feasibility in studied results Last but not least, assigning the works to ensure the completion of work on schedule was a problem that Í encountered in the process of implementing my thesis

6 RESEARCH STRUCTURE:

This paper attempts ta delve into how Thang Long - T.D.K Company performs the audit of ARC in the auditing of fin:

ial slalement The remaining parl of the paper

is broadiy divided into four parts (sections 2 to 5} Section 2 provides theoretical

basis for audiling ARC in the process of auditing financial statements Section 3

describes the methodological framework applied for the purpose of answering those

research questions The semi-structured interview method was used in this research

through two forms, which are the direct communications and indircet inlerviews via e-mail and survey This is also where the interview questions were designed and the

method of its analysis are included Section 4, which constitutes the major part of

this paper, presents the Findings and Diseussions that results from the semi-

structured interviews to clarity how ‘thang Long - ‘1.D.K Company performs the

audit of ARC at a specific case of BeeaHN Vietnam Co., Ltd, outstanding

advantages as well as limitations in the process of auditing ARC at Thang Long -

T.DEK Company Finally, section 5 concludes the research and recommendations to

improve ARC audil process at Thang Long - T.D-K Company.

PROCESS

In the process of implementing the thesis, the problem of selecting a practical, reasonable and feasible topic in student’s capacity was a first challenging task 1

encountered as il plays a key role in determining the success of a research, The next

difficulty is the search for materials as well as self-research skills Online resources

are becoming more and more diverse and plentiful, but difficult to verify ia terms of

precision, which is an essential for research In addition, finding legitimate, trustworthy, and scholarly sources, related to research topics, sometimes quite

cxpensive for students In particular, finding the appropriate with in-depth

knowledge interviewees for the research was one of the challenges to reach the

feasibility in studied results Last but not least, assigning the works to ensure the completion of work on schedule was a problem that Í encountered in the process of implementing my thesis

6 RESEARCH STRUCTURE:

This paper attempts ta delve into how Thang Long - T.D.K Company performs the audit of ARC in the auditing of fin:

ial slalement The remaining parl of the paper

is broadiy divided into four parts (sections 2 to 5} Section 2 provides theoretical

basis for audiling ARC in the process of auditing financial statements Section 3

describes the methodological framework applied for the purpose of answering those

research questions The semi-structured interview method was used in this research

through two forms, which are the direct communications and indircet inlerviews via e-mail and survey This is also where the interview questions were designed and the

method of its analysis are included Section 4, which constitutes the major part of

this paper, presents the Findings and Diseussions that results from the semi-

structured interviews to clarity how ‘thang Long - ‘1.D.K Company performs the

audit of ARC at a specific case of BeeaHN Vietnam Co., Ltd, outstanding

advantages as well as limitations in the process of auditing ARC at Thang Long -

T.DEK Company Finally, section 5 concludes the research and recommendations to

improve ARC audil process at Thang Long - T.D-K Company.

PART I: INFRODUCTIOX

1 RESEARCH NECESSITY

In the context of a transition to a market economy, implementing the policy

of diversifying forms of ownership, economic sectors are expanded and increasingly

play an important role in thẻ econumie development process of the country, the financial information of enterprises is used not only for reporling purposes lo state management agencies for inspection and approval bat also for investors and

business managers to exploit and use for economic decisions

Meeting the above requirements, audit activities come into being and become

an indispensable and important part of the life of economic activities Auditing increases the credibility of financial information, contributing to healthy economic

relations Based on the audit results, audited financial report users have accurate and

objective information, which can properly assess the financial situation as well as

the performance of the business lu addition to the main objective of giving opinions on financial statements, auditors, through (he audil process, it is possible to

make recommendations to help coterpriscs complete the control system, improve

efficiency in financial management in particular a3 well as business operations in general

In particular, auditing financial statements is a typical type of audit, in the information on the financial statements, the accounts receivable is of importance as

it affects the key indicators on the financial statemems Accounts receivable is

frequently the largest asset that a company has, so auditors tend to spend a considerable amount of time gaining assurance that the amount of the stated asset is

reasonable Therefore, auditing accounts receivable is an important part of the financial statement audit process Recognizing the importance of auditing accounts

receivable in the auditing process of financial statements, I decided Lo study the

“Audiling

topi

ounls receivable in the process of auditing financial statement at

Thang Long - T.D.K Company”

2, RESEARCH PURPOSE

LIST OF TABLES

Tuble 2.1; Audit target table uf ARC

Table 2.2: The relatienship between audit risk and the mumber af audit evidence to

be collected

Table 2.3; Detailed inspection procedures for ARC in auditing financial statemenis

Table 41: Detailed audit program applied ta audiiing ARC at TOK

Table 4.2: The accounting policies applied consistently with the previous year

table 4.3: Customer accourts receivable turnover

Table 4.4: Analysis of valatility of accotmis receivable from customers

Table 4.5: Summary iabie af ARC

Table 4.6; Sumaary table of reciprocal accounts

Toble 4.7: The debt age analpsis

Table 4,8: Summary table of confirmation letter

Table 4.9: The receipt of maney received by the closing dare

Table 4.19: Money transfer documents

Table 4.11: Summary table of had debts

Table 4.12: The conversion of foreign currency exchange rates at the end of the

“fiscal year.

PROCESS

In the process of implementing the thesis, the problem of selecting a practical, reasonable and feasible topic in student’s capacity was a first challenging task 1

encountered as il plays a key role in determining the success of a research, The next

difficulty is the search for materials as well as self-research skills Online resources

are becoming more and more diverse and plentiful, but difficult to verify ia terms of

precision, which is an essential for research In addition, finding legitimate, trustworthy, and scholarly sources, related to research topics, sometimes quite

cxpensive for students In particular, finding the appropriate with in-depth

knowledge interviewees for the research was one of the challenges to reach the

feasibility in studied results Last but not least, assigning the works to ensure the completion of work on schedule was a problem that Í encountered in the process of implementing my thesis

6 RESEARCH STRUCTURE:

This paper attempts ta delve into how Thang Long - T.D.K Company performs the audit of ARC in the auditing of fin:

ial slalement The remaining parl of the paper

is broadiy divided into four parts (sections 2 to 5} Section 2 provides theoretical

basis for audiling ARC in the process of auditing financial statements Section 3

describes the methodological framework applied for the purpose of answering those

research questions The semi-structured interview method was used in this research

through two forms, which are the direct communications and indircet inlerviews via e-mail and survey This is also where the interview questions were designed and the

method of its analysis are included Section 4, which constitutes the major part of

this paper, presents the Findings and Diseussions that results from the semi-

structured interviews to clarity how ‘thang Long - ‘1.D.K Company performs the

audit of ARC at a specific case of BeeaHN Vietnam Co., Ltd, outstanding

advantages as well as limitations in the process of auditing ARC at Thang Long -

T.DEK Company Finally, section 5 concludes the research and recommendations to

improve ARC audil process at Thang Long - T.D-K Company.

ACKNOWLEDGEMENT

EL would like to express the special gratitude to Tnternalional School of Vietaarm

‘National University for supporting re all the time Especially, I want to show my

thank fullness to my teacher as well as his guide, Mr Xgo Tri Trung MA., who gave

me the golden opportunity and inspiration to do this wonderful project Thanks to his patien( guidance, enthusiastic encouragement, useful critiques, excellent advice and considerable assistance, | was given strengthoncd motivation in keeping my progress on schedule and broaden the horizon about anditing knowledge

Additionally, I would like to send my sincere thanks to Thang Long - T.D.K

Company that facilitated me to experience and lear Tam so grateful for having a

chance to meet lots of professional people who also give advices, guidance and comments for my Lhesis

PART I: INFRODUCTIOX

1 RESEARCH NECESSITY

In the context of a transition to a market economy, implementing the policy

of diversifying forms of ownership, economic sectors are expanded and increasingly

play an important role in thẻ econumie development process of the country, the financial information of enterprises is used not only for reporling purposes lo state management agencies for inspection and approval bat also for investors and

business managers to exploit and use for economic decisions

Meeting the above requirements, audit activities come into being and become

an indispensable and important part of the life of economic activities Auditing increases the credibility of financial information, contributing to healthy economic

relations Based on the audit results, audited financial report users have accurate and

objective information, which can properly assess the financial situation as well as

the performance of the business lu addition to the main objective of giving opinions on financial statements, auditors, through (he audil process, it is possible to

make recommendations to help coterpriscs complete the control system, improve

efficiency in financial management in particular a3 well as business operations in general

In particular, auditing financial statements is a typical type of audit, in the information on the financial statements, the accounts receivable is of importance as

it affects the key indicators on the financial statemems Accounts receivable is

frequently the largest asset that a company has, so auditors tend to spend a considerable amount of time gaining assurance that the amount of the stated asset is

reasonable Therefore, auditing accounts receivable is an important part of the financial statement audit process Recognizing the importance of auditing accounts

receivable in the auditing process of financial statements, I decided Lo study the

“Audiling

topi

ounls receivable in the process of auditing financial statement at

Thang Long - T.D.K Company”

2, RESEARCH PURPOSE

LIST OF TABLES

Tuble 2.1; Audit target table uf ARC

Table 2.2: The relatienship between audit risk and the mumber af audit evidence to

be collected

Table 2.3; Detailed inspection procedures for ARC in auditing financial statemenis

Table 41: Detailed audit program applied ta audiiing ARC at TOK

Table 4.2: The accounting policies applied consistently with the previous year

table 4.3: Customer accourts receivable turnover

Table 4.4: Analysis of valatility of accotmis receivable from customers

Table 4.5: Summary iabie af ARC

Table 4.6; Sumaary table of reciprocal accounts

Toble 4.7: The debt age analpsis

Table 4,8: Summary table of confirmation letter

Table 4.9: The receipt of maney received by the closing dare

Table 4.19: Money transfer documents

Table 4.11: Summary table of had debts

Table 4.12: The conversion of foreign currency exchange rates at the end of the

“fiscal year.

Research objective and scope Error! Bookmark not defined,

Error! Bookmark not defined

1 Overview of Financial stateraent audit

2 Overview of the ARC

3 Allowance for doubtful accounts s

4 Objectives of cuditing debt receivable from customers

5, Fraud and errors that may ooeur for bae debts

6 Process of auditing ARC ín audidng financial statements

IL METHODOLOGY FRAMEWORK Error! Baotumark nat defined.0

Error! Bookmark not defined.0

Error! Baokmark not dened.2

Error! Bookmark not defined.2 Error! Bookmark not defined.3

1 Introduction of ‘Thang Long -'1.D.& Company .2Birror! Bookmark not defined

2, Detailed audit program applied to auditing ARC at Thang Long - T.D.K Company 2Brrori B

3 Actual application of auditing process of ARC for BeeaKIN Vietnam Co., Ltd at

Thang Long - T.Ð.K Company

4, Comments on the process of auditing ARC at Thang Long - T.D.K Company

4.1 Advantages of auditing ARC at ‘Thang Long - T K Company

4.2 Some limitutivas in auditing ARC at Thaeg Long - T.D.K Company

V, CONCLUSION

REFERENCES

Table of Notations and Abbreviations

PART I: INFRODUCTIOX

1 RESEARCH NECESSITY

In the context of a transition to a market economy, implementing the policy

of diversifying forms of ownership, economic sectors are expanded and increasingly

play an important role in thẻ econumie development process of the country, the financial information of enterprises is used not only for reporling purposes lo state management agencies for inspection and approval bat also for investors and

business managers to exploit and use for economic decisions

Meeting the above requirements, audit activities come into being and become

an indispensable and important part of the life of economic activities Auditing increases the credibility of financial information, contributing to healthy economic

relations Based on the audit results, audited financial report users have accurate and

objective information, which can properly assess the financial situation as well as

the performance of the business lu addition to the main objective of giving opinions on financial statements, auditors, through (he audil process, it is possible to

make recommendations to help coterpriscs complete the control system, improve

efficiency in financial management in particular a3 well as business operations in general

In particular, auditing financial statements is a typical type of audit, in the information on the financial statements, the accounts receivable is of importance as

it affects the key indicators on the financial statemems Accounts receivable is

frequently the largest asset that a company has, so auditors tend to spend a considerable amount of time gaining assurance that the amount of the stated asset is

reasonable Therefore, auditing accounts receivable is an important part of the financial statement audit process Recognizing the importance of auditing accounts

receivable in the auditing process of financial statements, I decided Lo study the

“Audiling

topi

ounls receivable in the process of auditing financial statement at

Thang Long - T.D.K Company”

2, RESEARCH PURPOSE

Research objective and scope Error! Bookmark not defined,

Error! Bookmark not defined

1 Overview of Financial stateraent audit

2 Overview of the ARC

3 Allowance for doubtful accounts s

4 Objectives of cuditing debt receivable from customers

5, Fraud and errors that may ooeur for bae debts

6 Process of auditing ARC ín audidng financial statements

IL METHODOLOGY FRAMEWORK Error! Baotumark nat defined.0

Error! Bookmark not defined.0

Error! Baokmark not dened.2

Error! Bookmark not defined.2 Error! Bookmark not defined.3

1 Introduction of ‘Thang Long -'1.D.& Company .2Birror! Bookmark not defined

2, Detailed audit program applied to auditing ARC at Thang Long - T.D.K Company 2Brrori B

3 Actual application of auditing process of ARC for BeeaKIN Vietnam Co., Ltd at

Thang Long - T.Ð.K Company

4, Comments on the process of auditing ARC at Thang Long - T.D.K Company

4.1 Advantages of auditing ARC at ‘Thang Long - T K Company

4.2 Some limitutivas in auditing ARC at Thaeg Long - T.D.K Company

V, CONCLUSION

REFERENCES

PART I: INFRODUCTIOX

1 RESEARCH NECESSITY

In the context of a transition to a market economy, implementing the policy

of diversifying forms of ownership, economic sectors are expanded and increasingly

play an important role in thẻ econumie development process of the country, the financial information of enterprises is used not only for reporling purposes lo state management agencies for inspection and approval bat also for investors and

business managers to exploit and use for economic decisions

Meeting the above requirements, audit activities come into being and become

an indispensable and important part of the life of economic activities Auditing increases the credibility of financial information, contributing to healthy economic

relations Based on the audit results, audited financial report users have accurate and

objective information, which can properly assess the financial situation as well as

the performance of the business lu addition to the main objective of giving opinions on financial statements, auditors, through (he audil process, it is possible to

make recommendations to help coterpriscs complete the control system, improve

efficiency in financial management in particular a3 well as business operations in general

In particular, auditing financial statements is a typical type of audit, in the information on the financial statements, the accounts receivable is of importance as

it affects the key indicators on the financial statemems Accounts receivable is

frequently the largest asset that a company has, so auditors tend to spend a considerable amount of time gaining assurance that the amount of the stated asset is

reasonable Therefore, auditing accounts receivable is an important part of the financial statement audit process Recognizing the importance of auditing accounts

receivable in the auditing process of financial statements, I decided Lo study the

“Audiling

topi

ounls receivable in the process of auditing financial statement at

Thang Long - T.D.K Company”

2, RESEARCH PURPOSE

ACKNOWLEDGEMENT

EL would like to express the special gratitude to Tnternalional School of Vietaarm

‘National University for supporting re all the time Especially, I want to show my

thank fullness to my teacher as well as his guide, Mr Xgo Tri Trung MA., who gave

me the golden opportunity and inspiration to do this wonderful project Thanks to his patien( guidance, enthusiastic encouragement, useful critiques, excellent advice and considerable assistance, | was given strengthoncd motivation in keeping my progress on schedule and broaden the horizon about anditing knowledge

Additionally, I would like to send my sincere thanks to Thang Long - T.D.K

Company that facilitated me to experience and lear Tam so grateful for having a

chance to meet lots of professional people who also give advices, guidance and comments for my Lhesis