You are on page 1of 51

Glossary of auditing terms and Vietnamese equivalents

Students: D!"ng Th# Cc - 1KT 07 - 0704010006 Bi Th# Minh Ho$t - 2 KT 07 - 0704010022 Hong Xun Qu%nh - 1 KT 07 - 0704010052 V& Ph!"ng Th'o - 2KT 07 - 0704010056 Bi Th# An Hoi - CN2 0407010011

Supervisor: Mrs. !" Vn Anh

Table of content

1.Introduction 2.Literature review 3. Methodology 4. Glossary of auditing terms and Vietnamese equivalents 5. Limitation and conclusion 6. References

2 2 3 3 54

55

1.Introduction: Highly-developed business environment nowadays are in increased demand of assurance about reliable and trusted financial information. Auditing, therefore, is there to achieve this objective for the public. The role of audit has been becoming more and more important, especially after the collapse of some giant United States corparations causing the world economy to face up with a very hard period of time. In Vietnam particularly, there are the same great need for auditing and competent auditors. Consequently, many universities and many colleges such as Hanoi University have brought auditing subject to their curriculum in order to help the country train and create future knowledgable auditors. Besides, at time of globalization and integration, its another neccesity that the students who learn about auditing understand the audit-related terms apparently not only in Vietnamese but also in English. This research, establishing the glossary of auditing terms and equivalents in Vietnamese, is hopefully a foundation for students to fulfill the goal.

2. Literature review a. Auditing Auditing is defined as the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria (Arens Shailer & Elder, 2010). This job should be done by a competent and independent person, who is called an auditor. There are 3 main types of audit, namely Financial statement audit, Performance audit and Compliance audit.

! ! !

Financial statement audit: Determine whether the overall financial statements of an entity are stated in accordance with applicable accounting standard and accounting framework. Performance audit: Evaluate the effectiveness and efficiency of any part of an organizations operating procedures. Compliance audit: Determine whether the organization follows specific procedures, rules, or regulations set by some higher authority by reviewing its financial records.

Auditing terms are the specializing terms that relate to a lot of aspects of audit concepts and procedures. b. Auditing standards in Vietnam Auditing practices in Vietnam must follow Auditing standards which are regulated by the Ministry of Finance. Up to date, there are seven Decisions, consisting of thirty seven standards with detailed guidelines about auditing and other related activities. The first Decision (120/1999/Q!-BTC) was issued in 1999 and the latest one (101/2005/Q!-BTC)was in 2005. 3. Methodology To reach the objective of the research, stated in Introduction part, we contacted the consulting teacher to obtain standard auditing glossary in English, which include a list of auditing terms. Then, our task is to look up in the regulations in Vietnam and other references to find out the equivalent terms and equivalent explanation in Vietnamese. Our main source to carry out this task is Vietnam Auditing Standards. Besides, some other laws and regulations involve in the research process such as Law on Goverment auditing and Code of ethics for professional accountants and auditors. We also look at online sources to have deeper and more clearly understanding about these auditing terms. Finally, we combine all the sources to create a complete auditing glossary in both English and Vietnamese. 4. Auditing glossary and Vietnamese equivalents

Terms

Definition

Nghi

Gi#i thch

Notes

Access controls Controls designed to prevent Ki$m sot unauthorised use of IT equipment, data truy c%p files and computer programs

H( th)ng ki*m sot +!,c thi-t k- +* ng.n ch/n vi(c s0 d1ng khng +!,c cho php t2i cc trang thi-t b# cng ngh( thng tin, h3 s" d4 li(u v cc ch!"ng trnh my tnh.

Accountability The responsibility of an entity to report Trch nhi&m Trch nhi(m c5a m6t t7 ch8c v9 vi(c ph'i on its use of resources allocated for a gi#i trnh gi'i trnh v9 vi(c s0 d1ng cc ngu3n l:c specific purpose. +!,c phn b7 cho m6t m1c +ch c1 th* no +. Accounting An approximation of a financial '(c tnh k) L m6t gi tr# g;n +ng c5a m6t ch< tiu lin Decision estimate statement item in the absence of exact ton quan +-n bo co ti chnh +!,c !2c tnh 143/2001/Q!measurement trong tr!=ng h,p th:c t- + pht sinh nh!ng BTC /Standard ch!a c s) li(u chnh xc ho/c ch!a c 540/article 4 ph!"ng php tnh ton chnh xc h"n, ho/c m6t ch< tiu th:c t- ch!a pht sinh nh!ng + +!,c !2c tnh +* l>p bo co ti chnh

Accounting misstatement

Occur when an accounting item is not Sai st0 k) expressed to show its objective and ton truthful economic value. Include understatements and overstatements, through the use of inappropriate accounting treatment or disclosure policy Set as generally accepted accounting Chu*n m+c methods for specifec accoungting items k) ton The series of tasks and records of an entity by which transactions are processsed as a means of maintaing financial records

X'y ra khi m6t h$ng m1c k- ton khng +!,c trnh by m6t cch khch quan v +ng v2i gi tr# kinh t- th:c c5a n. Bao g3m0 bo co th?p h"n ho/c cao h"n th:c tdo0 vi(c h$ch ton v chnh sch cng khai thng tin khng ph h,p. @!,c thnh l>p gi)ng nh! cc ph!"ng php k- ton +!,c thAa nh>n chung cho tAng h$ng m1c k- ton c1 th*.

Accounting standards Accounting system

H& th,ng k) L cc qui +#nh v9 k- ton v cc th5 t1c k- Decision ton ton m +"n v# +!,c ki*m ton p d1ng +* 143/2001/Q!th:c hi(n ghi chp k- ton v l>p bo co ti BTC/ standard chnh. 400/article 11

Accounts A computer file containing details of payable master suppliers, details of transactions with file suppliers, and the balance owed. Account receivable master file Accounts receivable subsidiary ledger

S-0 t-ng h.p 0 M6t t>p d4 li(u trong my tnh ch8a +:ng cc kho#n cc thng tin chi ti-t v9 nh cung c?p, chi ph#i tr# ti-t v9 cc giao d#ch v2i cc nh cung c?p + v s) d! cn l$i. M6t t>p d4 li(u trong my tnh ch8a +:ng nh4ng thng tin chi ti-t v9 cc khch hng, cc giao d#ch v2i cc khch hng + v s) d! cn l$i.

A computer file containing details of S-0 t-ng h.p customers, details of transactions with cc kho#n customers, and the balance owed. ph#i thu

A ledger recording details of S-0 chi ti)t cc S7 ghi chp l$i chi ti-t v9 cc giao d#ch cho transactions by customer and showing kho#n ph#i tAng khch hng c1 th* v ch< ra s) d! cn the balance owed. thu ph'i thu. Decision 03/2005/Q!BTC/standard 1000/article 66

Adverse opinion An opinion expressed when the effect / ki)n khng B ki-n khng ch?p nh>n (ho/c C ki-n tri of a disagreement of a conflict between ch0p nh%n (/ ng!,c) +!,c +!a ra trong tr!=ng h,p cc applicable financial reporting ki)n tri v?n +9 khng th)ng nh?t v2i Gim +)c l frameworks is an extreme case and the ng1.c) quan trDng ho/c lin quan +-n m6t s) l!,ng auditor concludes that a qualification of l2n cc kho'n m1c +-n m8c m ki*m ton the auditors report is not adequate to vin v cng ty ki*m ton cho rEng C ki-n disclose the misleading or incomplete ch?p nh>n tAng ph;n l ch!a +5 +* th* hi(n nature of the financial report tnh ch?t v m8c +6 sai st trDng y-u c5a Bo co quy-t ton v)n +;u t! hon thnh, bEng mFu cu: "Theo C ki-n c5a chng ti, v 'nh h!Gng trDng y-u c5a nh4ng v?n +9 nu trn, Bo co quy-t ton v)n +;u t! hon thnh l khng trung th:c v khng h,p lC trn cc kha c$nh trDng y-u...".

Agency theory

Analytical evidence

Analytical procedures

A theory that presupposes that when L2 thuy)t investors entrust their resources to ng13i 45i managers- as agents- all parties di&n/ H6c involved in the relationship will act thuy)t v7 45i rationally and attempt to maximise their di&n. benefits. The agent is the source of the demand for the audit. This theory is also known as the stewardship monitoring hypothesis. Agent theory assumes that agents are self-interested individuals and that there is information asymmetry between the agent and the principals. Information asymmetry refers to the fact that agents have control over the information regarding resources whereas the principals do not. Self-interest agents will pursue selfinterest which, in turn, will result in agenct cost to the principals Audit evidence obtained through B8ng ch9ng applying analytical procedures. This phn tch. involves considering or comparing relationships that exist in the entitys financial information. Procedures that involve the study and Quy trnh comparison of relationships among data phn tch.

M6t hDc thuy-t gi' s0 rEng khi cc nh +;u t! tin t!Gng v trao v)n c5a hD cho cc nh qu'n lC- ng!=i th1 5y- th t?t c' cc bn lin quan +-n m)i quan h( ny sH hnh +6ng m6t cch c suy tnh v nI l:c +* t)i +a ha l,i nhu>n c5a hD. Ng!=i th1 5y chnh l n"i m ki*m ton c;n tm +-n nhi9u. HDc thuy-t ny c&ng +!,c bi-t +-n nh! HDc thuy-t v9 ng!=i qu'n gia. HDc thuy-t v9 +$i di(n cho rJng ng!=i th1 5y l nh4ng c nhn t! l,i v c t3n t$i tnh tr$ng thng tin b?t cn x8ng gi4a ng!=i th1 5y v nh4ng ng!=i ch5. Tnh tr$ng thng tin m?t cn x8ng m ch< +-n s: th>t rEng ng!=i th1 5y + c s: ki*m sot nh?t +#nh +)i v2i thng tin trong khi nh4ng ng!=i ch5 th khng. Ng!=i th1 5y t! l,i sH ch$y theo l,i ch c nhn, r3i sau +, sH gy ra chi ph +$i di(n m nh4ng ng!=i ch5 ph'i gnh ch#u. BEng ch8ng ki*m ton +$t +!,c thng qua vi(c p d1ng th5 t1c ki*m ton. @i9u ny lin quan +-n vi(cxem 0 xt, so snh cc m)i quan h( t3n t$i trong cc thng tin ti chnh c5a +"n v# +!,c ki*m ton. L vi(c phn tch cc s) li(u, thng tin, cc Decision tK su?t quan trDng, qua + tm ra nh4ng xu 219/2000/Q!h!2ng, bi-n +6ng v tm ra nh4ng m)i quan BTC/standard h( c mu thuFn v2i cc thng tin lin quan 500/article 26 khc ho/c c s: chnh l(ch l2n so v2i gi tr# + d: ki-n.

Application controls

Assertion

Controls that apply to the processing of Ki$m sot specific types of transactions, such as 9ng d:ng. invoicing customers, paying suppliers and preparing payroll. For computerised information system activities, application controls refer to control procedures that provide reasonable assurance that the recording, processing and reporting of data are properly performed for specific 0 applications. Statement made by management in C; s< d=n financial statements that relates to li&u (c>a bo economic actions and events co ti chnh)

H( th)ng ki*m sot +!,c 8ng d1ng cho qu trnh x0 lC cc lo$i nghi(p v1 c1 th* no +, v d1 nh! ghi ha +"n cho khch hng, thanh ton cho nh cung c?p v l>p b'ng l!"ng. @)i v2i vi(c x0 lC h( th)ng thng tin trn my tnh, ki*m sot 8ng d1ng m ch< t2i quy trnh ki*m sot cung c?p +'m b'o t!"ng +)i rEng vi(c h$ch ton, x0 lC v bo co s) li(u +!,c th:c hi(n theo ph!"ng th8c +ng +Ln cho tAng 8ng d1ng c1 th*.

Assessing control risk

Assurance

L c.n c8 c5a cc kho'n m1c v thng tin Decision trnh by trong bo co ti chnh do Gim 219/2000/Q!+)c (ho/c ng!=i +8ng +;u) +"n v# ch#u trch BTC/standard nhi(m l>p trn c" sG cc chuMn m:c v ch- 500/article 14 +6 k- ton qui +#nh ph'i +!,c th* hi(n r rng ho/c c c" sG +)i v2i tAng ch< tiu trong bo co ti chnh. The process of evaluating the !nh gi r>i Qu trnh +nh gi0 hi(u qu' c5a0 thi-t k- v 0 effectiveness of the design and ro ki$m sot ho$t +6ng c5a h( th)ng0 ki*m sot n6i b6 operation of an entitys internal controls c5a m6t cng ty trong vi(c ng.n ch/n ho/c in preventing or detecting material pht hi(n ra sai st trDng y-u trong cc bo misstatements in the financial co ti chnh. statements The provision of confidence and !#m b#o 0 Quy +#nh v9 s: b 0 'o m>t v +ng tin c>y0 c5a credibility regarding the integrity 0 of a thng tin subject matter. 0

Assurance engagement

L h,p +3ng d#ch v1, theo + ki*m ton Decision vin hnh ngh9 +!a ra C ki-n k-t lu>n nhEm 87/2005/Q!nng cao m8c +6 tin c>y c5a ng!=i s0 d1ng BTC/art 15 thng tin. H,p +3ng +'m b'o +!,c th:c hi(n +* cung c?p: a) S: +'m b'o G m8c +6 cao cc v?n +9 ph h,p v2i cc tiu chuMn +!,c +/t ra tA tr!2c xt trn cc kha c$nh trDng y-u; ho/c b) S: +'m b'o G m8c +6 vAa ph'i cc v?n +9 h,p l trong cc tr!=ng h,p c1 th*. Assurance The risk that the practitioner expresses R>i ro d?ch L r5i ro m ng!=i ti-n hnh d#ch v10 +!a ra engagement risk an inappropriate conclusion when the v: 4#m b#o. m6t k-t lu>n khng0 ph h,p khi thng tin d4 subject matter does not conform with li(u khng kh2p v2i nh4ng tiu ch + +!,c the identified criteria. +#nh tr!2c. Attest services Professional services that verify the truthfulness of a subject matter. D?ch v: ch9ng th+c M6t d#ch v10 chuyn nghi(p xc minh tnh trung th:c c5a0 thng tin

An engagement performed by a D?ch v: 4#m professional accountant with the b#o (H.p intention of enhancing the credibility of 4@ng 4#m information about a subject matter. b#o)

Attribute sampling

A sampling approach to determine the proportion of the population exhibiting a particular attribute, such as items in a transaction class whose processing deviates from laid-down control procedures.

L0y m=u ki$m ton (L0y m=u ) theo thuAc tnh

M6t cch l?y mFu +*0 chDn ra m6t ph;n c5a t7ng th* mang m6t0 thu6c tnh c1 th* no +, v d10 quy trnh x0 lC0 m6t lo$i nghi(p v10 no + khng tun theonh 0 4ng th5 t1c ki*m sot + +9 ra.

Audit

A service where the auditor provides a D?ch v: ki$m high level of assurance through ton The issue of a positive expression of an opinion that enhances the credibility of a written assertion about an accountability matter The provision of relevant and reliable information and a positive expression of opinion 0 about an accountability matter where the party responsible for the matter does not make a written assertion

L d#ch v1 +i hNi chuyn mn k- ton, Decision ki*m ton ho/c cc kO n.ng c lin quan do 87/2005/Q!m6t ng!=i hnh ngh9 k- ton, ki*m ton, BTC/article 10 thu-, t! v?n qu'n l v cc d#ch v1 t! v?n khc

Audit and attestation function

Activities which aim to provide the assurance of an accountability matter regarding its truthfulness

Ch9c nBng Cng vi(c th:c hi(n v2i m1c +ch cung c?p ki$m ton v s: +'m b'o v9 tnh trung th:c0 c5a thng tin ch9ng th+c gi'i trnh

Audit committee A committee of non-executive directors Cy ban ki$m Py ban g3m nh4ng gim +)c phi +i9u hnh responsible for overseeing financial ton ph1 trch theo di0 ch8c n.ng bo co0 ti reporting functions chnh Audit evidence Information obtained by the auditor in B8ng ch9ng 0 L t?t c' cc ti li(u, thng tin do ki*m ton Decision arriving at the conclusions on which the ki$m ton vin thu th>p +!,c lin quan +-n cu6c ki*m 219/2000/Q!audit opinion is based ton v d:a trn cc thng tin ny ki*m ton BTC/standard vin hnh thnh nn C ki-n c5a mnh 500/article 5 Audit The gap that exists between what users 0 expectation gap expect of an auditor and the service auditors provide. This gap is due ,in part, to the inadequate performance of auditors L kho'ng cch t3n t$i gi4a nh4ng +i9u m ng!=i s0 d1ng bo co ti chnh mong +,i tA ki*m ton vin v d#ch v1 m ki*m ton vin cung c?p. Kho'ng cch ny m6t ph;n gy ra bGi s: khng hon thnh +;y +5 cng vi(c c5a ki*m ton vin

Audit manager Staff member in charge of an audit. The0 Gim 4,c audit manager coordinates and ki$m ton supervises the execution of the audit work program and is responsible for client liaison Audit mandate An authority to undertake an audit and Cy thc ki$m provide a report. The mandate may ton prescribe the nature of the audit and the type of audit report expected. Audit planning The preparation of an overall audit strategy for the expected conduct and scope of the audit Audit program A detailed description of tests of controls and substantive procedures that are planned to be performed

Thnh vin c5a nhm ki*m ton ph1 trch cng vi(c ki*m ton.0 Gim +)c ki*m ton +i9u ph)i v gim st ho$t +6ng 0ki*m ton v ch#u trch nhi(m0 lin h( bo co v2i khch hng Py nhi(m +* th:c hi(n cng vi(c ki*m ton vo cung c?p bo co. Trong 5y thc c th* nu r b'n ch?t c5a ki*m ton v lo$i bo co ki*m ton + +#nh

L%p k) ho5ch L vi(c l>p k- ho$ch ki*m ton t7ng th* cho Decision143/20 ki$m ton cu6c ki*m ton v ph$m vi ki*m ton 01/Q!-BTC/ standard 300

Ch1;ng trnh L ton b6 nh4ng ch< dFn cho ki*m ton Decision143/20 ki$m ton vin v tr, lC ki*m ton tham gia vo cng 01/Q!-BTC/ vi(c ki*m ton v l ph!"ng ti(n ghi chp standard 300/ theo di, ki*m tra tnh hnh th:c hi(n ki*m article 6 ton. Ch!"ng trnh ki*m ton ch< dFn m1c tiu ki*m ton tAng ph;n hnh, n6i dung, l#ch trnh v ph$m vi c5a cc th5 t1c ki*m ton c1 th* v th=i gian !2c tnh c;n thi-t cho tAng ph;n hnh. Audit risk The risk that an auditor may give an R>i ro ki$m L r5i ro do ki*m ton vin v cng ty ki*m Decision143/20 inappropriate opinion on the finacial ton ton +!a ra C ki-n nh>n xt khng thch h,p 01/Q!-BTC/ information that is materially misstated khi bo co ti chnh + +!,c ki*m ton cn standard 400/ c nh4ng sai st trDng y-u. R5i ro ki*m ton article 7 bao g3m ba b6 ph>n: r5i ro ti9m tng, r5i ro ki*m sot v r5i ro pht hi(n. Audit risk model A model that express the relationships M hnh r>i L m hnh th* hi(n m)i quan h( gi4a ba b6 among audit risk components. It simply ro ki$m ton ph>n c5a r5i ro ki*m ton. @"n gi'n l r5i ro states that audit risk = inherent risk Q ki*m ton = r5i ro ti9m tngQ r5i ro ki*m control risk Q detection risk sot Q r5i ro pht hi(n

10

Audit team

A group of people responsible for an Nhm ki$m L nhm bao g3m: Ki*m ton vin hnh Decision audit, comprising a partner, a manager, ton (Nhm ngh9, cc ki*m ton vin v tr, lC ki*m ton 87/2005/Q!an audit senior and staff assistants cung c0p d?ch tham gia h,p +3ng ki*m ton (H,p +3ng BTC/article 24 v: 4#m b#o) +'m b'o) A chain of evidence provided by coding, cross-references and documentation that connects account balances and other summary results with original transaction data An independent examination of financial or non-financial information for the purpose of providing an assurance on the credibility of that information to intended users Methods and techniques used by the auditors to gather and evaluate audit evidence B8ng ch9ng H( th)ng cc bEng ch8ng +!a ra d!2i d$ng ki$m sot m ha, tham chi-u cho hay bEng ti li(u (D0u v)t ki$m nhEm m1c +ch +)i chi-u s) d! ti kho'n v ton) cc k-t qu' th)ng k khc v2i d4 li(u g)c 0 c5a cc giao d#ch Ki$m ton L m6t qu trnh ki*m tra +6c l>p nh4ng thng tin ti chnh ho/c0 phi ti chnh nhEm m1c +ch cung c?p s: +'m b'o v9 +6 tin c>y c5a thng tin + t2i nh4ng ng!=i s0 d1ng thng tin Quy trnh ki$m ton Ph!"ng php v kR thu>t s0 d1ng bGi ki*m ton vin +* thu th>p v +nh gi bEng ch8ng ki*m ton Cc chuMn m:c bao g3m nh4ng nguyn tLc c" b'n, nh4ng quy trnh0 c" b'n, v nh4ng0 h!2ng dFn c lin quan +!,c ban hnh cho ho$t +6ng ki*m ton

Audit trail

Auditing

Auditing procedures

Auditing standards

Standards that contain that basis principles and essential procedures, together with related guidance,promulgated by the profession for the practice of auditing Auditor liability the liability of an auditor for breaching a duty or for not fulfilling a contract

Chu*n m+c ki$m ton

Bank confirmation

Trch nhi&m Trch nhi(m c5a ki*m ton vin khi vi ph$m c>a ki$m ton nghOa v1 c5a mnh hay khng tun th5 theo vin (trch +ng h,p +3ng nhi&m ngh7 nghi&p) Written confirmation of the balance at Th1 xc nh%n B'n xc nh>n bEng v.n b'n c5a ngn hng bank and other matters received c>a ngn v9 s) d! ti kho'n c5a khch hng G ngn directly by the auditor from the entity's hng hng + v cc thng tin khc bank

11

Bank reconciliations

Schedules agreeing the balance of cash 0 B#ng 4,i at bank per the entity's record with the chi)u s, d1 balance shown on the statement of ngn hng, accounts received from the bank. The !i7u gi#i most common reconciling items are ngn hng) outstanding deposits and unpresented cheques

B'ng0 +)i chi-u s) d! ti9n g0i t$i ngn hng trong s7 cng ty v2i s) li(u0 trn0 s7 ph1 c5a ngn hng. Cc kho'n +) 0 i chi-u thng d1ng nh?t l0 ti9n0 +ang chuy*n) v sc ch!a0 thanh ton

Bank transfer schedule

Big Four

Schedules prepared by the auditor Danh m:c Danh m1c l>p bGi ki*m ton vin trong + listing bank transfers for a few days chuy$n kho#n li(t k cc kho'n chuy*n kho'n ngn hng either side of the end of the reporting ngn hng m6t vi ngy tr!2c ho/c sau th=i k bo period, and the dates recorded in the co,ngy chuy*n kho'n v bo co c5a ngn records and the bank statements hng The largest four international Big Four B)n hng ki*m ton l2n nh?t th- gi2i, bao accounting firms in the world-KPMG, g3m KPMG, PricewaterhouseCoopers, PricewaterhouseCoopers, Ernst&Young Ernst&Young v Delloite Touche Tohmatsu and Delloite Touche Tohmatsu L vi(c chDn cc +"n v# l?y mFu tA m6t t7ng th* bEng ph!"ng php l?y mFu ngFu nhin hay l:a chDn b?t k cc nhm +"n v# l?y mFu c cng tnh ch?t nh! ch4 ci +;u c5a tn khch hng hay ngy cc giao d#ch diSn ra L r5i ro m cng ty khng +$t +!,c m1c tiu + +* ra hay khng th:c hi(n +!,c kho$ch c5a mnh L m6t quy trnh ki*m ton trong + ki*m ton vin ki*m k ti9n m/t t$i quR v kh2p +ng s) d! v2i s70 k- ton 0

Block selection Selection of sampling units from a Ch6n nhm population by random or haphazard selection of characteristics held by clusters of sampling units, such as the initial letters of customers' names or the date at which the transaction occurred Business risk The risk that the entity will not achieve R>i ro kinh its objectives or execute its strategies doanh

Cash counts

Audit procedure of counting cash on Ki$m0 quD hand and agreeing the balance with the records

12

Cash cut-off tests

Cash receipts cut-off test

Audit procedure verifying the Ki$m tra th> agreement of cash receipts recorded in t:c phn chia the accounting records at close of nin 4A c>a business with the physical movement of ti7n cash A substantive procedure designed to Ki$m tra th> obtain reasonable assurance that cash t:c phn chia receipts are recorded in the accounting nin 4A nh%n period in which they are received ti7n A journal recording cash receipt 0 Nh%t k2 thu transactions for posting to the ledgers ti7n

Quy trnh ki*m ton xc nh>n s: +ng kh2p c5a l!,ng ti9n nh>n + ghi chp trong s7 kton v2i lu3ng vo th:c t- c5a ti9n. M6t quy trnh0 ki*m ton chi ti-t0 +!,c xy d:ng +* +'m b'o h,p lC 0rEng0 ti9n thu v9 + +!,c ghi chp trong +ng0 nin +6 0k- ton0 L s7 ghi chp cc giao d#ch0 thu ti9n +* ph'n nh vo s7 ci

Cash receipts journal

Common law

Unwritten law formulated, developed and administered by the courts

Thng lu%t

Lu>t b?t thnh v.n +!,c hnh thnh, pht tri*n v s0 d1ng bGi ta n

Comparatives

Amounts or disclosures of one or more Thng tin c previous 0periods that are presented on a tnh so snh comparative basis with those of the current period

Compilation engagements

Cc thng tin c tnh so snh trong bo co ti chnh c th* +!,c trnh by d!2i d$ng s) li(u (nh! tnh hnh ti chnh, k-t qu' ho$t +6ng kinh doanh, l!u chuy*n ti9n t() v cc gi'i trnh trong Thuy-t minh bo co ti chnh c5a +"n v# trong nhi9u n.m ti chnh ph1 thu6c vo chuMn m:c k- ton v9 trnh by bo co ti chnh +!,c p d1ng Engagements that require professional D?ch v: t-ng L d#ch v1 +i hNi ng!=i hnh ngh9 k- ton accountants to prepare or compile a h.p thng tin l>p ho/c t7ng h,p m6t bo co d:a trn subject matter based on certain criteria nh4ng tiu ch nh?t +#nh An assertion relating to financial information that all transactions and accounts have been presented in the financial statements

Decision 03/2005/Q!BTC/Standard 710/article 3

Decision 03/2005/Q!BTC/standard 930

Completeness

Tnh 4Ey 4> M6t tiu chuMn c5a c" sG dFn li(u c5a bo Decision co ti chnh trong + ton b6 ti s'n, cc 219/2000/Q!kho'n n,, nghi(p v1 hay giao d#ch + x'y ra BTC, Standard c lin quan +-n bo co ti chnh ph'i +!,c 500, point 14d ghi chp h-t cc s: ki(n lin quan

13

Compliance audit

An audit that involves obtaining and Ki$m ton evaluating evidence to determine tun th> whether certain financial and operating activities of an entity conform to specified conditions, rules or regulations Comprehensive Auditing that occurs when an auditor Ki$m ton auditing undertakes a range of audit and audit- ton di&n related services within an audit mandate for a client. It encompasses the elements of a financial statement audit, a compliance audit and a performance audit ComputerTechniques that involve using the KD thu%t assisted computer in performing auditing ki$m ton do audit techniques procedures vi tnh h" tr. Conceptual framework for auditing

L lo$i hnh ki*m ton +* ki*m tra, +nh gi Law on v xc nh>n vi(c tun th5 php lu>t, n6i quy, government 0 quy ch- m +"n v# +!,c ki*m ton ph'i th:c auditing of hi(n. Vietnam, Article 04, point 03. L cu6c ki*m ton trong + ki*m ton vin th:c hi(n m6t s) ho$t +6ng ki*m ton v cc d#ch v1 lin quan +-n ki*m ton cho m6t khch hng. Ki*m ton ton di(n bao g3m cc y-u t) c5a m6t cu6c ki*m ton bo co ti chnh, ki*m ton tun th5 v ki*m ton ho$t +6ng. Cc kR thu>t lin quan +-n vi(c s0 d1ng my tnh trong vi(c ti-n hnh cc quy trnh ki*m ton.

A theoretical framework that supports Khun kh- v7 L khun kh7 lC thuy-t, trong + s0 d1ng the key elements of an audit, using l2 thuy)t cc khi ni(m c tnh logic, hI tr, cc thnh logical concepts cho cc ho5t t) c" b'n c5a cu6c ki*m ton. 4Ang ki$m ton Confirmation of Written enquiry of suppliers, requesting Xc nh%n cc L vi(c ki*m ton vin +9 ngh# +"n v# +!,c accounts confirmation directly from an kho#n n. ki*m ton g0i th! yu c;u xc nh>n t2i nh payable independent source outside the entity ph#i tr# cung c?p nhEm xc minh cc kho'n n, ph'i tr' nh cung c?p. Confirmations A form of enquiry that enables the Xc nh%n auditor to obtain information directly thng tin tF from an independent source outside the bn ngoi entity L qu trnh thu th>p v +nh gi bEng ch8ng ki*m ton thng qua vi(c lin h( tr:c ti-p v2i bn th8 ba +* nh>n +!,c phc +p c5a hD v9 cc thng tin c1 th* 'nh h!Gng +-n c" sG dFn li(u +!,c ban Gim +)c l>p v trnh by trong bo co ti chnh c5a +"n v# +!,c ki*m ton. Decision 101/2005/Q!BTC, Standard 505, point 06

14

Conformation role

The auditor's function in ensuring that Vai tr tun the organization conforms to policies, th> procedures and statutory matters

Ch8c n.ng c5a ki*m ton vin trong vi(c +'m b'o +"n v#0 tun th5 theo cc chnh sch, quy trnh v cc v?n +9 php lC 0 Decision 100/2005/Q!BTC, Standard 18, point 07. (VAS or VSA)

Contingent liability

Continuous auditing

A potential liability that becomes an N. ti7m tng L (1) nghOa v1 n, c kh' n.ng pht sinh tA actual liability when one or more future cc s: ki(n + x'y ra v s: t3n t$i c5a nghOa events occurs or fails to occur v1 n, ny sH ch< +!,c xc nh>n bGi kh' n.ng hay x'y ra ho/c khng x'y ra c5a m6t ho/c nhi9u s: ki(n khng chLc chLn trong t!"ng lai m doanh nghi(p khng ki*m sot +!,c; ho/c (2) nghOa v1 n, hi(n t$i pht sinh tA cc s: ki(n + x'y ra nh!ng ch!a +!,c ghi nh>n v (a) khng chLc ch.n c s: gi'm st v9 l,i ch kinh t- do vi(c ph'i thanh ton nghOa v1 n, ho/c (b) gi tr# c5a nghOa v1 n, + khng +!,c xc +#nh m6t cch +ng tin c>y. Auditing activities that provide an Ki$m ton Cc ho$t +6ng ki*m ton cung c?p m8c +6 ongoing level of assurance on a subject lin t:c +'m b'o lin t1c +)i v2i m6t v?n +9. matter A relationship between two contracting Quan h& h.p M)i quan h( gi4a hai bn tham gia vo h,p parties 4@ng +3ng.

Contractual relationship

Contributory negligence

The failure of the plaintiff to meet certain required standards of care

L"i do b0t c*n

Bn nguyn +"n khng +p 8ng m6t s) chuMn m:c theo quy +#nh v9 m8c +6 cMn trDng Cc th5 t1c v chnh sch m ban qu'n tr# +!a ra +* +'m b'o cc ch< th# +!,c th:c hi(n +;y +5.

Control activities

Policies and procedures that Ho5t 4Ang management establishes to help ensure ki$m sot that its directives are carried out

15

Control environment

The overall attitude, awareness and actions of management regarding internal control and its importance in the entity

Control procedures

Control risk

Co-regulation

L nh4ng nh>n th8c, quan +i*m, s: quan Decision tm v ho$t +6ng c5a thnh vin H6i +3ng 143/2001/Q!qu'n tr#, Ban gim +)c +)i v2i h( th)ng BTC, Standard ki*m sot n6i b6 v vai tr c5a h( th)ng 400, point 12 ki*m sot n6i b6 trong +"n v#. Those policies and procedures, in Th> t:c ki$m L cc quy ch- v th5 t1c do Ban lnh +$o Decision addition to the control environment, sot +"n v# thi-t l>p v ch< +$o th:c hi(n trong 143/2001/Q!that management has established to +"n v# nhEm +$t +!,c m1c tiu qu'n lC c1 BTC, Standard ensure that , as far as possible, specific th*. 400, point 13 entity objectives will be achieved A risk that a material misstatement will R>i ro ki$m L r5i ro x'y ra sai st trDng y-u trong tAng Decision not be prevented or detected on a sot nghi(p v1, tAng kho'n m1c trong bo co ti 143/2001/Q!timely basis by an entity's internal chnh khi tnh ring rH ho/c tnh g6p m h( BTC, Standard control structure th)ng k- ton v h( th)ng ki*m sot n6i b6 400, point 05 khng ng.n ngAa h-t ho/c khng pht hi(n v s0a ch4a k#p th=i. The environment within which both !@ng ki$m Mi tr!=ng trong + c' Chnh ph5 v cc the government and the auditing sot cng ty ki*m ton cng th:c hi(n vai tr profession exert active controls ki*m sot Evidence obtained by an auditor in Thng tin support of transactions recorded in the ch9ng th+c accounting records of an entity An assurance on the relevance and reliability of information Ch8ng c8 +!,c ki*m ton vin thu th>p nhEm hI tr, cc giao d#ch +!,c ghi trong s7 sch k- ton c5a doanh nghi(p.

Mi tr13ng ki$m sot

Corroborating information

Credibility (of information)

M9c 4A tin L m6t +'m b'o v9 tnh ph h,p v +6 tin c%y c>a thng c>y c5a thng tin. tin L h3 s" ki*m ton ch8a +:ng cc thng tin Decision v9 khch hng ch< lin quan t2i cu6c ki*m 120/1999/Q!ton m6t n.m ti chnh. BTC, Standard 230, point 05

Current file

A file that contains corroborating H@ s; ki$m information relating to the execution of ton nBm the current year's audit program

16

Cut off

An assertion that relates to whether all Tnh 4ng kG L m6t tiu chuMn c5a c" sG dFn li(u c5a transactions, events and accounts have bo co ti chnh trong + ton b6 cc giao been recorded in the correct period d#ch, s: ki(n v ti kho'n +!,c ghi nh>n vo +ng th=i k 0 %. Tests performed on the transactions around year-end to ensure the completeness and occurrence of transactions Cc thH nghi&m ki$m tra tnh 4ngk 0G L cc th0 nghi(m nhEm ki*m tra cc giao d#ch pht sinh vo cu)i nin +6 +* +'m b'o cc giao d#ch ny th:c s: pht sinh v +!,c ghi nh>n +;y +5.

Cut off tests

Cyclical inventory counts Damages

Periodic inventory counts that count, Ki$m k 4?nh L vi(c +#nh k 0 % ki*m k, trong su)t m6t over a year, all or most inventory items G 0 hng n.m k- ton, ton b6 ho/c h;u h-t hng t3n t@n kho kho. An amount awarded as compensation B@i th13ng for the losses suffered by plaintiffs in a thi&t h5i legal action A listing of bank notes, coins and Bin lai ti7n individual cheques for deposit with the gHi bank, a copy of which is receipted by bank teller and retained by the entity A risk that the auditor's substantive procedures will collectively fail to detect a material misstatement. R>i ro pht hi&n M8c +9n b cho nh4ng thi(t h$i bn nguyn +"n ph'i ch#u trong m6t s: v1 php lC.

Deposit slip

L b'n li(t k cc lo$i ti9n +!,c g0i vo ngn hng.

Detection risk

L r5i ro x'y ra sai st trDng y-u trong tAng Decision nghi(p v1, tAng kho'n m1c trong bo co ti 143/2001/Q!chnh khi tnh ring rH ho/c tnh g6p m BTC, Standard trong qu trnh ki*m ton, ki*m ton vin v 400, point 06 cng ty ki*m ton khng pht hi(n +!,c.

17

Deviation

The failure to apply a control properly Sai ph5m and consistently, or its application by an unauthorized employee.

Deviation rate

The proportion of a sample of transactions tested that have not been processed in accordance with laiddown control procedures. Expressed when possible effect of a limitation on scope is an extreme case and the auditor has not been able to obtain sufficient appropriate audit evidence and accordingly is unable to express an opinion on the financial report.

L vi(c khng th:c hi(n ho/c th:c hi(n sai th5 t1c ki*m sot, pht hi(n +!,c qua cc th0 nghi(m ki*m sot ho/c cc sai l(ch v9 thng tin ho/c s) li(u pht hi(n +!,c qua cc th0 nghi(m cG b'n, do c nhn ho/c t>p th* gy ra m6t cch c) C (gian l>n) ho/c khng c) C (sai st). T7ng sai ph$m +!,c tnh bEng t< l( lIi ho/c t7ng gi tr# sai l(ch v9 s) li(u. TI l& sai ph5m L t< l( cc giao d#ch khng tun th5 theo cc th5 t1c ki*m sot trong m6t mFu +!,c th0 nghi(m.

Decision 143/2001/Q!BTC, Standard 530, point 05

Disclaimer of opinion

/ ki)n tF ch,i L C ki-n +!,c +!a ra trong tr!=ng h,p h>u (hoJc 2 ki)n qu' c5a vi(c gi2i h$n ph$m vi ki*m ton l khng th$ quan trDng ho/c thi-u thng tin lin quan 41a ra 2 ki)n) +-n m6t s) l!,ng l2n cc kho'n m1c t2i m8c m ki*m ton vin khng th* thu th>p +;y +5 v thch h,p cc bEng ch8ng ki*m ton +* c th* cho C ki-n v9 bo co ti chnh. Documentary Information about financial transactions B8ng ch9ng Thng tin v9 bo co ti chnh +!,c bao evidence contained in documents such as source ch9ng tF g3m trong cc lo$i ch8ng tA nh! ch8ng tA documents, agreements, contracts, g)c, thNa thu>n, h,p +3ng, ha +"n v bo various types of forms, invoices and co. statements. Documenting Documenting a description of the Ghi nh%n L!u vo h3 s" ki*m ton m t' c" c?u ki*m the internal control structure in the form of hi$u bi)t v7 sot n6i b6 c5a +"n v# +!,c ki*m ton d!2i understanding completed internal control 4;n v? hnh th8c cc cu hNi +i9u tra v9 ki*m sot questionnaires, flowcharts or narrative n6i b6, bi*u +3 diSn ti-n ho/c bin b'n memoranda. t!=ng thu>t. Documents and Documents provide evidence on Ch9ng tF v Ch8ng tA cung c?p bEng ch8ng v9 cc giao records specific transactions that have occurred, s- sch k) d#ch c1 th* pht sinh v cc ghi chp l tm and records are summaries of ton tLt c5a cc giao d#ch pht sinh. transactions that have occurred.

Decision 120/1999/Q!BTC, Standard 700, point 42

18

Dual-purpose test

A test that serves as both a test of controls and a test of details of transactions.

ThH nghi&m M6t th0 nghi(m trong + ki*m ton vin c kp th* th:c hi(n th0 nghi(m ki*m sot cng v2i th0 nghi(m c" b'n cho cng m6t nghi(p v1. Ki*m ton vin ph'i th:c hi(n cng vi(c check ki*m ton v2i +;y +5 n.ng l:c chuyn mn c;n thi-t, v2i s: th>n trDng cao nh?t v tinh th;n lm vi(c chuyn c;n. L cc bi(n php p d1ng chocc 0 ti kho'n v thng tin ti chnh khc nhau +* +!a ra m6t k-t qu' mong mu)n v9 tnh hnh ti chnh c5a +"n v# 0 B?t c8 thng tin no +!,c t$o ra v duy tr bGi cc cng c1 +i(n t0 m ki*m ton vin s0 d1ng +* +!a ra C ki-n v9 m6t c" sG dFn li(u. L m6t +o$n nh>n xt nEm trong bo co Decision ki*m ton +!a ra C ki-n ch?p nh>n ton ph;n 120/1999/Q!+* lm sng tN m6t s) y-u t) 'nh h!Gng BTC, Standard khng trDng y-u +-n bo co ti chnh, 700, point 37 nh!ng khng c 'nh h!Gng +-n bo co ki*m ton. @o$n nh>n xt ny th!=ng +/t sau +o$n +!a ra C ki-n nhEm gip ng!=i +Dc +nh gi 'nh h!Gng c5a cc y-u t) 'nh h!Gng +-n bo co ti chnh.

Due care

Earnings management

Not being negligent-that is, planning Tnh th%n and performing an audit and issuing an tr6ng ngh7 audit opinion with skill and nghi&p competence, having regard to the needs of users. The measures applied to accounts and Hnh vi ph financial information in order to php l.i express a certain desirable outcome for nhu%n the entity's financial position. Any information produced and B8ng ch9ng maintained by electronic means that an 4i&n tH auditor uses to form opinion about an assertion. A paragraph highlighting a matter in an !o5n l1u 2 unqualified auditor's report following an audit opinion in specified circumstances, such as uncertainty over the question of the entity's going concern status.

Electronic evidence

Emphasis of matter

19

Engagement letter

L s: tho' thu>n bEng v.n b'n gi4a cc bn Decision tham gia kC k-t (cng ty ki*m ton, khch 120/1999/Q!hng) v9 cc +i9u kho'n v +i9u ki(n th:c BTC, Standard hi(n ki*m ton c5a khch hng v cng ty 210, point 04 ki*m ton, trong + xc +#nh m1c tiu, ph$m vi ki*m ton, quy9n v trch nhi(m c5a mIi bn, hnh th8c bo co ki*m ton, th=i gian th:c hi(n v cc +i9u kho'n v9 ph, v9 x0 lC khi tranh ch?p h,p +3ng. H,p +3ng ki*m ton ph'i +!,c l>p v kC chnh th8c tr!2c khi ti-n hnh cng vi(c ki*m ton nhEm b'o v( l,i ch c5a khch hng v c5a cng ty ki*m ton. Enquiry Either oral or written questions by the !i7u tra L vi(c tm ki-m thng tin tA nh4ng ng!=i Decision auditor. c hi*u bi-t tA bn trong ho/c bn ngoi +"n 219/2000/Q!v#. @i9u tra +!,c th:c hi(n bEng vi(c chnh BTC, Standard th8c g0i v.n b'n, phNng v?n ho/c trao +7i 500, point 23 k-t qu' +i9u tra, sH cung c?p cho ki*m ton vin nh4ng thng tin ch!a c, ho/c nh4ng thng tin b7 sung +* c5ng c) cc bEng ch8ng + c. Enterprise risk A process applied in strategy setting Qu#n tr? r>i L quy trnh +!,c p d1ng trong khu thi-t management and across the entity designed to ro cho l>p chi-n l!,c kinh doanh v xuyn su)t identify potential events that may affect doanh nghi&p ho$t +6ng c5a doanh nghi(p nhEm pht hi(n the entity, and manage risk to be within nh4ng bi-n c) c kh' n.ng 'nh h!Gng t2i its risk appetite, to provide reasonable +"n v# v ki*m sot r5i ro trong ph$m vi cho assurance regarding the achievement of php; +3ng th=i +'m b'o G m8c h,p lC rEng the entity's objectives. +"n v# sH +$t +!,c cc m1c tiu kinh doanh + +9 ra. Environmental An audit that responds to the growing Ki$m ton Ki*m ton mi tr!=ng l cng c1 qu'n lC audit concern of business to control their mi tr13ng bao g3m m6t qu trnh +nh gi c tnh h( environmental performance more th)ng, +#nh k% v khch quan +!,c v.n b'n effectively and to comply with a range ha v9 vi(c lm th- no +* th:c hi(n t7 ch8c of environmental regulations. mi tr!=ng, qu'n lC mi tr!=ng v trang thi-t b# mi tr!=ng + ho$t +6ng t)t.

A letter (contract) stating the scope and H.p 4@ng terms of the audit ki$m ton engagement.

20

Ethical issues

Ethical Relativism

Situations where individuals have to make a choice from unclear and complex alternatives, where each alternative may be the right choice according to a specific moral or viewpoint. A view that moral values are relative to a particular environment, and that they vary according to circumstances. An assertion relating to financial statements that assets and liabilities exist at a given date.

Xung 4At v7 L tnh hu)ng m trong + m6t c nhn ph'i 45o 49c l:a chDn gi4a nh4ng ph!"ng n ph8c t$p v khng r rng; mIi ph!"ng n c th* l l:a chDn chnh xc theo m6t chuMn m:c +$o +8c ho/c quan +i*m nh?t +#nh. Thuy)t t1;ng L m6t quan +i*m cho rEng cc gi tr# +$o 4,i v7 +8c l t!"ng +)i trong m6t 45o 49c mi tr!=ng c1 th* v chng thay +7i theo tAng hon c'nh. Hi&n hKu M6t tiu chuMn c5a c" sG dFn li(u c5a bo co ti chnh trong + m6t ti s'n hay m6t kho'n n, ph'n nh trn bo co ti chnh th:c t- ph'i t3n t$i (c th:c) vo th=i +i*m l>p bo co. L sai st m ki*m ton vin d: tnh l t3n t$i trong t7ng th*. Decision 219/2000/Q!BTC, Standard 500, point 14a

Existence

Expected error The error that the auditor expects to be Sai st d+ present in the tnh population. Experts Specialists in areas other than auditing Chuyn gia who may be consulted or called on to assist in the audit.

L m6t c nhn ho/c m6t t7 ch8c c n.ng l:c, kin th8c v kinh nghi(m chuyn mn cao trong m6t lOnh v:c ring bi(t ngoi lOnh v:c k- ton v ki*m ton.

Decision 03/2005/Q!BTC, Standard 620, point 04 Decision 101/2005/Q!BTC, Standard 320, point 63 Decision 28/2003/Q!BTC, Standard 220, point 07

Extent of substantive procedure External auditors

The number of items or sample size to Ph5m vi th+c S) l!,ng ph;n t0 ho/c cT mFu m trn + which a particular test or procedure is hi&n cc m6t th0 nghi(m ho/c th5 t1c ki*m ton c1 applied. th> t:c c; th* +!,c ti-n hnh. b#n Individual practitioners or members of Ki$m ton public accounting firms who render vin professional auditing services to clients. L nh4ng ng!=i c ch8ng ch< ki*m ton vin + +.ng k hnh ngh9 t$i m6t doanh nghi(p ki*m ton +!,c thnh l>p v ho$t +6ng theo php lu>t Vi(t Nam v +!,c cng ty ki*m ton giao trch nhi(m k bo co ki*m ton.

21

Financial statement assertions

C; s< d=n L c.n c8 c5a cc kho'n m1c v thng tin Decision li&u c>a bo trnh by trong bo co ti chnh do Gim 219/2000/Q!co ti chnh +)c (ho/c ng!=i +8ng +;u) +"n v# ch#u trch BTC, Standard nhi(m l>p trn c" sG cc chuMn m:c v ch- 500, point 14 +6 k- ton quy +#nh ph'i +!,c th* hi(n r rng ho/c c c" sG +)i v2i tAng ch< tiu trong bo co ti chnh. Financial An audit that enables an auditor to Ki$m ton M6t cu6c ki*m ton cho php ki*m ton statement express an opinion as to whether the bo co ti vin v cng ty ki*m ton +!a ra C ki-n xc audit financial statements are prepared, in all chnh nh>n rEng bo co ti chnh c +!,c l>p trn material respects, in accordance with an c" sG chuMn m:c v ch- +6 k- ton hi(n identified financial reporting hnh (ho/c +!,c ch?p nh>n), c tun th5 framework. php lu>t lin quan v c ph'n nh trung th:c v h,p lC trn cc kha c$nh trDng y-u hay khng? Financial Dishonest activities that result in Gian l%n bo L nh4ng hnh vi c) C lm sai l(ch thng tin Decision statement fraud misleading financial statements co ti chnh kinh t-, ti chnh do m6t hay nhi9u ng!=i 143/2001/Q!trong H6i +3ng qu'n tr#, Ban Gim +)c, cc BTC, Standard nhn vin ho/c bn th8 ba th:c hi(n, lm 240, point 4 'nh h!Gng +-n bo co ti chnh Flow chart A schematic diagram using L1u 4@ L bi*u +3 s0 d1ng nh4ng bi*u t!,ng +!,c standardized symbols, interconnecting tiu chuMn ho, +!=ng n)i v ch thch +* flow lines and annotations that portrays diSn t' cc b!2c lin quan +-n vi(c x0 lC steps involved in processing thng tin thng quan h( th)ng thng tin information through information qu'n lC system Forensic audit Auditing activities that involve in Th*m tra Cng vi(c ki*m ton lin quan +-n +i9u tra investigation of fraud and fraudulent php l2 gian l>n v cc hnh vi gian l>n. Trong qu activities trnh ki*m ton, ki*m ton vin v cng ty ki*m ton c trch nhi(m gip +"n v# pht hi(n, x0 lC v ng.n ngAa gian l>n. Fraud An intentional act of dishonesty or Gian l%n Hnh vi khng trung th:c ho/c sai ph$m moral lapse +$o +8c m6t cch c) C

Statement made by management in financial statements that relates to economic actions and events.

22

Generalised audit software

Audit software that auditor uses under a PhEn m7m variety of data organization and ki$m ton processing methods t-ng qut

Global reporting An independent initiative started in initiative 1977 to develop and disseminate globally applicable sustainability reporting guidelines. It provides a generally accepted framework for reporting an organisation's economic, environmental and social performance Going concern An entity that envisages no major curtailment of its operation in the foreseeable future, and that assumes its going viability by being able to pay off its debts.

Going concern 0 An assumption that an entity an entity assumption will continue in the future unless evidence is available to the contrary

L m6t trong nh4ng cng c1 IT Ki*m ton vin s0 d1ng +* c +!,c bEng ch8ng tr:c ti-p v9 ch?t l!,ng c5a cc h3 s" s'n xu?t v duy tr bGi cc h( th)ng 8ng d1ng. V d1, ph;n m9m ki*m ton t7ng qut c th* hon thnh nhi(m v1 ki*m ton sau +y: Ki*m tra h3 s" ch?t l!,ng, +;y +5, nh?t qun, v s: +ng +Ln (ngn hng xem xt nhu c;u ti9n g0i cc t>p tin +)i v2i ti9n g0i v rt ti9n l2n b?t th!=ng) Sng ki)n bo L sng ki-n +6c l>p bLt +;u tA n.m 1977 co ton cEu nhEm pht tri*n v ph7 bi-n h!2ng dFn nh4ng nguyn tLc 7n +#nh v9 bo co +!,c 8ng d1ng trn ton c;u. GRI l m6t ch!"ng trnh khung +!,c ch?p nh>n r6ng ri, p d1ng vo vi(c bo co tnh hnh ch?t l!,ng ho$t +6ng kinh t-, mi tr!=ng v x h6i c5a m6t t7 ch8c. Ho5t 4Ang M6t +"n v# +!,c coi l ho$t +6ng lin t1c Decision lin t:c trong m6t t!"ng lai g;n c th* d: +on +!,c 193/2003/Q!(t nh?t l m6t n.m k* tA ngy k-t thc nin BTC, standard +6 k- ton) khi khng c C +#nh ho/c yu 570, point 4 c;u ph'i gi'i th*, ngAng ho$t +6ng ho/c thu hUp +ng k* quy m ho$t +6ng, tm ki-m s: b'o h6 tA cc ch5 n, theo php lu>t v cc quy +#nh hi(n hnh. Gi# 4?nh ho5t Gi' +#nh ho$t +6ng lin t1c l m6t nguyn Decision 4Ang lin t:c tLc c" b'n khi l>p v trnh by bo co ti 193/2003/Q!chnh. Theo gi' +#nh ny, ti s'n v n, ph'i BTC, standard tr' +!,c ghi nh>n d:a trn c" sG l +"n v# c 570, point 5 kh' n.ng th:c hi(n gi tr# cc ti s'n v thanh ton cc kho'n n, ph'i tr' trong +i9u ki(n kinh doanh bnh th!=ng.

23

Government auditors

Public sectors auditors who audit the Ki$m ton Ki*m ton vin nh n!2c l cng ch8c nh account of municipalities and state and vin nh n1(c n!2c +!,c b7 nhi(m vo ng$ch ki*m ton federal governments, and who report +* th:c hi(n nhi(m v1 ki*m ton. their audit findings to the respective parliaments Ho$t +6ng ki*m ton vin nh n!2c l vi(c ki*m tra, +nh gi v xc nh>n tnh +ng +Ln, trung th:c c5a bo co ti chnh; vi(c tun th5 php lu>t; tnh kinh t-, hi(u l:c v hi(u qu' trong qu'n lC, s0 d1ng ngn sch, ti9n v ti s'n nh n!2c.

Law on government audit 37/2005/ QH11, article 3

Haphazard selection

Independence

@)i t!,ng ki*m ton c5a Ki*m ton Nh n!2c l ho$t +6ng c lin quan +-n qu'n lC, s0 d1ng ngn sch, ti9n v ti s'n nh n!2c. Selection of sampling units from L+a ch6n b0t L m6t trong s) cc ph!"ng php l:a chDn Decision population by observation kG ph;n t0 vo mFu, trong + ki*m ton vin 143/2001/Q!l:a chDn cc ph;n t0 khng theo m6t tr>t t: BTC, Standard no nh!ng ph'i trnh b?t k% s: thin l(ch 540, point 44, ho/c +#nh ki-n ch5 quan no (V d1: bN qua appendix 3 cc ph;n t0 kh tm ho/c lun lun chDn cc ph;n t0 nEm G dng +;u tin ho/c dng cu)i c5a trang) +3ng th=i ph'i +'m b'o cho t?t c' cc ph;n t0 trong t7ng th* +9u c c" h6i +!,c chDn. Ph!"ng php l:a chDn b?t k% khng ph h,p khi l?y mFu th)ng k. Ability to withstand pressure from !Ac l%p L nguyn tLc hnh ngh9 c" b'n c5a ki*m Decision management influence when ton vin. Trong qu trnh ki*m ton, ki*m 120/1999/Q!conducting an audit or providing audit ton vin ph'i th:c s: khng b# chi ph)i BTC, standard related services, such that one's ho/c tc +6ng bGi b?t k% l,i ch v>t ch?t 200, point 16 professional integrity is not ho/c tinh th;n no lm 'nh h!Gng +-n s: compromised trung th:c, khch quan v +6c l>p ngh9 nghi(p c5a mnh.

24

Independence checks

The verification of work previously Ki$m tra 4Ac performed by other individuals or l%p departments, or the proper valuation of recorded amount

Information asymmetry

L vi(c th:c hi(n cc th5 t1c ki*m ton +)i 0 source of v2i cc d4 li(u +!,c s0 d1ng +* xc +#nh v Vietnamese trnh by gi tr# h,p lC v +nh gi xem gi definition tr# h,p lC ny c +!,c xc +#nh m6t cch +ng +Ln trn c" sG cc d4 li(u v cc gi' +#nh c5a Ban Gim +)c +"n v# +!,c ki*m ton hay khng. Occurs when there are differences in Thng tin b0t L vi(c cc bn tham gia giao d#ch c) tnh 0 source of the degree of control and understanding cn x9ng che +>y thng tin. Khi +, gi c' khng ph'i Vietnamese of information between parties l gi cn bEng c5a th# tr!=ng m c th* qu definition th?p ho/c qu cao. A hypothesis that posits that the Gi# thuy)t demand for auditing is a result of thng tin investors wanting reliable information that can be used effectively in decision making. Unlike agency theory, the emphasis is not so much on the agent as on the reliability of the information. Controls that cover risks related to the Ki$m sot xH authorisation, completeness and l2 thng tin accuracy of transactions The information relevant to financial reporting objectives consists of the procedures and records established to initiate, record, process and report entity transactions (as well as events and conditions) and to maintain accountability for the related assets, liabilities and equity A material misstatement that could occur in the absent of internal controls H& thng thng tin L gi' thuy-t thAa nh>n rEng nhu c;u c5a 0 source of ki*m ton l k-t qu' c5a vi(c nh +;u t! Vietnamese mu)n c nh4ng thng tin +ng tin c>y v definition h4u d1ng trong vi(c +!a ra quy-t +#nh +;u t! c5a hD. L ki*m sot +* trnh nh4ng r5i ro lin quan t2i0 ph duy(t nghi(p v1, tnh chnh xc v +;y +5 c5a cc nghi(p v1 Nh4ng thng tin lin quan +-n m1c +ch bo0 source of co ti chnh, bao g3m: Vietnamese + Nh4ng quy trnh v bo co v9 vi(c bLt definition +;u, ghi l$i, x0 lC v bo co nghi(p v1 c5a cng ty + Duy tr cng vi(c k- ton cho cc ti kho'n: ti s'n, n, v v)n sT h4u lin quan L r5i ro ti9m Mn, v)n c do kh' n.ng tAng Decision nghi(p v1, tAng kho'n m1c trong bo co ti 143/2001/Q!chnh ch8a +:ng sai st trDng y-u khi tnh BTC, Standard ring rH ho/c tnh g6p, m/c d c hay khng 400, point 4 c h( th)ng ki*m sot n6i b6.

Information hypothesis

Information processing controls Information system

Inherent risk

R>i ro ti7m tng

25

Initial audit engagement (Initial engagement) Inspection

The first audit of an entity by the particular audit firm

Ki$m ton L ki*m ton n.m m Bo co ti chnh n.m Decision nBm 4Eu tin tr!2c +: 219/2000/Q!- Ch!a +!,c ki*m ton; ho/c BTC, Standard - @!,c cng ty ki*m ton khc ki*m ton. 510, point 5 Xem xt kR l!Tng ho/c ki*m tra chi ti-t ch8ng tA,0 s7 sch ho/c xem xt tr:c ti-p nh4ng ti s'n h4u hnh ho/c ngu3n h4u hnh khc L gi' thi-t rEng0 cc nh qu'n lC v nh4ng 0 ng!=i tham gia vo cc ho$t +6ng ti chnh 0 c xu h!2ng coi ki*m ton vin nh! m6t ph!"ng th8c0 b'o hi*m-0 V c nghOa l0 trch nhi(m ti chnh pht sinh do t7n th?t tA cc v1 ki(n t1ng +!,c chuy*n sangki 0 *m ton vin.

Careful scrutiny or detailed Ki$m tra examination of documents and records, and the physical examination of tangible sources A view that posits that managers and Gi# thuy)t professional participants in financial 4#m b#o activities seek to use an auditor as a means of insurance - that is, as a means of shifting financial responsibility if any losses are expected from litigation

Insurance hypothesis

Interim audit

Cng vi(c ki*m ton +!,c th:c hi(n tr!2c khi k-t thc n.m ti chnh. Thng th!=ng, ki*m ton s" b6 bao g3m th:c hi(n th0 nghi(m ki*m sot v th0 nghi(m chi ti-t c5a nghi(p v1. Interim A set of half-yearly statements, Bo co ti Bo co ti chnh s" b6 c5a m6t cng ty financial report including an income statement, a chnh giKa kG +!,c chuMn b# vo mIi n0a n.m, bao g3m: balance sheet/statement of financial Bo co thu nh>p, b'ng cn +)i k- ton, bo position, a statement of cash flows and co l!u chuy*n ti9n t( v thuy-t minh bo selected explanatory notes, to be co ti chnh, +!,c cng b) bGi cng ty +. prepared by a disclosing entity

Audit work performed before the end Ki$m ton of the reporting period. Typically, this giKa kG involves performing tests of controls and tests of details of transactions

26

Internal audit

An independent appraisal function Ki$m ton nAi Ki*m ton n6i b6 l ho$t +6ng +nh gi v Decision established within an organization to bA t! v?n +6c l>p trong n6i b6 t7 ch8c, +!,c 143/2001/Q!examine and evaluate the activities of thi-t k- nhEm c'i ti-n v lm t.ng gi tr# cho BTC/standard the entity as a service to an entity as a cc ho$t +6ng c5a t7 ch8c +, gip t7 ch8c 610, point 04 service to the entity. The overall +$t +!,c cc m1c tiu bEng vi(c +nh gi v activities that are performed within an c'i ti-n m6t cch h( th)ng v chuMn tLc tnh organization aimed at adding value by hi(u l:c c5a quy trnh qu'n tr#, ki*m sot v evaluating systems of internal control qu'n lC r5i ro and providing advice. The scope of internal audit ranges from internal L m6t b6 ph>n trong h( th)ng ki*m sot control to risk management t corporate n6i b6 c5a m6t +"n v#, c ch8c n.ng ki*m governance. tra, +nh gi tnh ph h,p, hi(u qu', s: tun th5 php lu>t v cc quy +#nh c5a h( th)ng k- ton v h( th)ng ki*m sot n6i b6 c5a +"n v# + Internal auditor Those engaged as-in house employees Ki$m ton L thnh vin0 n6i b6 c5a doanh nghi(p, of an organisation who are responsible vin nAi bA. ng!=i ch#u trch nhi(m +nh gi +6c l>p cc for providing 0 independent audit ho$t +6ng c5a doanh nghi(p0 appraisals of the organization's activities Internal control Management's philosophy and Ki$m sot nAi L cc qui +#nh v cc th5 t1c ki*m sot do Decision operating style and all the policies and bA +"n v# +!,c ki*m ton xy d:ng v p d1ng 143/2001/Q!procedures adopted by management to nhEm b'o +'m cho +"n v# tun th5 php lu>t BTC/standard assist in achieving the entity's v cc qui +#nh, +* ki*m tra, ki*m sot, ng.n 400/article 10 objectives, including the safeguarding ngAa v pht hi(n gian l>n, sai st; +* l>p of assets, the prevention and detection bo co ti chnh trung th:c v h,p lC; nhEm of fraud and error, the accuracy and b'o v(, qu'n lC v s0 d1ng c hi(u qu' ti completeness of the accounting records, s'n c5a +"n v#. H( th)ng ki*m sot n6i b6 and the timely preparation of reliable bao g3m mi tr!=ng ki*m sot, h( th)ng kfinancial information. ton v cc th5 t1c ki*m sot. Internal control Lists that can enumerate the types B#n cu hLi B'n li(t k danh sch cc lo$i sai st ti9m evaluation of potential misstatement that could ki$m tra 4nh tng c th* x'y ra trong m6t c" sG dFn li(u checklists occur in specific assertions gi ki$m sot c1 th* no +. nAi bA.

27

Internal control Where there are discrepancies in problems the internal system that result in control failures

Cc v0n 47 V?n +9 x'y ra khi t3n t$i s: khng nh?t ki$m sot nAi qun trong h( th)ng n6i b6 v dFn +-n s:00 bA. th?t b$i trong ki*m sot. M6t danh m1c cc cu hNi v9 chnh sch k- ton v ki*m sot c&ng nh! cc quy trnh m ki*m ton th?y c;n thi-t +* ng.n ch/n cc sai st trDng y-u trong cc bo co ti chnh. B'ng +!,c chuMn b# sWn +* ghi chp cc m 0 t' v s) l!,ng +!,c ki*m 0k c5a hng t3n kho. B'ng k hng t3n kho th!=ng +!,c +nh s) tr!2c.

Internal control A series of questions about accounting B#ng cu hLi questionnaire and control policies and procedures that ki$m sot nAi the auditor considers necessary to bA. prevent material misstatements in the financial statements Inventory count Pre-prepared sheets for recording B#ng k hng sheets inventory description and quantity as t@n kho. counted. These are usually prenumbered. Inventory master file.

A computer file containing details of S-0 t-ng h.p T>p d4 li(u trong my tnh l!u tr4 cc chi invetory items, their movement and the hng t@n kho. ti-t v9 s: bi-n +6ng v s) l!,ng cn l$i c5a quantity on hand cc h$ng m1c hng t3n kho. Subsidiary ledger recording individual investment in shares and debentures. Entries show purchases and sales, the cost of each bundle purchases, and the quantity and cost of the balance owed An irregularity overstating the cash balance by intentionally 0 recording a bank transfer as a deposit in the receiving bank while failing to show a deduction from the bank account on which the transfer cheque is drawn.
0 S- chi ti)t

Investment register

cc kho#n 4Eu t1

S7 k- ton chi ti-t ghi chp cc h$ng m1c +;u t! c nhn vo c7 phi-u v tri phi-u.Cc m1c trnh by cc nghi(p v1 mua, bn, chi ph c5a mIi nghi(p v1 mua v s) l!,ng v chi ph c5a s) d! cn n,.

Kiting

Vi)t chi phi)u S: phng +$i khng h,p l( s) d! ti9n m/t khng ti7n bEng cch0 c) C ghi nh>n chuy*n kho'n0 l b#o ch9ng. kho'n ti9n g0i0 trong ngn hng nh>n0 ti9n trong khi l$i khng0 trA ti9n0 tA ti kho'n G ngn hng0 khi vi-t chi phi-u 0 B'ng n6i dung, t7ng h,p m6t s) cng vi(c c;n +!,c th:c hi(n, hon thnh. not sure

Lead schedule

A summary working sheet that is D=n l?ch. supported by individual working papers

28

Limited assurance engagement. Low - balling

An engagement that provides only a limited level of confidence in the reliability of the subject matter.

H.p 4@ng b#o M6t h,p +3ng ki*m ton m ch< cung c?p 4#m h5n m9c m6t m8c +6 +'m b'o nh?t +#nh cho s: +ng tin c>y c5a v?n +9 lin quan. !Jt ph th0p Hnh +6ng +#nh gi c:c th?p cho m6t d#ch Decision v1 ki*m ton nhEm thLng gi th;u v sau 87/2005/Q!+ sH dng cc hnh th8c khc +* b lI. BTC/ point 0229 Ph1;ng php M6t0 chi-n l!,c ki*m ton d:a trn gi' 4nh gi th0p +#nhr 0 Eng r5i ro ki*m sot c5a m6t c" sG r>i dFn li(u0 G m8c trung bnhho 0 /c th?p. ro ki$m sot. Qu#n tr?. L m t' cng vi(c c5a nh4ng ng!=i +!,c giao nhi(m v1 ch< +$o, +i9u hnh, gim st, ki*m sot m6t lOnh v:c no + ho/c ch< +$o, +i9u hnh m6t php nhn. Ban lnh +$o ch#u trch nhi(m +'m b'o cho +"n v# ho$t +6ng c hi(u qu', +$t +!,c m1c tiu m +"n v# +9 ra, gim st ho/c cung c?p bo co ti chnh cho cc bn h4u quan. Th1 qu#n l2. Th! qu'n lC +9 c>p +-n nh4ng +i*m thi-u st c;n khLc ph1c v C ki-n +9 xu?t c5a ki*m ton vin v cng ty ki*m ton nhEm c'i ti-n h( th)ng k- ton v h( th)ng ki*m sot n6i b6 Th1 gi#i trnh Th! gi'i trnh c5a ban gim +)c g0i t2i c>a ban gim ki*mton 0 vin. 4,c. Decision 101/2005/Q!BTC/standard 260/article 5

A practice whereby a bid price of an audit service is quoted at an unreasonably low level so as to win the bid, with any "losses" subsequently recovered through other means Lower assessed An audit strategy based on the level of assumption that control risk is medium control risk to low for an assertion approach Management The individuals who control and are responsible for the resources invested within an entity.

Management letter.

Management representation letter.

A letter written to the management of an entity by an auditor. It contains recommendations for improving the efficiency and effectiveness of significant matters that were noticed during the course of an audit A letter that contains representations from management to an auditor

Decision 03/2005/Q!BTC/standard 1000/appendix 1

29

Materiality

In respect of accounting information, an omission, misstatement or nondisclosure that could adversely affect the decisions of the user in given circumstances

Tr6ng y)u.

Mathematical evidence

Audit evidence that results from recalculations by the auditor and comparisons of those results with client calculations.

B8ng ch9ng ton h6c.

L thu>t ng4 dng +* th* hi(n t;m quan Decision trDng c5a m6t thng tin ho/c m6t s) li(u 143/2001/Q!trong bo co ti chnh. BTC/ standard Thng tin +!,c coi l trDng y-u c nghOa l 400 /article 9 n-u thi-u thng tin + hay thng tin + thi-u chnh xc th sH 'nh h!Gng +-n cc quy-t +#nh c5a ng!=i s0 d1ng bo co ti chnh. M8c +6 trDng y-u tu% thu6c vo t;m quan trDng c5a thng tin hay c5a sai st +!,c +nh gi trong hon c'nh c1 th*. Tnh trDng y-u c5a thng tin ph'i +!,c xem xt c' trn tiu chuMn +#nh l!,ng v +#nh tnh. L bEng ch8ng ki*m ton c +!,c d:a vo vi(c tnh ton l$i cc s) li(u +!,c cung c?p bGi khch hng v so snh v2i k-t qu' tnh ton c5a chnh khch hng +.

Mean - per unit method Modified auditor's report Monitoring

A sampling method where the amount Ph1;ng php M6t ph!"ng php l?y mFu m s) l!,ng being estimated is the average value of bnh qun +!,c !2c tnh d:a trn gi tr# trung bnh each sampling unit 4;n v?. c5a mIi +"n v# mFu. Issued when the audit opinion is qualified or when it is apporopriate for the auditor to draw attention to or emphasise a matter that is relevant to users In relation to controls, involves assessing the design and operation of controls on a timely basis and taking necessary corrective action Written comments concerning the auditor's consideration of the internal control structure. Bo co ki$m ton 4 41.c sHa 4-i. Theo di. @!,c +!a ra khi ki*m ton vin +!a ra C ki-n ch?p nh>n tAng ph;n v th?y thch h,p +* thm +o$n l!u C v9 m6t v?n +9 ph h,p cho ng!=i s0 d1ng. Gim st trong ki*m sot l vi(c +nh gi 0 thi-t k- v0 th:c hi(n0 ho$t +6ng ki*m sot0 k#p th=i v +!a ra gi'i php +i9u ch<nh c;n thi-t.

Narrative memoradum

Bin b#n Nh4ng gp C d!2i hnh th8c v.n b'n c5a t13ng trnh. ki*m ton vin v9 c" c?u ki*m sot n6i b6.

30

Nature of substantive procedures

Negligence

The type and effectiveness of the auditing procedures 0 to be performed. The types of substantive procedure are analytical procedures, tests of detail of transactions and test of details of balances. Not exercising due care

NAi dung c>a thH nghi&m c; b#n. Thi)u ch 2

Lo$i hnh v tnh hi(u qu' c5a th5 t1c ki*m ton +!,c ti-n hnh.Th0 nghi(m c" b'n g3m quy trnh phn tch, cc ki*m tra chi ti-t cc nghi(p v1, s) d!0 cc ti kho'n Thi-u n.ng l:c chuyn mn v tnh th>n trDng

Networking firm A firm that is associated or affiliated with another firm under the same management or ownership

Non-attest service

Non-audit services

L cc t7 ch8c ch#u s: ki*m sot, quy9n sG Decision h4u ho/c qu'n l chung c5a m6t cng ty 87/2005/Q!ho/c b?t c8 t7 ch8c no m bn th8 ba dS BTC/article 28 dng k-t lu>n +!,c + l m6t ph;n c5a cng ty trong ph$m vi qu)c gia ho/c qu)c t-, nh! cng ty mU, cng ty, chi nhnh, v.n phng +$i di(n A service that does not result in the D?ch v: L d#ch v1 m ki*m ton vin hnh ngh9 expression of an opinion, negative khng ph#i khng c;n +!a ra C ki-n, +'m b'o ph5 +#nh, assurance, a summary of findings, or d?ch v: ch9ng tm 0 tLt nh4ng pht hi(n hay b?t k hnh th8c any other form of assurance by the th+c +'m b'o no khc. Ph;n l2n cc d#ch v1 public accountant. Most non-attest khng ph'i d#ch v1 ch8ng th:c +9u c lin services are those provided in respect quan +-n d#ch v1 k- ton, thu-, t! v?n qu'n of traditional accounting and taxation, l, ph s'n v khi ph1c kinh doanh management consulting or advice, and insolvency and business recovery Services that are not audit related. D?ch v: phi 0 L cc d#ch v1 khng lin quan +-n cng Examples are accounting, management ki$m ton vi(c ki*m ton nh! k- ton, t! v?n qu'n lC, consulting and insolvency and business ph s'n v khi ph1c kinh doanh recovery The component of audit risk that is not R>i ro ngoi due to examining only a portion of the l0y m=u data, such as through the use of inappropriate procedures or the misinterpretation of evidence L r5i ro khi ki*m ton vin +i +-n m6t k-t Decision lu>n sai v cc nguyn nhn khng lin quan 143/2001/Q!+-n cT mFu. V d1: ki*m ton vin c th* s0 BTC/Standard d1ng th5 t1c ki*m ton khng thch h,p hay 530, article 9 ki*m ton vin hi*u sai bEng ch8ng v khng nh>n di(n +!,c sai st.

M5ng l1(i cng ty

Non-sampling risk

31

Non -statistical The use of judgement to determine L0y m=u phi L ph!"ng php l?y mFu khng c m6t ho/c Decision sampling sample size and to0 interpret the results th,ng k c' hai +/c +i*m sau: a) Cc ph;n t0 +!,c 143/2001/Q!l:a chDn ngFu nhin vo mFu; b) S0 d1ng lC BTC/Standard thuy-t xc su?t thng k +* +nh gi k-t qu' 530, article 11 mFu, bao g3m c' vi(c +#nh l!,ng r5i ro l?y mFu. Observation The act of watching or witnessing the Quan st L vi(c theo di m6t hi(n t!,ng, m6t chu Decision performance of some activity or trnh ho/c m6t th5 t1c do ng!=i khc th:c 219/2000/Q!process hi(n (V d1: Ki*m ton vin quan st vi(c BTC/Standard ki*m k th:c t- ho/c quan st cc th5 t1c 500, article 22 ki*m sot do +"n v# ti-n hnh...). Occurrence An assertion relating to financial Pht sinh M6t nghi(p v1 hay m6t s: ki(n + ghi chp Decision information that transactions did occur th ph'i + x'y ra v c lin quan +-n +"n v# 219/2000/Q!trong th=i k% xem xt; BTC/Standard 500, article 14 Operating The extent to which laid-down control effectiveness of procedures are being complied with the control procedures Operational auditing Hi&u qu# ho5t Ph$m vi m cc qui trnh ki*m sot + +!,c 4Ang c>a qui +!a ra +!,c tun th5 trnh ki$m sot M6t qu trnh c tnh h( th)ng +nh gi s: hi(u qu', hi(u n.ng c5a m6t t7 ch8c v tnh ti-t ki(m trong v>n hnh c5a n d!2i s: ki*m sot c5a ban lnh +$o, sau + bo co +-n ng!=i c lin quan k-t qu' cu6c +nh gi Hnh +6ng m khch hng m=i cng ty ki*m ton khc +!a ra C ki-n v9 s: b?t +3ng gi4a ban qu'n tr# c5a khch hng v2i ki*m ton vin v9 h$ch ton k- ton. Hnh +6ng ny c th* gy p l:c cho ki*m ton vin ph'i +!a ra bo co ch?p nh>n ton ph;n +* khNi m?t khch hng

Opinion shopping

A systematic process of evaluating an Ki$m ton organisation's effectiveness, efficiency ho5t 4Ang and economy of operations under management's control, and then reporting to appropriate persons the results of the evaluation A practice whereby an audit client invites another firm of accountants to offer a second opinion on a disagreement the client's management has with the auditor over a proposed accounting treatment. This action can pressure the auditor to issue an unqualified auditor's report so as not to lose the audit to the second firm

32

Oral evidence

Responses to oral enquiries of officers B8ng ch9ng0 L tr' l=i c5a vin ch8c v nh4ng nhn vin and key employees of the entity l3i ni ch5 ch)t c5a +"n v# cho nh4ng cu hNi bEng l=i

Organisational Ensure segregation of duties within the Ki$m sot t- @'m b'o s: phn +#nh trch nhi(m trong n6i controls information technology (IT) and ch9c b6 phng cng ngh( thng tin v gi4a phng between IT and user departments cng ngh( thng tin v2i cc phng0 ch8c n.ng khc Overall review An overall review of financial statements so as to arrive at the conclusion that the financial information as a whole is consistent with the auditor's knowledge of the entity's business Parallel 0 A method of testing controls that simulation simulates the entity's processing of real data. Actual entity data are processed using auditor-controlled software. The output is then compared with the entity's actual output. Partner A member of a partnership of public practitioners. A partner has the overall and final responsibility of an audit engagement Pay-slips Sot xt t-ng Vi(c +nh gi t7ng th* bo co ti chnh +* th$ +i +-n k-t lu>n rEng v9 m/t t7ng th*, thng tin ti chnh ph h,p v2i hi*u bi-t c5a ki*m ton vin v9 tnh hnh kinh doanh c5a +"n v#.

M phLng L bi(n php th0 nghi(m m phNng qu t1;ng 41;ng trnh x0 l d4 li(u th:c t- c5a +"n v#. D4 li(u th:c t- c5a +"n v# +!,c x0 l bEng ph;n mm ki*m sot c5a ki*m ton. Ph;n d4 li(u +;u ra ny sau + +!,c so snh v2i d4 li(u +;u ra th:c t- c5a +"n v# Gim 4,c L ng!=i +$i di(n theo php lu>t cao nh?t (ng13i 49ng c5a cng ty ki*m ton v ch#u trch nhi(m 4Eu) cng ty cu)i cng +)i v2i cng vi(c ki*m ton. ki$m ton),Partner Forms that indicate the make-up of an Phi)u tr# Bi*u mFu trn + ghi s) ti9n ng!=i lao +6ng employees'current 0 0 period's net pay, and l1;ng nh>n +!,c trong th=i k hi(n t$i v ch< r that show the hours worked, gross t7ng s) gi= lm vi(c, t7ng s) l!"ng v cc wages and the payroll deductions kho'n gi'm trA S7 k- ton chi ti-t ghi chp vi(c tnh ton v s) ti9n l!"ng tr' cho mIi ng!=i lao +6ng

Decision 28/2003/Q!BTC/standard 220/article 5

Payroll register A journal recording details of the B#ng0 l1;ng calculation and amount of wages paid to each employee

33

Payroll A computer file recording details of transactions file wage payments paid to employees.

0 S- t-ng h.p

ti7n l1;ng

T(p tin ghi chp chi ti-t s) ti9n l!"ng + tr' cho ng!=i lao +6ng

Performance audit

Performance reviews

An independent and systematic examination of the organisation, program or function for the purpose of (1) forming an opinion on whether it is being managed in an economical, efficient and effective manner, and (2) determining whether the internal procedures for promoting and monitoring economy, efficiency and effectiveness are adequate Management review and analysis of reports that summarise the detail of account balances, such as reports of sales activity, and of actual performance compared with budgets, forecasts or previous period amounts.

Ki$m ton ho5t 4Ang

M6t qu trnh ki*m tra +6c l>p v c h( th)ng m6t doanh nghi(p no + nhEm m1c +ch (1) hnh thnh C ki-n rEng doanh nghi(p + +ang +!,c qu'n l m6t cch ti-t ki(m, hi(u qu' v hi(u n.ng v (2) xc +#nh rEng qu trnh thc +My v gim st tnh kinh t-, s: hi(u qu' v hi(u n.ng n6i b6 l ph h,p. Decision 143/2001/Q!BTC/standard 400, art 26

Permanent file A permanent file that contains data useful in an audit on many future engagements

Th> t:c ki$m Cc th5 t1c ki*m sot bao g3m: L>p, ki*m sot tra, so snh v ph duy(t cc s) li(u, ti li(u lin quan +-n +"n v#; Ki*m tra tnh chnh xc c5a cc s) li(u tnh ton; Ki*m tra ch!"ng trnh 8ng d1ng v mi tr!=ng tin hDc; Ki*m tra s) li(u gi4a s7 k- ton t7ng h,p v s7 k- ton chi ti-t; Ki*m tra v ph duy(t cc ch8ng tA k- ton, ti li(u k- ton; @)i chi-u s) li(u n6i b6 v2i bn ngoi; So snh, +)i chi-u k-t qu' ki*m k th:c t- v2i s) li(u trn s7 k- ton; Gi2i h$n vi(c ti-p c>n tr:c ti-p v2i cc ti s'n v ti li(u kton;Phn tch, so snh gi4a s) li(u th:c tv2i d: ton, k- ho$ch. H@ s; ki$m T(p tin c) +#nh bao g3m cc d4 li(u h4u ch ton chung cho nhi9u cu6c ki*m ton v9 sau

Decision 120/1999/Q 00 !BTC/Standard 0 230, article 130

34

Personnel data A computer file containing details of H@ s; dK li&u T(p tin trn my tnh ch8a +:ng d4 li(u v9 master file employees, such as wage rate and date g,c v7 nhn nhn vin nh! b>c l!"ng, ngy bLt +;u lm of hiring vin vi(c Personnel file A record maintained by the personnel H@ s; nhn department recording details of vin employees such as wage rate and date of hiring Controls that limit access to assets and Ki$m sot0 important records. B'n ghi chp l!u l$i bGi phng nhn s: trong + c cc chi ti-t v9 nhn vin nh! b>c l!"ng v ngy0 tuy*n d1ng H( th)ng ki*m sot h$n ch- vi(c s0 d1ng ti s'n hay truy c>p vo nh4ng s) li(u quan trDng BEng ch8ng ki*m ton c +!,c do ki*m tra th:c t- hay ki*m tra ti s'n h4u hnh

Physical controls

Physical evidence

Audit evidence obtained from physical B8ng ch9ng examination or inspection of tangibles th+c t) assets A detection risk that is considered tolerable

Planned detection risk

R>i ro pht L r5i ro pht hi(n G m8c ch?p nh>n +!,c hi&n 1(c tnh

Planning materiality

Materiality determined during the planning phase of the audit

M9c tr6ng M8c trDng y-u +!,c xc +#nh trong giai y)u 1(c tnh +o$n l>p k- ho$ch cho cu6c ki*m ton

Plant register

A record of plant and equipment items S- khai bo containing such information as ti s#n c, description, supplier, serial number and 4?nh location, as well as cost and depreciation charges that reconcile with the control account in the general ledger

S7 ghi chp0 ti s'n c) +#nh nh!0 nh x!Gng, my mc thi-t b# bao g3m nh4ng thng tin nh! m 0 t' ti s'n, tn nh cung c?p, s) seri, v# tr, nguyn gi,0 m8c kh?u hao +* +)i chi-u v2i ti kho'n0 s7 ci

35

Population

Transactions in a transaction class or items making up an account balance that the auditor believes to be consistent as far as the likelihood of deviation or misstatement of the type being sought is concerned

Predecessor Auditor

Preliminary assessment of control risk

Presentation and disclosure Privity of contract

L ton b6 d4 li(u m tA + ki*m ton vin Decision l?y mFu +* c th* +i +-n m6t k-t lu>n. V 143/2001/Q!d1, t?t c' cc ph;n t0 trong m6t s) d! ti BTC/Standard kho'n hay m6t lo$i nghi(p v1 c?u thnh m6t 530, article 7 t7ng th*. M6t t7ng th* c th* +!,c chia thnh cc nhm ho/c cc t7ng th* con v mIi nhm +!,c ki*m tra ring. Trong tr!=ng h,p ny, thu>t ng4 t7ng th* bao hm c' thu>t ng4 nhm. An auditor who has since been replaced Ki$m ton L ki*m ton vin hnh ngh9 + th:c hi(n Decision by a current auditor vin ti7n h,p +3ng ki*m 87/2005/Q!nhi&m ton ho/c + th:c hi(n cng vi(c k- ton, BTC, Code of thu-, t! v?n cho khch hng k tr!2c ho/c ethics for cc k tr!2c. professional accountants and auditors, General provisions, point 22 An assessment for the purpose of !nh gi ban L nh4ng +nh gi s" b6 v9 tnh hi(u qu' obtaining a reasonable 4Eu v7 r>i ro c5a h( th)ng ki*m sot n6i b6 c5a +"n v# expectation as to the effectiveness of ki$m sot +!,c ki*m ton, m tA + ch!"ng trnh ki*m controls such that the detailed audit ton chi ti-t sH +!,c thi-t l>p d:a trn cc program can be designed under the chi-n l!,c ki*m ton ph h,p. appropriate audit strategy. An assertion that components of Trnh by v M6t tiu chuMn c5a c" sG dFn li(u c5a bo Decision financial statements are cng b, co ti chnh trong + cc kho'n m1c +!,c 219/2000/Q!presented and disclosed in accordance phn lo$i, diSn +$t v cng b) ph h,p v2i BTC, Standard with a financial reporting framework. chuMn m:c v ch- +6 k- ton hi(n hnh 500, point 14g (ho/c +!,c ch?p nh>n) The contractual relationship that exists Quan h& h.p L m)i quan h( t3n t$i gi4a cc bn tham between two or more 4@ng gia vo h,p +3ng. contracting parties.

T-ng th$

36

Professional ethics

Professional indemnity insurance Professional judgment

The written code of ethics put forward Chu*n m+c L v.n b'n quy +#nh cc nguyn tLc, n6i Decision by a professional 45o 49c dung v h!2ng dFn p d1ng cc tiu chuMn 87/2005/Q!body. ngh7 nghi&p +$o +8c ngh9 nghi(p c5a ki*m ton vin BTC, Code of hnh ngh9 v ng!=i lm ki*m ton trong cc ethics for doanh nghi(p v t7 ch8c nhEm +'m b'o +$t professional +!,c nh4ng tiu chuMn cao nh?t v9 trnh +6 accountants and chuyn mn, v9 m8c +6 ho$t +6ng v +p auditors, 8ng +!,c s: quan tm ngy cng cao c5a General cng chng. provisions, point 1 An insurance taken by a professional B#o hi$m L lo$i hnh b'o hi*m trong + ng!=i cung person to indemnify the assured against (trch nhi&m) c?p d#ch v1 loss resulting from the proven ngh7 nghi&p chuyn nghi(p sH ph'i b3i th!=ng nh4ng negligence of the professional person. thi(t h$i gy ra bGi s: b?t cMn c5a hD. L s: v>n d1ng cc kR n.ng, ki-n th8c v kinh nghi(m ph h,p v9 ti chnh k- ton, ki*m ton, chuMn m:c +$o +8c ngh9 nghi(p, php lu>t v cc quy +#nh c lin quan +* +!a ra quy-t +#nh v9 cc hnh +6ng ph h,p trong b)i c'nh c5a cu6c ki*m ton. L l!,ng sai st trong t7ng th* +!,c !2c Decision tnh d:a trn t< l( 143/2001/Q!sai st pht hi(n +!,c trong mFu ki*m ton. BTC, Standard 530, point 51 L ki*m ton vin hnh ngh9 (ki*m ton Decision vin hi(n th=i ho/c 87/2005/Q!ki*m ton vin ti9n nhi(m) +!,c khch hng BTC, Code of m=i th:c hi(n cc d#ch v1 lin quan +-n ethics for ki*m ton, k- ton, thu-, t! v?n ho/c cc professional d#ch v1 t!"ng t:, ho/c ng!=i +!,c yu c;u accountants and cung c?p d#ch v1 t! v?n nhEm muc +ch +p auditors, 8ng yu c;u c5a khch hng. General provisions, point 22.

An exercise of an opinion by an Xt 4on accountant or auditor that is chuyn mn based on the assumption that he or she has the professional skills and expertise to exercise due professional care and to be objective in providing advice or opinions on matters presented to him or her. Projected error Population error based on the Sai st d+ projection of error rate in the tnh trong sample tested. t-ng th$ Proposed auditor The incoming auditor who is appointed Ki$m ton to replace the vin 41.c existing auditor. m3i

37

Purchases cutoff test

A substantive test of details of ThH nghi&m transactions designed to ki$m tra obtain reasonable assurance that tnh 4ng k purchase transactions occurring near c>a giao d?ch the end of the reporting period are mua hng recorded in accounting period in which the transactions occurred and that the corresponding entries for inventories are made in the same period. Qualified audit Expressed when the auditor concludes / ki)n ch0p opinion that an unqualified nh%n tFng opinion cannot be expressed but that phEn the effect of any scope limitation, disagreements with those charged with governance, or a conflict between applicable financial reporting frameworks is material but not extreme. Random selection Selection of sampling units from a population by the use of random number tables or computergenerated random numbers. Ch6n m=u ng=u nhin

L th0 nghi(m c" b'n v9 chi ti-t c5a giao d#ch +* +$t +!,c m8c +'m b'o h,p lC rEng cc giao d#ch mua hng pht sinh vo g;n cu)i nin +6 k- ton +!,c ghi nh>n t$i th=i k m giao d#ch pht sinh v cc bt ton hng t3n kho t!"ng 8ng c&ng +!,c ghi nh>n t$i cng m6t th=i k. L C ki-n +!,c +!a ra trong tr!=ng h,p Decision ki*m ton vin cho rEng khng th* +!a ra C 120/1999/Q!ki-n ch?p nh>n ton ph;n, v nh4ng ph;n BTC, Standard khng ch?p nh>n do khng +3ng C v2i Gim 700, point 39, +)c hay do cng vi(c ki*m ton b# gi2i h$n, 41 l quan trDng nh!ng khng lin quan t2i m6t s) l!,ng l2n cc kho'n m1c t2i m8c c th* dFn +-n C ki-n tA ch)i, ho/c C ki-n khng ch?p nh>n. L vi(c l:a chDn cc ph;n t0 c5a mFu tA m6t t7ng th* bEng cch s0 d1ng b'ng s) ngFu nhin ho/c m6t ch!"ng trnh chDn s) ngFu nhin.

Reasonable assurance engagement

Performed to provide a reasonable level D?ch v: 4#m L d#ch v1 m trong + ki*m ton vin hnh Decision of confidence in b#o ngh9 +!a ra C 87/2005/Q!the subject matter. ki-n k-t lu>n nhEm nng cao m8c +6 tin c>y BTC,Code of c5a ng!=i s0 d1ng thng tin. ethics for professional ccountants and auditors, General provisions, point 15

38

Reasonable care Professionalism or due professional NBng l+c and skill care and competence chuyn mn reasonably expected of a professional v tnh th%n person (as opposed to a layperson) tr6ng under the circumstances of the case. The professional is expected to have considered all facts (and their reliability) to arrive at a responsible and well-informed opinion on the matter. Recalculation

Ki*m ton vin ph'i th:c hi(n cng vi(c ki*m ton v2i +;y +5 n.ng l:c chuyn mn c;n thi-t, v2i s: th>n trDng cao nh?t v tinh th;n lm vi(c chuyn c;n. Ki*m ton vin c nhi(m v1 duy tr, c>p nh>t v nng cao ki-n th8c trong ho$t +6ng th:c tiSn, trong mi tr!=ng php lC v nh4ng ti-n b6 kR thu>t +* +p 8ng yu c;u cng vi(c.

Decision 87/2005/Q!BTC,Code of ethics for professional accountants and auditors, General provisions, point 39

Checking the mathematical accuracy of Tnh ton l5i L vi(c ki*m tra tnh chnh xc v9 m/t ton records and hDc c5a s) li(u trn ch8ng tA, s7 k- ton, documents. bo co ti chnh v cc ti li(u lin quan khc. The main accounting records of an entity, in the form of journals and ledgers. S- sch k) ton L nh4ng ghi chp k- ton quan trDng c5a +"n v# d!2i d$ng s7 chi ti-t v s7 ci.

Records

Regulation

The framework that provides the Php lu%t v support and control the cc quy market with the authority of either the 4?nh government or the profession.

L nh4ng v.n b'n quy ph$m php lu>t do Decision cc c" quan c 219/2000/Q!thMm quy9n ban hnh (Qu)c h6i, Py ban BTC, Standard Th!=ng v1 Qu)c h6i, Ch5 t#ch n!2c, Chnh 250, point 6 ph5, Th5 t!2ng Chnh ph5, cc B6 v c" quan ngang B6, c" quan thu6c Chnh ph5; v.n b'n lin t#ch c5a cc c" quan, t7 ch8c c thMm quy9n, H6i +3ng Nhn dn v Py ban Nhn dn cc c?p, v cc c" quan khc theo quy +#nh c5a php lu>t); cc v.n b'n do c?p trn, h6i ngh9 nghi(p, H6i +3ng qu'n tr# v Gim +)c quy +#nh khng tri v2i php lu>t, lin quan +-n ho$t +6ng s'n xu?t, kinh doanh v qu'n lC kinh t-, ti chnh k-, ton thu6c lOnh v:c c5a +"n v#.

39

Related party transactions

Transactions consummated by related Giao d?ch parties (that is, by giKa cc bn parties who are involved in an lin quan economic action or the event to the extend that 'arm's length' bargaining of terms is not possible). Re-performance Recalculating or reconciling financial Tnh ton data. This process also involves recording certain aspects of the processing of selected transactions. Representation A request of the entity's lawyers to Th1 yu cEu letter to confirm the chuyn gia a lawyer reasonableness of management's t1 v0n php estimates of the likely financial lu%t c>a 4;n settlement of legal matters and the v? completeness of legal matters identified by management. Review-level engagement

L vi(c chuy*n giao cc ngu3n l:c hay cc Decision nghOa v1 gi4a cc bn lin quan, khng xt 195/2003/Q!+-n vi(c c tnh gi hay khng. BTC, Standard 550, point 6

L vi(c ki*m tra tnh chnh xc v9 m/t ton Decision hDc c5a s) li(u trn ch8ng tA, s7 k- ton, 219/2000/Q!bo co ti chnh v cc ti li(u lin quan BTC, Standard khc hay vi(c th:c hi(n cc tnh ton +6c 500, point 25 l>p c5a ki*m ton vin. L th! do +"n v# +!,c ki*m ton k v do Decision ki*m ton vin g0i +i trong + yu c;u 28/2003/Q!chuyn gia t! v?n php lu>t c5a +"n v# xc BTC, Standard nh>n tnh h,p lC trong cc +nh gi c5a 501, point 39 Gim +)c +"n v# +!,c ki*m ton v9 h>u qu' c5a cc v1 ki(n t1ng, tranh ch?p v !2c tnh 'nh h!Gng v9 m/t ti chnh c5a v1 vi(c +, k* c' cc chi ph php lC c lin quan. An assurance service in which an Cng tc sot L cng tc gip cho ki*m ton vin v Decision auditor provides a xt bo cng ty ki*m ton 195/2003/Q!moderate level of assurance. It is a co ti chnh d:a trn c" sG cc th5 t1c sot xt +* +!a ra BTC, Standard lower level of assurance than that C ki-n k-t lu>n l khng (ho/c c) pht hi(n 910, point 3. provided in an audit. The outcome of a ra s: ki(n trong y-u no lm cho ki*m ton review-level engagement is a statement vin cho rEng bo co ti chnh khng +!,c of negative assurance. l>p ph h,p v2i ChuMn m:c k- Vi(t Nam (ho/c chuMn m:c k- ton +!,c ch?p nh>n), xt trn mDi kha c$nh trDng y-u (+'m b'o vAa ph'i). Cng tc sot xt bo co ti chnh khng cung c?p t?t c' cc bEng ch8ng ki*m ton v c&ng khng +!a ra s: +'m b'o h,p lC nh! m6t cu6c ki*m ton bo co ti chnh.

40

Rights and obligations

M6t tiu chuMn c5a c" sG dFn li(u c5a bo co ti chnh trong + m6t ti s'n hay m6t kho'n n, ph'n nh trn bo co ti chnh +"n v# ph'i c quy9n sG h4u ho/c ph'i c trch nhi(m hon tr' t$i th=i +i*m l>p bo co. Risk assessment A process whereby management !nh gi r>i L qu trnh ban qu'n tr# nh>n +#nh cc r5i identifies risks pertaining to the entity ro ro lin quan +-n doanh nghi(p +* th:c hi(n in order to put effective controls into cc bi(n php ki*m sot hi(u qu' nhEm0 operation to control those risks ki*m sot r5i ro. 0 Risk management The entire culture, process and system Ki$m sot r>i L t7ng th* bao g3m v.n ha doanh nghi(p, establishes to manage opportunities and ro cc quy trnh v h( th)ng +!,c thi-t l>p +* minimize or control risks t>n d1ng t)i +a c" h6i v gi'm thi*u ho/c ki*m sot r5i ro. R>i ro ch0p nh%n sai R5i ro pht sinh khi mFu ki*m ton trong ki*m tra chi ti-t cc s) d! ch< ra k-t lu>n rEng s) d! ti kho'n + ghi0 khng c sai ph$m trDng y-u trong khi th:c t- c sai ph$m trDng y-u. R>i ro lo5i bL R5i ro pht sinh khi mFu ki*m ton trong sai ki*m tra c" b'n v9 chi ti-t cc s) d! ch< ra k-t lu>n rEng s) d! ti kho'n + ghi l c sai ph$m trDng y-u trong khi th:c t- khng c sai ph$m trDng y-u. R>i ro v7 4A R5i ro khi +nh gi r5i ro ki*m sot qu th?p tin c%y qu cao R>i ro v7 4A R5i ro khi +nh gi r5i ro ki*m sot qu cao tin c%y qu th0p

An assertion that entity holds or controls the rights to assets and that liabilities are the obligations of the entity

Quy7n v nghMa v:

Decision 219/2000/Q!BTC, Standard 500, point 14b.

Risk of incorrect Risk that arises when the sample in a acceptance substantive test of details supports the conclusion that the recorded account balance is not materially misstated when it is materially misstated Risk of incorrect Risk that arises when the sample in a rejection substantive test of details supports the conclusion that the recorded account balance is materially misstated when it is not materially misstated Risk of The risk of assessing control risk as overreliance being too low

Risk of underreliance

The risk of assessing control risk as being too high

41

Roll-forward testing

Analytical procedures or tests of details Ki$m tra of transactions performed on cuAn ti)n transactions that occur between the date of testing (when testing is done before the end of the year) and the end of the reporting period Sales cut-off test A substantial procedures designed to ThH nghi&m obtain reasonable assurance that sales ki$m tra and accounts receivable are recorded in tnh 4ng k the accounting period in which the c>a giao d?ch transactions occurred, and that the bn hng corresponding entries for inventories and cost of sales are made in the same period Sales journal A journal listing completed sales S- nh%t k2 transactions bn hng

L quy trnh phn tch ho/c ki*m tra chi ti-t not sure cc giao d#ch pht sinh gi4a ngy ki*m tra (ki*m tra +!,c ti-n hnh tr!2c khi k-t thc nin +6) v cu)i th=i k% bo co. L th0 nghi(m c" b'n +!,c thi-t l>p +* +'m b'o h,p lC rEng doanh thu bn hng0 v cc kho'n ph'i thu +!,c ghi trong th=i k% kton m cc giao d#ch pht sinh; v cc bt ton v9 hng t3n kho v0 gi v)n 0hng bn t!"ng 8ng +!,c th:c hi(n trong cng k%. S7 k- ton li(t k cc giao d#ch bn hng + pht sinh.

Sales return cut- A substantial procedures designed to off test obtain reasonable assurance that sales returns are accounted for in the period in which the original sales transaction occurred Sales A computer file listing details of all transactions file sales transactions

ThH nghi&m ki$m tra tnh 4ng kG c>a hng bn tr# l5i 0 S- t-ng h.p bn hng

L th0 nghi(m c" b'n +!,c thi-t l>p +* +'m b'o h,p lC rEng hng tr' l$i +!,c ghi nh>n trong th=i k% giao d#ch bn hng ban +;u th:c s: pht sinh. D4 li(u my tnh li(t k chi ti-t cc giao d#ch bn hng + pht sinh.

Sampling interval

The interval between successive sampling units selected for testing where systematic selection is being applied

Kho#ng cch L kho'ng cch gi4a hai +"n v# l?y mFu lin Decision l0y m=u ti-p +!,c tnh bEng cch chia s) l!,ng ph;n 143/2001/Q!t0 c5a t7ng th* cho cT mFu. BTC, Standard 530, Appendix 03, point b.

42

Sampling risk

The possibility that a properly drawn sample may, by chance, not be representative of the population

R>i ro l0y m=u

L kh' n.ng k-t lu>n c5a ki*m ton vin d:a Decision trn ki*m tra mFu c th* khc v2i k-t lu>n 143/2001/Q!m ki*m ton vin +$t +!,c n-u ki*m tra BTC, Standard trn ton b6 t7ng th- v2i cng m6t th5 t1c. 530, point 08

Sampling unit

Items making up a transaction class or !;n v? l0y account balance out of which the m=u sample is to be selected for testing

Segregation of duties

Procedures that ensure individuals do not perform incompatible duties

L cc ph;n t0 ring bi(t c?u thnh t7ng th*. Decision @"n v# l?y mFu c th* l m6t +"n v# ti9n t(, 143/2001/Q!m6t +"n v# hi(n v>t ho/c s) l!,ng. BTC, Standard V d1: cc sc trong b'ng k n6p ti9n, cc 530, point 10 nghi(p v1 ghi C trn s7 ph1 ngn hng, Ha +"n bn hng ho/c s) d! N, cc kho'n ph'i thu khch hng. Phn tch0 Quy trnh +'m b'o cc c nhn khng th:c trch nhi&m hi(n cc nhi(m v1 ch3ng cho nhau.

Selective testing The examination of specific items Ki$m tra within a population based on the ch6n l6c auditor's knowledge of the business and the characteristics of the population being tested Statistical Sampling that uses probability theory to L0y m=u sampling determine sample size and to interpret th,ng k the results Stocktake/ The process of ascertaining inventory physical quantities by count, weight or inventory count measurement Stratification Subdivision of a population, such as monetary value. The sub-population 0 need to be defined so sampling units can belong only to one stratum

L vi(c ki*m tra cc ph;n t0 trong m6t t7ng th* d:a vo hi*u bi-t c5a ki*m ton vin v9 doanh nghi(p v +/c tnh c5a t7ng th* +!,c ki*m tra. Decision 143/2001/Q!BTC, Standard 530, point 11

L ph!"ng php l?y mFu c hai +/c +i*m sau: (1) cc ph;n t0 +!,c l:a chDn ngFu nhin vo mFu, (2) s0 d1ng lC thuy-t xc su?t th)ng k +* +nh gi k-t qu' mFu, bao g3m c' vi(c +#nh l!,ng r5i ro l?y mFu. Ki$m k0 hng L qu trnh xc minh s) l!,ng hng t3n t@n kho kho bEng cch cn, +o +ong, +-m.

Phn nhm

L vi(c phn chia t7ng th* thnh cc t7ng Decision th* con ho/c cc nhm, mIi t7ng th* con 143/2001/Q!ho/c mIi nhm l m6t t>p h,p cc +"n v# BTC, Standard l?y mFu c cng tnh ch?t (th!=ng l ch< tiu 530, point 12 gi tr#).

43

Subsequent events

Subsequent period's bank statement

Substantive procedures

Systematic selection

Events occurring between the period Cc s+ ki&n L nh4ng s: ki(n c 'nh h!Gng +-n bo co Decision end and the date of auditor's report, and pht sinh sau ti chnh + pht sinh trong kho'ng th=i gian 28/2003/Q!facts discovered after the date of the ngy kha s- tA sau ngy kha s7 k- ton l>p bo co ti BTC, Standard auditor's report k) ton l%p chnh +* ki*m ton +-n ngy kC bo co 560, point 04 bo co ti ki*m ton; v nh4ng s: ki(n +!,c pht hi(n chnh sau ngy kC bo co ki*m ton. The first bank statement issued after the B#n sao k ti B'n sao k ti kho'n +;u tin +!,c cng b)0 end of the reporting period that is used kho#n c>a sau k% bo co +!,c ki*m ton vin s0 d1ng by the auditor to verify the existence of ngn hng +* xc minh s: t3n t$i c5a cc kho'n ti9n 0 outstanding deposits and unpresented trong0 kG ti)p +ang chuy*n v cc sc ch!a0 thanh ton cheques listed on the bank theo +!,c li(t k trong b'n +)i chi-u0 s) d! ngn reconciliation as at end of the reporting hng vo cu)i th=i k% bo co. period Procedures that provide evidence as to ThH nghi&m L vi(c ki*m tra +* thu th>p bEng ch8ng Decision the substance of management's c; b#n (ki$m ki*m ton lin quan +-n bo co ti chnh 219/2000/Q!financial statement assertions. tra c; b#n) nhEm pht hi(n ra nh4ng sai st trDng y-u BTC, Standard lm 'nh h!Gng +-n bo co ti chnh. Th0 500, point 07 nghi(m c" b'n g3m: (1) ki*m tra chi ti-t cc nghi(p v1 v s) d!, (2) quy trnh phn tch. Selection of sampling units from a L+a ch6n L ph!"ng php l:a chDn cc ph;n t0 c5a Decision population at regular intervals known theo h& th,ng mFu trong + tr!2c h-t xc +#nh kho'ng 143/2001/Q!as the sampling interval cch l?y mFu +!,c tnh bEng cch chia s) BTC, Standard l!,ng ph;n t0 c5a t7ng th* cho cT mFu; sau 530, Appendix + chDn +i*m xu?t pht b?t k% c5a ph;n t0 03, point b. +;u tin v c8 th- cch m6t s) l!,ng ph;n t0 bEng kho'ng cch l?y mFu + xc +#nh sH chDn m6t ph;n t0 vo mFu.

44

Technical review A review by a partner or manager to Sot xt kM L cng vi(c c5a ki*m ton vin v cng ty Decision ensure that the form and content of thu%t (bo ki*m ton d:a trn c" sG cc th5 t1c sot xt 193/2003/ financial statements are in accordance co ti chnh) +* +!a ra C ki-n k-t lu>n l khng (ho/c c) Q!-BTC, with accounting standard, the pht hi(n ra s: ki(n trDng y-u no lm cho Standard 910 Corporations Act and Australian ki*m ton vin cho rEng bo co ti chnh + Securities Exchange requirement khng +!,c l>p ph h,p v2i chuMn m:c k(where applicable) ton Vi(t Nam (ho/c chuMn m:c k- ton +!,c ch?p nh>n), xt trn mDi kha c$nh trDng y-u (+'m b'o vAa ph'i). Cng tc sot xt bo co ti chnh khng cung c?p t?t c' cc bEng ch8ng ki*m ton v c&ng khng +!a ra s: +'m b'o h,p lC nh! m6t cu6c ki*m ton bo co ti chnh. Test data A method of testing controls in a Ph1;ng php L m6t trong nh4ng ph!"ng php th0 approach computerized information system thH nghi&m nghi(m ki*m sot +!,c s0 d1ng khi mi environment. The auditor prepares dK li&u tr!=ng h( th)ng d4 li(u thng tin +!,c +i9u fictious transactions and has these khi*n bEng my vi tnh. Cng vi(c c5a ki*m tested using the entity's software. The ton vin l chuMn b# nh4ng nghi(p v1 gi' output from processing test data is then t!Gng v dng nh4ng nghi(p v1 ny +* th0 compared with the expected output. nghi(m trn ph;n m9m c5a cng ty +!,c ki*m ton. K-t qu' tA qu trnh th0 nghi(m d4 li(u sau + +!,c +em so snh v2i k-t qu' +!,c mong +,i lc ban +;u. Tests of controls Audit tests performed to provide ThH nghi&m Ki*m ton vin ph'i th:c hi(n cc th0 Decision evidence about the effectiveness of the ki$m sot nghi(m ki*m sot +* thu th>p +;y +5 bEng 143/2001/ design and operations of internal ch8ng v9 tnh hi(u qu' c5a h( th)ng k- ton Q!-BTC, controls v h( th)ng ki*m sot n6i b6 trn cc Standard 400, ph!"ng di(n: point 33 - Thi-t k-: H( th)ng k- ton v h( th)ng ki*m sot n6i b6 c5a +"n v# +!,c thi-t ksao cho c +5 kh' n.ng ng.n ngAa, pht hi(n v s0a ch4a cc sai st trDng y-u; - Th:c hi(n: H( th)ng k- ton v h( th)ng ki*m sot n6i b6 t3n t$i v ho$t +6ng m6t cch h4u hi(u trong su)t th=i k% xem xt.

45

Tests of details of account balances

Substantive procedures to obtain Ki$m tra chi evidence directly about an account ti)t s, d1 cc balance rather than about the individual kho#n m:c debits or credits in an account, to reach a conclusion about the account balance Tests of details Tests to obtain evidence of a sample or Ki$m tra chi of transactions all of individual debits or credits in an ti)t cc account, to reach a conclusion about the nghi&p v: account balance Third parties Parties other than a contracting party Bn th9 3

L m6t th0 nghi(m c" b'n +* thu th>p tr:c ti-p bEng ch8ng v s) d! c5a m6t ti kho'n0 +* rt ra k-t lu>n v9 tnh chnh xc c5a s) d! c5a ti kho'n. L th0 nghi(m +* thu th>p bEng ch8ng v9 m6t ph$m vi mFu ho/c0 ton b6 pht sinh0 n, v0 c c5a m6t ti kho'n, +* rt ra k-t lu>n v9 tnh chnh xc c5a s) d! ti kho'n. L cc +)i t!,ng +)i t!,ng khng ph'i cc bn tham gia kC k-t h,p +3ng

Time budget

The estimated amount of time required QuM th3i gian L th=i gian d: tnh +* cc thnh vin ban at each staff level (partner, manager, ki*m ton (G cc c?p +6) hon thnh cng senior and staff0 assistants) to complete vi(c ki*m ton c5a mnh each part of audit The time at which substanttive 0 L?ch trnh procedures are performed relative to the th+c hi&n cc end of the reporting period thH nghi&m c; b#n

Timing of substantive procedures

Khi th:c hi(n cc th0 nghi(m c" b'n G giai Decision +o$n gi4a k%, ki*m ton vin ph'i th:c hi(n 101/2005/ cc th0 nghi(m c" b'n b7 sung ho/c cc th0 Q!-BTC, nghi(m c" b'n k-t h,p v2i cc th0 nghi(m Standard 330, ki*m sot +* bao qut +!,c c' giai +o$n cn point 58 l$i nhEm t$o ra c" sG h,p lC cho vi(c mG r6ng ph$m vi k-t lu>n c5a ki*m ton vin tA giai +o$n gi4a k% cho +-n giai +o$n cu)i k%. Tolerable error The maximum error in the population Sai ph5m c L m8c sai ph$m t)i +a trong m6t t7ng th* Decision that the auditor can accept as being th$ bL qua m ki*m ton vin v cng ty ki*m ton c 143/2001/ consistent with the conclusion that th* ch?p nh>n +!,c. Sai ph$m c th* bN qua Q!-BTC, sample results confirm achievement of l sai ph$m d!2i m8c trDng y-u. Standard 530, the audit objective point 13 Tracing Following through a transaction from !,i chi)u L theo di m6t nghi(p v1 tA ngu3n ch8ng not sure source of documents to accounting tA c5a nghi(p v1 ?y +-n h3 s" k- ton c5a records nghi(p v1.

46

Transactions

Exchange of assets and services 0 Giao d?ch between an entity and outside parties, as well as the transfer use of assets and services within an entity. A term that is synonymous with "fairly Ph#n nh presented". It is used when expressing a trung th+c v fair opinion on financial statements h.p l2 when required by the Corporation Act

L vi(c trao +7i ti s'n v d#ch v1 gi4a m6t th:c th* v nh4ng +)i t!,ng bn ngoi, c&ng nh! vi(c chuy*n giao s0 d1ng c5a ti s'n v d#ch v1 trong m6t th:c th*.

True and fair view

Truth and fairness

NghOa l C ki-n c5a ki*m ton vin +!a ra Decision trn bo co ki*m ton m6t s: +'m b'o chLc 120/1999/ chLn rEng bo co ti chnh + ph'n nh Q!-BTC, trung th:c v h,p lC trn cc kha c$nh Standard 700, trDng y-u; nh!ng khng +'m b'o tuy(t +)i point 7 rEng khng c b?t k% m6t sai st no trn bo co ti chnh + +!,c ki*m ton. The expectation that financial Trung th+c v NghOa l bo co ti chnh +!,c chuMn b# statements are objectively prepared h.p l2 m6t cch khch quan d:a trn0 nguyn tLc v based on generally accepted accounting cc ph!"ng php k- ton +!,c0 thAa nh>n practices and methods and are rng ri v0 phn nh trung th:c v90 b'n ch?t representative of the true economic v gi tr# kinh t- c5a giao d#ch pht sinh0 transactions and values

Underlying Information about economic actions NhKng dK L nh4ng thng tin v9 cc ho$t +6ng v s: accounting data and events contained in the accounting ki&n k) ton ki(n kinh t- +!,c ghi trong cc h3 s" krecords of an entity 4 cung c0p ton c5a m6t th:c th*. Unmodified An auditor's opinion on a generalauditor's report purpose financial report prepared in accordance with a financial reporting framework designed to achieve fair presentation that states that financial report "gives a true and fair view" or "presents fairly, in all material respects", in accordance with the applicable reporting framework Bo co ki$m ton v(i 2 ki)n ch0p nh%n ton phEn L C ki-n c5a ki*m ton vin khi bo co ti Decision chnh ph'n nh trung th:c v h,p lC trn cc 120/1999/ kha c$nh trDng y-u tnh hnh ti chnh c5a Q!-BTC, +"n v# +!,c ki*m ton, v ph h,p v2i Standard 700, chuMn m:c v ch- +6 k- ton Vi(t Nam hi(n point 35 hnh (ho/c +!,c ch?p nh>n).

47

Unqualified opinion

Expresses the auditor's belief that the / ki)n ch0p financial statements accomplish the nh%n ton stated purpose by presenting a true and phEn fair view of the entity's financial position (balance sheet), its financial performance (income statement) and its cash flow

Valuation and allocation

Vouching

An assertion that assets, liabilities, and !?nh gi v equity interests are included in the phn bfinancial report at appropriate amounts and any resulting valuation or allocation adjustments are appropriately recorded Selecting entries in the accounting Xc minh records, and obtaining and inspecting the documentation that served as the basis for entries

B ki-n ch?p nh>n ton ph;n +!,c trnh by Decision trong tr!=ng h,p ki*m ton vin v cng ty 120/1999/ ki*m ton cho rEng bo co ti chnh ph'n Q!-BTC, nh trung th:c v h,p lC trn cc kha c$nh Standard 700, trDng y-u tnh hnh ti chnh c5a +"n v# point 35 +!,c ki*m ton, v ph h,p v2i chuMn m:c v ch- +6 k- ton Vi(t Nam hi(n hnh (ho/c +!,c ch?p nh>n). C ki-n ch?p nh>n ton ph;n c&ng c hm C rEng t?t c' cc thay +7i v9 nguyn tLc k- ton v cc tc +6ng c5a chng + +!,c xem xt, +nh gi m6t cch +;y +5 v + +!,c +"n v# nu r trong ph;n thuy-t minh bo co ti chnh. L m6t c" sG dFn li(u trong + ti s'n, n, v0 which li ch5 sG h4u +!,c ghi trong bo ci ti starndard? chnh G m6t gi tr# ph h,p v b?t k% +i9u ch<nh no v9 +#nh gi v phn b7 c&ng +!,c ghi l$i mDt cch h,p lC. L l:a chDn nh4ng bt ton trong s7 k0 not sure ton; t>p h,p v ki*m tra ch8ng tA lin quan +-n nh4ng bt ton +. L nh4ng ch8ng tA +!,c l!u trn gi?y, trn phim, ho/c cc ph!"ng ti(n +i(n t0 khc, bao g3m bEng ch8ng ki*m ton +!,c ki*m ton vin dng +* gip +!a ra C ki-n ki*m ton.

Working paper Documentation stored on paper, film or Gi0y t3 lm in electronic media containing audit vi&c evidence in support of the audit opinion

5. Limitation and conclusion This research, based on current laws and regulations on audit and secondary data, is establishing a glossary of audting terms and Vietnamese equivalents. In the process of doing the research, there were some drawbacks that we had to deal with. First, some terms can not be found in Vietnam auditing standards because normally, the procedures relating to the terms are not in auditing pratices in

48

Vietnam. Second, due to time limit and lack of real auditing experiences, there might be some problems with translation. These problems hopefully can be solved in the further study on this topic. Overall, we hope that this research is the useful basic material for students, especially future accouting students in FMT to help a better and more practical understanding of auditing subject.

6. References

49

2009. Window dressing. Ti chnh "#u t$, [internet] 12 September. Available at: http://www.taichinhdautu.com/2009/12/ window-dressing.html [Accessed 24 October 2010]

Ahu, 2007. Qu'n lC ch?t l!,ng +3ng b6 (TQM). Saga [internet] 28 September. Available at URL: http://www.saga.vn/ Kynangquanly/Lythuyetquantri/6426.saga [accessed October 23 2010]

Arens, B. Shailer, F. & Elder, B., Auditing, 2010. AUDITING, Assurance Services and Ethics in Australia. 8th ed. Australia: Pearson.

! ! ! ! ! ! ! !

Decision 03/2005/Q@-BTC Decision 101/2005/Q@-BTC Decision 120/1999/Q@-BTC Decision 143/2001/Q@-BTC Decision 193/2003/Q@-BTC Decision 219/2000/Q@-BTC Decision 28/2003/Q@-BTC Decision 87/2005/Q@-BTC

H6i, N.V 2007. Ki*m ton n6i b6: B'o v( gi tr# doanh nghi(p. Thnh "%t, [online]. 4. Available at URL: http://www.vaahcmc.org.vn/index.php?o=modules&n=specialsubject&f=detail&id=621 [Accessed Octember 23 2010]

50

Johns Company, 2010. Ph#n m&m ki'm ton t(ng qut [online]. Available at URL: http://www.johns-company.com/index.php? lang=vi&cat=166&month=2010-04&id=76654 [accessed October 23 2010]

Law on government audit 37/2005/ QH11

51