APS

Basic auditing:
Chapter 1: Overview of auditing...................................................................................... 2
1. Definition, Purpose, Classification: .......................................................................... 2
2. Auditor:...................................................................................................................... 3
Chapter 2: Internal control ( kiểm soát nội bộ) .............................................................. 3
1. Definition, Purpose:................................................................................................... 3
2. Components: .............................................................................................................. 3
Chapter 3: Some concepts of auditing ............................................................................. 4
1. Cơ sở dẫn liệu: Management assertion ..................................................................... 4
2. Bằng chứng kiểm toán: Audit Evidence.................................................................... 5
3. Gian lận và nhầm lẫn: Fraud and error ...................................................................... 5
4. Trọng yếu: Materiality............................................................................................... 5
5. Rủi ro kiểm toán: Audit risk ...................................................................................... 5
6. Hoạt động liên tục: Going concerns concept ............................................................ 6
Chapter 4: Auditing methodology and Auditing sampling ........................................... 6
1. Auditing methodology:.............................................................................................. 6
2. Auditing sampling: .................................................................................................... 7
Chapter 5: Audit procedures ............................................................................................ 8
1. Planning of the audit strategy: ................................................................................... 8
2. Execution of the audit strategy .................................................................................. 8
3. Audit conclusion and reporting .................................................................................... 8

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1. Basic auditing:
 Definition: This subject provides basic and general knowledge of auditing process.
 Purpose: It is the introductory subject before researching others subjects which are
more difficult and complicated in auditing major.
 How to apply:
Applying modern audit techniques and auditing procedures (thủ tục kiểm toán) to
auditing process.
Using learning to deal with some practical auditing situations.
Chapter 1: Overview of auditing
1. Definition, Purpose, Classification:
- Auditing is the detailed examination of the financial reports of an organization and is
used to provide confidence for all stakeholders (cổ đông) that the organization’s
accounting statements are accurate.
- The purpose of auditing is to provide information for:
˖ Making decisions concerning the use of limited resources
˖ Effectively directing (quản lý) and controlling an organization’s human & material
resources.
- Classification: According to the subject of audit ( chủ thể)
External Audit is done by independent and third party agencies and companies. This
type of audit is most commonly intended to result in a certification of the financial
statements of an entity. This certification is required by certain investors and lenders,
and for all publicly-held businesses.
Internal audit refers to the audits done by employees and stakeholders within the
organizations with a view to evaluate and assess whether the organization is
following the internal processes, norms, rules, and regulations in addition to
determining whether it is in compliance with the regulatory norms.
Government Audit is done by govt. auditor and provides specialized audit services
to the public sector

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- Standards on Auditing:
International Standards on Auditing (ISA) are professional standards for the
performance of financial audit of financial information. These standards are issued by
International Federation of Accountants (IFAC)
Vietnamese Standard on Auditing (VAS) establish standards and provide guidance
on the objective and general principles governing an audit of financial statements.
2. Auditor:
An auditor is someone who is responsible for evaluating the validity and reliability of
a company or organization’s financial statements.
The auditor's job is to write a report at the conclusion of the audit which determines
the level of accuracy and clarity that the organization has accounted for.
Chapter 2: Internal control ( kiểm soát nội bộ)
1. Definition, Purpose:
- Internal control is a process for assuring of an organization's objectives in operational
effectiveness and efficiency, reliable financial reporting, and compliance with laws,
regulations and policies
- 3 objectives of internal control are:
˖ financial reports are reliable,
˖ operations are effective and efficient,
˖ activities comply with (tuân thủ) applicable laws and regulations.
- It plays an important role in detecting and preventing fraud and protecting the
organization's resources, both physical (e.g., machinery and property) and intangible
(e.g., reputation ).
2. Components:
5 Components of Internal Control System:
Control environment: This includes all procedures designed to ensure management
directives (chỉ thị)are carried out (tiến hành). If the controls are taken seriously, this
greatly enhances the strengthen of the system of internal control.
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Risk assessment. This is the process of reviewing the business to see where the most
critical (nguy cấp) risks lie, and then designing controls to address those risks.
Control activities. This is the use of accounting systems, information technology, and
other resources to ensure that controls are put in place and operating properly.
Information and communication (thông tin và truyền thông) The auditor must
obtain an understanding of the information system, including the related business
processes, relevant to financial reporting.
Monitoring. This is the set of processes used by management to examine and assess
whether its internal controls are functioning properly.
Chapter 3: Some concepts of auditing
1. Cơ sở dẫn liệu: Management assertion
Management assertions are claims made by members of management regarding certain
aspects of a business.
Management assertions are usually used for the audit of a company’s financial
statements. The auditors test the validity of these assertions by conducting a number of
audit tests
6 types of Management assertion:
1. Accuracy. The assertion is that all information disclosed is in the correct
amounts, and which reflect their proper values.
2. Authorization: All transactions have been approved by the appropriate member
of company management.
3. Completeness. The assertion is that all transactions that should be disclosed
have been disclosed.
4. Occurrence. The assertion is that disclosed transactions have indeed occurred.
5. Rights and obligations. The assertion is that disclosed rights and obligations
actually relate to the reporting entity.
6. Understandability. The assertion is that the information included in the financial
statements has been appropriately presented and is clearly understandable.
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2. Bằng chứng kiểm toán: Audit Evidence

Audit evidence is evidence obtained by auditors during a financial audit and recorded
in the audit working papers.
It is collected for review of a company's financial transactions, internal control
practices and other factors necessary for the certification of financial statements by an
auditor.
Auditors use audit evidences in many different forms and sources. Those audit
evidences could be data or information, physical or nonphysical. For example of audit
evidence: Financial statements, Banks Statements, Bank confirmation, Invoices
3. Gian lận và nhầm lẫn: Fraud and error
 Fraud : is an intentional act by 1 or more to illegally obtain benefits
 Error : is an unintentional act by 1 or more to illegally obtain benefit
4. Trọng yếu: Materiality
Materiality is a concept within auditing and accounting relating to the importance of
an amount, transaction, or discrepancy(chênh lệch).The objective of an audit of financial
statements is to enable the auditor to express an opinion whether the financial statements
are prepared, in all material respects (khía cạnh trọng yếu), in suitability with an
identified financial reporting framework (khung BCTC)
5. Rủi ro kiểm toán: Audit risk
Audit risk is the risk that an auditor expresses an inappropriate (không thích hợp)
opinion on the financial statements.
Audit risk model: Mô hình rủi ro kiểm toán
Audit risk = Inherent Risk x Control Risk x Detection Risk
AR = IR * CR * DR

➡ Rủi ro kiểm toán = Rủi ro tiềm tàng x Rủi ro kiểm soát x Rủi ro phát hiện

- Audit risk may be considered as the product of the various risks which may be
encountered in the performance of the audit. In order to keep the overall audit risk of

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engagements below acceptable limit, the auditor must assess the level of risk pertaining
to each component of the audit risk

➡ Rủi ro kiểm toán có thể được coi như tích của các rủi ro khác nhau có thể gặp phải

trong việc thực hiện công việc kiểm toán . Để giữ cho các rủi ro kiểm toán tổng thể của
các rủi ro của các bên gắn kết dưới mức giới hạn chấp nhận được , kiểm toán viên phải
đánh giá mức độ rủi ro liên quan đến mỗi thành phần của rủi ro kiểm toán.
The three types of audit risk are as follows:
Inherent risk (Rủi ro tiềm tàng). Inherent risk is the risk which could not be prevented
due to uncontrollable factors and it is also not found in Audit.
Control risk. This is the risk that material misstatements would not be detected or
prevented by a client's control systems.
(Rủi ro kiểm soát: Đây là rủi ro mà các sai sót trọng yếu tiềm tàng sẽ không được phát
hiện hoặc ngăn chặn bởi các hệ thống kiểm soát của khách hàng)
Detection risk. This is the risk that the audit procedures used are not capable of detecting
a material misstatement.
(Rủi ro phát hiện. Đây là rủi ro mà các thủ tục kiểm toán được sử dụng không có khả
năng phát hiện sai sót trọng yếu.)
- Material /mə'tiəriəl/ (adj): Trọng yếu
- Misstatement /'mis'steitmənt/ (n): Sai sót
- Entity /'entiti/ (n): Đơn vị
6. Hoạt động liên tục: Going concerns concept
The going concern concept of accounting implies that the business entity will
continue its operations in the future and will not discontinue operations due to any
reason.
Chapter 4: Auditing methodology and Auditing sampling
1. Auditing methodology:
There are five types of Testing Methods used during audit procedures:

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 Inquiry (thẩm tra): Simply, the auditor asks appropriate management and staff
about the controls in place at the service organization to determine some relevant
information
 Observation: Activities and operations are tested using observation
 Examination of auditing evidence (Xét đoán bằng chứng kiểm toán) . This method
often includes reviewing written documentation and records such as employee
manuals to determine whether or not manual controls are being performed.
 Re-performance: This method is used when the other three above methods
combined fail to provide sufficient assurance that a control is operating effectively.
Re-performance requires the auditor to manually execute the control, such as re-
performing a calculation that a system automatically calculates
 CAAT: This method can be used to analyze large volumes of data, or just be able to
analyze every transaction rather than just a sample of all transactions. Software is
generally used to perform a CAAT,
2. Auditing sampling:
- The definition of audit sampling is: Selecting less than 100% of items within a
population of audit relevance in order to provide the auditor with a reasonable basis
on which to draw conclusions about the entire population.
- Auditors will not test all the information because this would be impractical as well as
uneconomical. Instead, the auditor will use sampling as an audit technique in order to
form their conclusions.
- 5 principal methods of audit sampling as follows:
˖ Random selection: This method ensures that all items within a population stand
an equal chance of selection by the use of random number tables
˖ Systematic selection (Lựa chọn theo hệ thống): The method divides the number
of sampling units within a population into the sample size (cỡ mẫu) to generate a
sampling interval (khoảng mẫu)

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˖ Monetary unit sampling (Lấy mẫu theo đơn vị tiền tệ) The objective of
monetary unit sampling (MUS) is to determine the accuracy of financial accounts.
˖ Haphazard selection (Lựa chọn bất kỳ)When the auditor uses this method of
sampling, he does so without following a structured technique
˖ Block selection.(Lựa chọn mẫu theo khối)This method of sampling involves
selecting a block of contiguous items (mẫu kế tiếp) from within a population
Chapter 5: Audit procedures
Audit procedures are used by auditors to determine the quality of the financial
information being provided by their clients
The audit procedures are divided into 3 stages as follows:
1. Planning of the audit strategy:
In the planning phase, the auditor makes an effort to understand what kinds of
documentation are needed, collects documents from previous audits and gathers
preliminary statements from involved parties.
During the planning phase, the auditor also begins to plan the scope of the audit and to
determine what the objective of the audit is.
2. Execution of the audit strategy
The auditor begins to evaluate the way that a company operates and takes into account
the organization's internal processes.
3. Audit conclusion and reporting
Our principal product is the final report in which we express our opinions based on proof
collected during the executing process. Additionally, the audit findings are presented and
recommendations discussed for improvements
Types of Audit Opinions
An audit opinion is expressed on audited statements. It is required that an auditor state in
the opinion that generally accepted accounting principles have been followed that they
have been applied on a basis consistent with that used the preceding year.
Types of Audit Opinions

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Unqualified opinion (ý kiến chấp nhận toàn phần) — The unqualified opinion has no
reservations concerning the financial statements. This is also known as a clean opinion
meaning that the financial statements appear to be presented fairly.
Qualified opinion (ý kiện ngoại trừ) — This means that the auditor has taken exception
to certain current-period accounting applications or is unable to establish the potential
outcome of a material uncertainty.
Disclaimer opinion (ý kiến từ chối) — This is a special type of audit report that should
be issued when the auditor permits his or her name to be associated with financial
statements that were not examined in accordance with generally accepted auditing
standards.
Adverse opinion (ý kiến trái ngược) — This is a type of audit opinion which states that
the financial statements do not fairly present the financial position, results of operations,
and changes in financial position, in conformity with generally accepted accounting
principles.

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