THE AUDIT PROUD

2023

FTMS Training Systems (Vietnam)

Ltd
 External Audit

1. Definition:

is a type of assurance engagement that is carried out by an auditor to give an

independent opinion on a set of financial statements

2. Objective:

To enable the auditor to express an opinion on whether the financial statements are
prepared, in all material respects, in accordance with an applicable financial reporting
framework.

3. Objective of an auditor:

are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, in order to enable
them to express an opinion on whether the financial statements are prepared, in all
material respects, in accordance with an applicable financial reporting framework

Trainer: Ngô Hoàng Đông Anh - Senior - Audit &

Assurance
 Statement of Financial Position
(Balance Sheet)

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Statement of Profit or Loss

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Statement of Cash Flows

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Disclosure Notes

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 VAS – Vietnam Accounting Standards
A system of accounting rules and methods for preparing financial
statements, act as the primary set of guidelines on the way accounts and
books are prepared and recorded. Issued by the Ministry of Finance
(Vietnam)

IFRS – International Financial Reporting

Standards

International Financial Reporting Standards, commonly called IFRS, are

accounting standards issued by the IFRS Foundation and the
International Accounting Standards Board (IASB). They constitute a
standardized way of describing the company's financial performance and
position so that company financial statements are understandable and
comparable across international boundaries.[

Trainer: Ngô Hoàng Đông Anh - Senior - Audit &

Assurance
 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Fraud Risk

Fraud is an intentional act by one or more individuals among management, those charged with
governance, employees or third parties involving the use of deception to obtain an unjust or illegal
advantage.

Fraud may be perpetrated by an individual, or colluded in, with people internal or external to the
business.

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Fraud Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Fraud Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Fraud Risk

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

Overall audit engagement process

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Understanding the entity and its environment:

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Understanding the entity and its environment:

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Understanding the entity and its environment:

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Evidence

Is all of the information used by the auditor in arriving at the

conclusions on which the auditor’s opinion is based.

Auditors need to design and perform audit procedures the are

appropriate in the circumstances for the purposes of obtaining
sufficient appropriate audit evidence.

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Evidence

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Evidence

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Evidence

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Audit Evidence

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Procedures for obtaining audit evidence

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Analytical Procedures
Use at planning, risk assessment and substantive procedures.

• Variance analysis: compare current information against prior period information

• Ratio analysis: calculate key financial ratios

• Proof-in-total: develop an expected value and compare to actual value

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Confirmation
• Obtaining representation of information directly from a third party (bank, suppliers,
customers)
• Normally used to confirm account balances
• Example: sending confirmation to suppliers to confirm account payables amount

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Inspection
• Inspection of tangible assets
• Inspection of documentation or records
• Example:
❑ Inspection of newly acquired machineries during the year;
❑ Inspection of invoice, goods delivery note and other relevant documentation for sales
revenue transactions.

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Observation
• Watch a procedure or process being performed
• May be limited use because act of being observed could affect how the
procedure/process is performed
• Example: observe client personnel carry out year-end inventory count

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Recalculation and Reperformance
• Recalculation: check the mathematical accuracy of documents or records
• Reperformance: independently execute procedures/controls originally performed by client
entity’s internal control
• Example:
❑ Recalculate depreciation expenses during the year
❑ Reperform year-end bank reconciliation

Trainer: Ngô Hoàng Đông Anh - Senior - Audit & Assurance

 Conclusion & Q&A

Trainer: Ngô Hoàng Đông Anh - Senior - Audit &

Assurance