Guest Lecturers:

Mr. Ngo Huy Loc, CMA

Finance Director of CJ Group VN

CLASS RULE
ACCOUNTING PRACTICE & MISTAKE
SEP 2023
 Targets

How to prevent accounting mistakes

Recognize Common mistake

in accounting

Understand basic accounting process

in company
 Contents

I II III IV

Accounting P2P O2C Others

mistake Common Mistakes Common Mistakes Common Mistakes
(What and Why ) and Prevention and Prevention and Prevention
I. Accounting mistake
 I. Accounting mistake

Accounting Accounting
mistake WHAT fraud

?
an unintentional error ?
an intentional act to hide
or change facts.
 I. Accounting mistake

Lost company asset

Penalty from Gov.

WHY
IMPORTANT
Criminal case

Default
 I. Accounting mistake
Wrong input Wrong data
circulation

Double input Not matching

VS SYSTEM /
HUMAN Subs-G/L
PROCESS
Missing input
Weak internal
Reverse input control system
II. Common Mistakes and
Prevention in P2P
II. Common Mistakes and Prevention in P2P
 II. Common Mistakes and Prevention in P2P
CASH/BANK
• Double payment

• Pay wrong
Amount/Recipient

• Not record cash in transit

• Violate duty segregation
(A/P-Cashier)
• Clearing debt to wrong
supplier
• Non-compliance
payment/receipt voucher
II. Common Mistakes and Prevention in P2P
CASH/BANK

Prevention

1
 II. Common Mistakes and Prevention in P2P
INVENTORY
• Determine wrong purchase
value
• Record without supporting
doc. (inv., QA, ...)
• Wrong allocation supplies tool
value
• Allocate damaged supplies • Violate duty segregation
tool (Warehouse-Acc.)
• No settle damaged/missing • No report IN-OUT in detail
inventory • No checking for Slow
moving stock
• No checking quality
Inventory IN
II. Common Mistakes and Prevention in P2P
INVENTORY

Prevention

1 2
 II. Common Mistakes and Prevention in P2P
FIXED ASSET
• Wrong classification
(LUR/Building/Factory…)
• Wrong capitalization (repair
fee, R&D…)
• Record without supporting
doc. (Completion report...)
• Depreciate Unused asset • No follow up physical
• No inform depreciation moving
method to Tax dept. • Wrong depreciation start
point/time/method
• No Asset Tag
II. Common Mistakes and Prevention in P2P
FIXED ASSET

Prevention

1
 II. Common Mistakes and Prevention in P2P
ACCOUNT PAYABLE
• Wrong entry
(Acc/Amount/Vendor…)
• Missing additional obligation
(FCT…)
• Lacking supporting docs.
(Inv., contract…)
• Create multiple code for one
Vendor
• Payment earlier deadline
II. Common Mistakes and Prevention in P2P
ACCOUNT PAYABLE

Prevention

1 2 3
III. Common Mistakes and
Prevention in O2C
III. Common Mistakes and Prevention in O2C
III. Common Mistakes and Prevention in O2C
RECEIVABLE (A/R)

• Clear A/R to wrong

customer
• Forget issue invoice

• No Aging A/R
• Over sale -> to bad debt.
• Passing collection
obligation between depts.
• Create multiple customer
code
III. Common Mistakes and Prevention in O2C
RECEIVABLE (A/R)

Prevention

1
IV. Common Mistakes and
Prevention Other
 IV. Common Mistakes and Prevention Other
GENERAL ACCOUNTING
• Missing accrual
(interest/expenses…)
• Missing provision (Bad
debt/Inventory…)
• Missing revaluation foreign
currency • No process for reviewing
• Wrong understanding Law closing data
(Acc/Tax/Bank) • No segregate create and
post entry
• No control for creating
account code
• Lost document/Data
IV. Common Mistakes and Prevention Other
GENERAL ACCOUNTING

Prevention

1
Q&A
THANK YOU