CHAPTER 1: CASH: 1.2.1.

Control Objectives

In order to effectively control internal control over cash,

it is necessary to meet the following requirements:
- Control business cycles that affect revenue and
expenditure (sales, purchases ...).
- Independent inspection: inventory of funds,
reconciliation of bank statements.
- Collect enough, spend properly, and maintain a
reasonable balance of funds

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 1.2.2. Control activities
Direct collection:
- Separate the function of sales and collection;
- Number the order continuously in advance on receipts(Thu
tiền) and invoices;
- Use cash registers(máy tính tiền), delivering cash registers
to customers;
- Compare the total proceeds of the goods sold according to
the books with the money paid by the employee on the
same day;
- Prepare daily sales reports.
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 1.2.2. Control activities
Collecting debts:
- Customers come to pay: cash receipts;
-To the customer’s company collecting money: referral( giấy
giới thiệu), debt reconciliation(đối chiếu công nợ);
- Postal collection: assign tasks to employees: invoicing –
tracking debts – reconciling general books with details –
listing cheques received – depositing cheques in banks –
collecting money;
 1.3.1. Risk assessment
Common risks and errors
Cash on hand
Physical stock-take: No regular stock-take, no independent
participants in the stock-taking; cash in different places differences
are not handled in a timely manner...
Record in the cash ledger when the fund has not been imported.
(hạch toán khi thực tế chưa nhập xuất quỹ)
 For revenues and expenditures in foreign currencies: Do not
track the original currency, use incorrect exchange rates, and do
not assess unrealized exchange rate differences for year-end
balances.

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 Cơ sở dẫn liệu Mục tiêu kiểm toán Thủ tục kiểm toán
•Chứng kiến kiểm kê (Physical observation):
KTV chứng kiến nhân viên của khách hàng
Hiện hữu Số dư tiền mặt được ghi nhận thực sự kiểm kê tiền mặt. Sau đó, KTV sẽ thu thập
(Existence) tồn tại tại thời điểm cuối năm tài chính biên bản kiểm kê, có đầy đủ chữ ký của kế
toán, thủ quỹ và của KTV (người chứng kiến
kiểm kê)

•Đối chiếu số dư tiền mặt (Reconciliation):

KTV lấy số dư tiền mặt đã được ghi nhận
Đầy đủ Tiền mặt có tồn tại nhưng không được trên sổ kế toán, lọc số dư trên bảng cân đối
(Completeness) ghi nhận trên sổ thử so sánh với số dư tiền mặt xem có khớp
không
•Kiểm tra những chứng từ liên quan đến số dư
Quyền và nghĩa vụ Doanh nghiệp có quyền hợp pháp với số tiền mặt như chứng từ ngân hàng đối với việc
(Rights and obligations) dư tiền cuối kỳ rút tiền gửi ngân hàng về nhập quỹ tiền mặt,
chứng từ thu chi tiền mặt
•Thủ tục đánh giá lại (Revaluation): Kiểm tra
Định giá
Tiền được ghi nhận theo đúng giá trị số dư ngoại tệ mà khách hàng đã ghi có đúng
(Valuation)
tỷ giá 
 Cơ sở dẫn liệu Audit Objectives Auditing procedures
•The auditors witness the client's employees take stock of
the cash to avoid errors in cash balances.
The recognized cash balance •The auditor sends a confirmation letter to the bank to
Hiện hữu
actually exists at the end of the confirm the balance actually exists.
(Existence)
financial year

•The auditor should reconcile the cash balance by taking

the cash balance recorded in the accounting books,
Đầy đủ Cash exists but is not recorded filtering the balance on the balance sheet and trying to
(Completeness) in the books compare it with the cash balance to see if it matches.

•Checking documents related to cash balance such as

Quyền và nghĩa vụ The enterprise has a legal right
bank documents for withdrawal of bank deposits to cash
(Rights and obligations) to the ending cash balance
deposit, cash receipts and payments

Định giá Cash is recognized at its fair •The auditor checks the foreign currency balance that the
(Valuation) value client has credited at the correct exchange rate
 1.3.1. Risk assessment
Common risks and errors

Cash at bank
There is no regular reconciliation between the accounting book
and the bank statements.
Do not make accounting slips for revenues, and cash at bank,
and do not attach relevant documents to accounting slips.
Inadequate( ko đầy đủ) and untimely(ko kịp thời) accounting of
revenues and expenditures.
There are many deposit accounts in many different banks,
many of which are not used but do not settle during the year.

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 1.3.2. Tests of control

Compare details of receipts from cash book with

collection journal with bank statement and accounts
receivable.
List transfer transactions between banks in the past
few days before and after it is too late to detect the
trick
Select a sample to compare the expenses recorded
in the cash disbursement journal with the accounts
payable and related documents
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 1.3.3. Substantive tests
Tests of details:
Collect a summary table of cash balances and cash equivalents at the
closing date, and compare it with the balances on the detailed
ledgers, ledgers, and financial statements.
Check the beginning of the year balance: Compare the beginning of
the year balance of cash with the minutes of fund inventory and
books of previous years. Send a letter confirming the bank with
both the balance at the beginning of the year.
• Witness the inventory of cash funds (including gold, silver, and gems,
if any) at the closing date and compare them with the balance of the
fund book and the detailed book at the closing date, ensuring that all
funds of the enterprise are inventoried.

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 1.3.3. Substantive tests

In case of witnessing cash on hand before or after the closing date,

select a sample to check receipts/ expenditures for operations
arising after or before the time of inventory, compare
downstream / reverse to the actual balance of money on the fund
book at the closing date by adjusting the corresponding arising
revenue and expenditure operations.
• Detect and find out the cause of the discrepancy (if any).

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 1.3.3. Substantive tests
Make and send a letter confirming the account balance to
send to the bank.
Summarize the results received, compare with the
balance on the detail book.
Explain the spreads (if any).
Skim the Ledger to detect unusual operations in value,
reciprocal accounts or in the nature of business.
• Check to the original document (if necessary).

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 1.3.3. Substantive tests

Check the application of the conversion rate to the

accounting currency for foreign currency-based balances
at the time of closing.
Check how exchange rate differences are calculated and
accounted for.
Check for large or unusual revenues and expenditures
before and after the closing date, determining if they were
recorded in due course.
• Check the presentation of cash and cash equivalents on
financial statements.
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 CHAPTER 2: 2.2.1. Control objectives
 Process customer purchase requests
• Checking orders must be signed by an authorized person and
stamped by the business.
 credit approval
• Reviewing and approving orders Selling on credit, businesses need
to set up a clear credit policy, the review department must evaluate
the customer's ability to pay.
• For new customers, customers can ask for collateral or collateral
 make delivery note delivery note and invoice
• Check the documents related to export orders : vouchers .
• Invoices need to be signed by the maker of the legal
representative of the business and the customer. The bill is checked
before sending to the customer.
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 2.3.1. Risk assessment
For Accounts Receivable
There is no detailed tracking book for each account receivable.
The approval process for sale is incomplete and not fully stated: there
are no regulations on the maximum amount of debt, or payment
terms...
Inadequate reconciliation or reconciliation of liabilities has not been
carried out at the time of preparation of financial statements.
• Discrepancies in reconciliation minutes and unprocessed accounting
books.

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 2.3.1. Risk assessment
For Accounts Receivable
- There are debts recovered in cash with large amounts of money,
which do not stipulate a deadline for remittance, so they are
misappropriated by employees, or embezzled.
- Recording receivables in the wrong period, customers have paid but
have not yet accounted for.
- Misrepresentation of debts between customers.
- No classification of debt age, no effective debt collection and
management policies.
- Have not made provisions for receivables that are difficult to claim or
make provisions for but are missing or over-deducted, exceeding the
allowable rate.
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 Cơ sở dẫn liệu Auditing procedures
•Send confirmation letters.’
•Choose customers with large balances to
Hiện hữu send direct mail, the remaining customers
(Existence) send random samples
•Check the payment of customers after years
end
Đầy đủ - Send confirmation letters.
(Completeness) - Compare detailed G->General L or A.R
-Check the confirmation letter from the bank,
Quyền và nghĩa vụ
also check if there are any loans on the ledger
(Rights and obligations)
-Send confirmation letters
•Check foreign currency(kiểm tra ngoại tệ)
• If bad debts, we will Set up a fallback
analysis, and check setup operations.(thiết lập
Định giá
dự phòng, ktra hđ dự phòng)
(Valuation)
• promulgating revenue and expense
recognition policies( ban hành chính sách ghi
nhận doanh thu, chi phí
 Control activities of account receivable
- Test invoices listed in receivable report. The auditors will select some invoices from the accounts receivable
aging report and compare them to supporting documentation to see if they were billed in the correct amounts,
to the correct customers, and on the correct dates.(Kiểm tra hóa đơn được liệt kê trong báo cáo phải thu.)
- Confirm accounts receivable. A major auditor activity is to contact your customers directly and ask them to
confirm the amounts of unpaid accounts receivable as of the end of the reporting period they are auditing.
This is primarily for larger account balances, but may include a few random customers having smaller
outstanding invoices.(Xác nhận các khoản phải thu. Hoạt động chính của kiểm toán viên là liên hệ trực tiếp
với khách hàng của bạn và yêu cầu họ xác nhận số tiền của các khoản phải thu chưa thanh toán tính đến
cuối kỳ báo cáo mà họ đang kiểm toán)
- Review cash receipts. If the auditors are unable to confirm accounts receivable, their backup auditing
technique is to verify that customers have paid the invoices, for which they will want to review check copies
and trace them through your bank account(Xem lại biên lai tiền mặt.)
- Review receiving log. The auditors will review the receiving log to see if it records an inordinately large
amount of customer returns after the audit period, which would suggest that the company may have
shipped more goods near the end of the audit period than customers had authorized.(Xem lại nhật ký nhận.
Kiểm toán viên sẽ xem xét nhật ký nhận hàng để xem liệu nó có ghi lại số lượng hàng trả lại của khách hàng
quá lớn sau thời gian kiểm tra hay không)
 2.3.1. Risk assessment
For Revenue
Revenue recorded on accounting ledgers and accounting statements is higher than the actual revenue
– The buyer has advanced but the business has not shipped goods or provided services to the buyer.
– The buyer has advanced money, the business has exported goods or provided services but the
procedures for buying, selling, and providing services have not been completed and the buyer has not
accepted payment.
– Incorrectly calculated and recorded data increases revenue compared to the data reflected on accounting
documents.
Revenue recorded on accounting ledgers and accounting statements is lower than the actual
revenue
– The enterprise has carried out sales procedures and provided services to customers, customers
have paid or have carried out payment acceptance procedures but the entity has not accounted for
or has mistakenly accounted for other accounts.
– Financial operating revenues have been collected but the unit has not accounted for or has
mistakenly accounted for other accounts.
– Incorrectly calculated and book-written figures reduce revenue compared to the figures on
accounting documents.

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 2.3.2. Tests of control
Potential risks Control activities
Making the wrong sales order: quantity, type, Sales order creation must be based on a tested
unit price(lập lệnh bán hàng sai số lượng) purchase order(lập lệnh bán hàng phải dựa vào
đđh đã ktra)
Semi-toler operations are not appropriately There must be a clear policy of sale(phải có
ratified.(các nv bán chịu k dc phê chuẩn thích chính sách bán chịu rõ ràng)
hợp)
Non-invoiced sales(bán hàng k lập hóa đơn) Invoicing as soon as delivery, invoices are
numbered continuously(lập hđ ngay khi giao
hàng
Record unreal sales(ghi nhận nv bán hàng k Check invoices and delivery documents
có thực)
Incorrectly recorded revenue on invoices( ghi Independent check of invoices(ktra độc lập hđ)
sai dthu hóa đơn)
Revenue and NPT recorded incorrectly Issuing guidance on revenue recognition
conditions for employees( ban hành ddkien ghi
nhận doanh thu cho nvien
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 2.3.2. Tests of control
Perform tests of control:
Control activities Tests of control

Review of the sale Observe…

Review of returned sales and discounts Inquire…
Regular price updates
Have an independent invoice checker Inspect….
Compare with purchase orders, sales
Walk-throught….
orders, invoices ... before recording
receivables
• Check the total number of each type
of goods, each invoice ...

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 2.3.3. Substantive tests:
Tests of details
- Collect a detailed summary table of receivables for customers
and customers to pay in advance according to each customer:
- Compare data with relevant documents (Ledger, detailed
ledger, financial statements).
- Review the Consolidated Table to identify unusual items (large
balances, stakeholders, long-term debt, non-volatile balances,
non-,... debts). Carry out the inspection procedure (if
necessary).
- Skim the Ledger to identify unusual operations (in terms of
content, value, reciprocal accounts...). Find out the cause and
carry out the corresponding inspection procedure (if necessary).
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 2.3.3. Substantive tests:
Tests of details
Procedures for auditing the balance at the beginning of the period :
+ Choose a test sample to the original document for large
value balances.
+ Check operations arising after the end of the fiscal year to
prove the balance at the beginning of the period.
+ Send a confirmation letter (if necessary).
+ Consider those balances related to foreign currency - if any.
+ Check the balance of provision for hard-to-collect
receivables at the first day of the period.

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 2.3.3. Substantive tests:
Tests of details
Check for bad debt provisions and contingency costs:
- Find out the credit policy of the unit, and update changes
compared to the previous year (if any).
- Learn and evaluate the methodology, analysis, or assumptions that
the entity uses to make provisions for bad receivables, changes in
methods, or assumptions used in this period compared to the
previous period. Discuss with the entity's board of directors the key
assumptions that have been used and the entity's experience in
recovering receivables.
- Check documents related to provisioned receivables, and evaluate
the reasonableness of estimation, calculation, and recognition.

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 2.3.3. Substantive tests:
Test of details
Check the correctness of the period: Check the correct accounting of
receivables or check the receipts after the end of the accounting period
(combined with the check of the correctness of the revenue section).
Prepayment amounts: Check the original documents (Contracts, money
transfer documents ...), and evaluate the reasonableness of the
balances by considering the reasons for prepayment, and the level of
transaction completion at the end of the accounting period.
• Check debt clearing operations: Review contracts, minutes of
agreements, minutes of reconciliation, and transfer of debts between
the parties.

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 2.3.3. Substantive tests:
For Revenue
Tests of details:
- Collect a summary table of revenue by customers, groups of
goods and services provided by months of the year:
+ Compare with relevant documents (ledger, detailed ledger,
report of the sales department, export department,... in quantity,
value), and explain any differences.
+ Analyze fluctuations by month, by the same period last year,
and explain the causes of fluctuations.
+ Compare accounting revenue with revenue according to the
VAT declaration for the year. Explain the difference (if any).

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 2.3.3. Substantive tests:
For Revenue
Tests of details:
- Skim the Ledger to identify unusual operations (in terms of content,
value, reciprocal accounts...). Find out the cause and carry out
the corresponding inspection procedure (if necessary).
- Choose a sample of the revenues recognized during the year and
check the relevant original documents.
- Revenue deductions: Check the original documents for large
revenue deductions for the year and this year's revenue
deductions but have recorded revenue in the previous year,
ensuring compliance with the sales regulations of the business as
well as the tax law.
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 2.3.3. Substantive tests:
For Revenue
Tests of details:
- Check the correctness of revenue:
+ Check sales invoices, bills of lading, warehouse slips, and
contracts of shipments sold before and after the date from the end of
the accounting period and check tax returns in the months after the end
of the accounting period to ensure that revenue has been recorded on
time.
+ Check the reasonableness of returned shipments or discounted sales
arising after the end of the accounting period, and assess the impact on
the recorded revenue during the year.

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 Risk assessment về mua hàng
- Falsifying purchase invoices to make misappropriations of the entity’s funds.(lập khống hóa đơn mua
hàng để chiếm dụng số tiền đơn vị)
Þ C.A: + the unit should provide regulations on purchases and review orders before issuing invoices
+ periodic unit checking of purchase invoices in a month or quarter.
- Choose a supplier to buy goods with poor quality of service(chọn nhà mua hàng k chất lg)
Þ C.A: +The auditor should recommend that all departments hold a meeting to select the most
reputable supplier.
- The proceeds at the sales counters are not fully remitted to the entity(tiền thu tại quầy chưa nộp hết)
Þ C.A: +print the invoice, compare the amount with the invoice; install the camera
- The debt collector does not pay money to the company but embezzles the proceeds of the customer
Þ C.A: regular debt reconciliation; give signed documents when customers need them.
- Received a missing quantity of goods when making a purchase
=> C.A: +send a letter confirming the number of goods to the shipper and attach it to the invoice; Double
check the number of goods when purchasing
Chapter 3: INVENTORY
Các transaction
• Exintence: physical observation/control of inventories/ witness the
stock-take(chọn mẫu để ktra lại)
- Ngoài ra, thủ tục khác: để tăng độ tin cậy của việc kiểm kê thì cần có
danh sách đi thực hiện, không có số lượng các mặt hàng kiểm kê để
khi đối chiếu với sổ sách sẽ không có việc gian lận(viết số lượng trước
để khớp với sổ sách). Có 1 người độc lập(không liên quan đến kho
hoặc thủ kho) để kiểm kê, có kế hoạch kiểm kê rõ ràng về thời gian
• Completeness