COMPLETING THE AUDIT OF REVENUE FROM SALES OF GOODS AND SERVICES IN AUDITING FINANCIAL STATEMENTS AT U&I AUDITING CO., LTD-HA NOI BRANCH (Nguyen Dac Minh)

3. Research object and the scope of the study.

- Research object: Auditing revenue from sales of goods and services in auditing financial statements.

- Research scope of the topic:

+ Space: Auditing Revenue from sale of goods and rendering services in the financial statement audit at U&I Auditing Co., Ltd., where the audit subjects are independent audit members.

+ Time: For the audit start from 1stJanuary to 31th March 2023 at clients whose accounting periods end at 31.12.2022

CONTENTS:

INTRODUCTION ................................................................... 1

1. The significance of the thesis .................................................................. 1

2. Aims of the study .....................................................................................2

3. Research object and the scope of the study. .............................................. 2

4. Methodology. ........................................................................................... 3

5. Design of the study .................................................................................. 3

CHAPTER 1: LITERATURE REVIEW ON AUDIT OF REVENUE

FROM SALES OF GOODS AND SERVICES IN AUDIT OF FINANCIAL

STATEMENTS IMPLEMENTED BY INDEPENDENT AUDIT

COMPANIES ................................................................................................. 4

1.1. OVERVIEW OF REVENUE FROM SALES OF GOODS AND

SERVICES. ................................................................................................. 4

1.1.1. Defination .................................................................................... 4

1.1.2. The position and meaning of the Revenue from sales of goods &

services ..................................................................................................... 4

1.1.3. Organization of accounting work and internal control activities

of sales of Goods & Service revenue. ...................................................... 6

1.1.3.1. Principles of determining, time to recognize revenue ............. 6

1.1.3.2. Documents ............................................................................... 7

1.1.4. Internal control activities (control functions) for the Revenue

from sales of goods and services. ....................................................... 10

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1.2. OVERVIEW OF AUDIT OF REVENUE OF SALES OF GOODS

& SERVICES IN THE AUDIT OF FINANCIAL STATEMENTS

PERFORMED BY INDEPENDENT AUDIT. ........................................ 12

1.2.1. Objective of audit of Revenue of sales of goods and services 12

1.2.2. Basis for audit of revenue from sales goods & service. ...........14

1.2.3. Common misstatements when auditing the revenue of sales

goods & services .................................................................................... 15

1.3. AUDIT PROCESS OF SALES OF GOODS & SERVICES

REVENUE IN AUDIT OF FINANCIAL STATEMENTS

IMPLEMENTED BY INDEPENDENT AUDIT ..................................... 16

1.3.1. Audit planning stage. .................................................................. 17

1.3.1.9. Making audit program............................................................ 30

1.3.2. Implementing the audit stage .................................................... 31

1.3.2.5. Perform tests of controls with sales and service revenue ...... 32

1.3.2.6. General analysis for the revenue from sales of goods and

services ...............................................................................................35

1.3.2.7. Implementing the inspection procedures on revenue from

sales of goods and services. ................................................................ 38

1.3.3. Finalizing the audit .................................................................... 42

CHAPTER 2: ACTUAL SITUATION OF THE AUDIT OF REVENUE

FROM SALES OF GOODS AND SERVICES IN THE AUDIT OF

FINANCIAL STATEMENTS PERFORMED BY U&I AUDITING CO.,

LTD - HANOI BRANCH. ........................................................................... 47

2.1. OVERVIEW OF U&I AUDITING CO., LTD –HANOI BRANCH 47

2.1.1. History of company and the development ................................ 47

2.1.2. Organizational characteristics of the management apparatus of

U&I Auditing Co., Ltd - Hanoi branch. ................................................ 48

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2.1.3. Characteristics of organization of production and business

activities, main rendering of services by the Company ......................... 50

2.1.3. Organizational characteristics of audit work at U&I Auditing

Co., Ltd .................................................................................................. 52

2.1.3.1. Characterist of the audit approach ......................................... 52

2.1.3.2. Organizational characteristics of the audit team .................... 53

2.1.3.3. Organizational characteristics of audit records ...................... 54

2.1.3.5. General process of auditing financial statements of U&I

Auditing Co., Ltd ................................................................................ 56

2.2. ACTUAL SITUATION OF THE AUDIT PROCESS OF REVENUE

FROM SALES OF GOODS AND SERVICES IN THE AUDIT OF

FINANCIAL STATEMENTS PERFORMED BY U&I AUDITING CO.,

LTD - HANOI BRANCH ......................................................................... 60

2.2.1. Introduction about the audit of financial statements of XYZ

clients performed by U&I Auditing Co., Ltd - Hanoi branch ............... 60

2.2.2. Actual situation of audit process of revenue from sales of goods

and services items in the financial statements of XYZ Company audited

by U&I Auditing Co., Ltd. .................................................................... 72

2.2.2.1. Planning audit ........................................................................ 72

2.2.2.2. Implementing the audit .......................................................... 79

1.2.2.3. Report the audit ...................................................................... 99

2.3. GENERAL ASSESSMENT OF THE AUDIT REVENUE FROM

SALES OF GOODS AND SERVICESITEMS IN THE AUDIT OF

FINANCIAL STATEMENTS AT U & I AUDITING CO., LTD -

HANOI BRANCH .................................................................................. 102

2.3.1. Strength ...................................................................................... 102

2.3.1.1. General comments on the financial statement audit process102

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2.3.1.2. Comment on the process of auditing the revenue from Goods

and provide Services performed by U&I Auditing Co., Ltd - Hanoi

Branch ............................................................................................... 104

1.2.3. Weakness and Reason ............................................................. 108

2.3.2.1. Weakness ............................................................................. 108

2.3.2.2. The cause of the limitations ................................................. 111

CHAPTER 3: SOLUTIONS TO ENHANCE THE AUDIT PROCESS OF

REVENUE FROM SALES AND SERVICES PERFORMED IN AUDIT

OF FINANCIAL STATEMENTS AT U&I AUDIT COMPANY LIMITED

–HANOI BRANCH .................................................................................. 114

3.1. REQUIREMENTS AND PRINCIPLES FOR COMPLETING THE

AUDIT OF REVENUE FROM SALES OF GOODS AND SERVICESIN

THE AUDIT OF FINANCIAL STATEMENTS PERFORMED BY U&I

AUDITING CO., LTD - HANOI BRANCH.......................................... 114

3.1.1. The requirements for completing an audit................................. 114

3.1.2. Principle for completing. ........................................................... 115

3.2. SOLUTIONS TO ENHANCE THE PROCESS OF AUDITING

SALES OF GOODS AND SERVICESITEMS AT U&I AUDITING CO.,

LTD - HANOI BRANCH ....................................................................... 116

3.2.1. Completing the financial statement audit process ..................... 116

3.2.1.1. Planning phase ..................................................................... 116

3.2.1.2. Audit implementation stage ................................................. 117

3.2.1.3. Finalizing stage of audit ...................................................... 117

3.2.2. Completing the process of auditing the revenue from sales of

Goods and Services .............................................................................. 118

3.2.2.1. Planning phase ..................................................................... 118

3.3.2.2. Audit implementation stage ................................................. 120

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3.3.2.3. Finalizing stage of audit ...................................................... 123

3.3. CONDITIONS FOR IMPLEMENTING SOLUTIONS ................. 124

3.3.1. On the side of State agencies and professional associations ..... 124

3.3.2.When it comes to the auditing company .................................... 125

3.3.3. Interms of the clients ................................................................. 126

3.3.4. On the auditor's side .................................................................. 126

CONCLUSION ............................................................... 129

LIST OF REFERENCES ............................................................... 130

APPENDIX

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