tóm tắt tiếng anh hoàn thiện kiểm toán báo cáo tài chính của các công ty niêm yết trên thị trường chứng khoán việt nam

MINISTRY OF EDUCATION
NATIONAL ECONOMIC UNIVERSITY
‐‐‐‐‐‐‐‐*‐‐‐‐‐‐‐‐


Nguyen thi my



Thesis topic: Improving the audit of financial
statements of listed firms
in the Vietnam Stock Market

Major in Accounting (Accounting, Auditing and Analysis)

Code: 62.34.30.01













HA NOI, NAM 2012


RESEARCHISFINALIZEDAT
NATIONALECONOMICUNIVERSITY

INSTRUCTOR:

1. Prof. Dr. Nguyen Quang Quynh

2. Dr. Nguyen Thi Phuong Hoa

Appraisal1: Prof. Dr. DOAN XUAN TIEN
STATE AUDIT OFFICE OF VIETNAM


Appraisal2: DR. NGUYEN HUU ANH
NATIONAL ECONOMICS UNIVERSITY


Appraisal3: dr. LUU DUC TUYEN
FINANCI AL OF ACADEMY
ThethesisisprotectedandmarkattheCounciloftheStateat
NationalEconomicsUniversity

Response to day month year 2012

Thesiscanbefoundat:
‐NationalLibrary
‐LibraryoftheNationalEconomicsUniversity


1

INTRODUCTION
1. The Urgency of the Topic:
Nowadays, many companies choose to expand the capital market through the Stock
Exchange (stock market) which is a channel to attract capital potentially and
effectively with the participation of both domestic and foreign investors. Among the
information provided on the stock market, accounting information is offered in the
forms of financial statements (FS) which supply information and particularly play an
important role: they have a great influence on the relationship between supply and
demand of securities, are the motivation for the investors’ decision to buy or sell on
the market after analyzing published financial statements. One of the factors
contributing to investors’ trust in published information of listed companies is
financial auditing activities of these companies. According to Vietnam’s Securities
Law, financial statements of listed companies on stock market have to be audited
annually by independent auditors in order to enhance honesty, rationality and
legitimacy of public information of the organizations listed on the stock market.
The stock market is still at the starting point and there are a lot of complicated
changes: The rise in the number of listed companies has resulted in the
diversification, abundance and complexities of commodity on the stock market. In
addition, listed companies also have to face the fact that the attraction and expansion
of capital markets is now very difficult because of both objective and subjective
reasons. This circumstance, along with the trend of world economic integration in
general and audit in particular requires to specify arguments for auditing financial
statements the listed companies and improve the quality of audit operation.
Recognizing the urgency mentioned above, the author confidently went into a
research thesis with the topic "Improving the audit of financial statements of listed
firms in the Vietnam Stock Market".
2. The Research Objectives:
This research specified the general theory of the stock market, activities of the
listed companies on the stock market. It researched and developed the theory of
the financial audit for listed companies from other countries and the similar

international experience that maybe applied to Vietnam. On that basis, the thesis
analyzed the current status of the financial audit of listed companies on the stock
market, assessed the achievements, the existence and the cause of the limitations
in the audit of the financial statements from companies listed on Vietnam’s stock

2
market. From the theoretical and practical study, the authors pointed out the
solutions and recommendations to improve financial audit of listed companies on
the stock market.
3. The Object and Scope of the Study:
In terms of the object researched, the thesis topic focused on researching financial
auditing theory of the companies, and then deeply going into the audit of the financial
statements of listed companies on the stock market.
The scope of research topics focuses on the financial auditing operations of the joint
stock companies listed on the stock market conducted by the independent auditing
company.
4. Research Methodology
On the basis of the methodology of dialectical materialism, the thread applied the
common methods such as acquisition of information, synthesis, analysis, statistics,
thereby making the basic case of audited financial statements from listed companies
on the stock market. More specifically, on the basis of the accumulated knowledge in
combination with the reference materials at home country and abroad in this field, the
author analyzed and synthesized to complete general theory of auditing the financial
statements of the listed companies on the stock market. In practical study, topical
application of specific methods are used such as do surveys, aggregate and analyze
the situation of the audited financial statements of the companies listed on the
Vietnam’s stock market.
5. The Structure of the Thesis
Besides the Introduction and Conclusion, the thesis consists of three chapters:
Chapter I: General Theory of the audit the financial statements of companies listed on

the stock market;
Chapter II: Current situations of audit the financial statements of companies listed on
the Vietnamese stock market;
Chapter III: The direction and complete solution for audit the financial statements of
companies listed on the stock market in Vietnam.


3
CHAPTER I:
GENERAL THEORY OF THE AUDIT OF FINANCIAL STATEMENTS OF
THE COMPANIES LISTED ON THE STOCK MARKET
1.1. Stock market and those companies listed on the stock market with the
management:
1.1.1. Overview about the stock exchanges:
Securities market plays an important role in capital market to raise the funds from
each social saving capital to large capital long-term financing for enterprises,
investment projects, economic organizations and the State to develop the production,
strengthen the economy. The stock market is the place that securities are issued and
exchanged.
1.1.2. The Company listed on the stock market:
Listed companies are issuers of securities on the stock market.
Thus, the characteristics of the listed companies’ impact on the audit are reviewed on
a number of main aspects:
Firstly, listed companies are joint stock companies.
Secondly, listed companies may issue securities under the two types of stocks and
bonds to the public; the number of Shareholders in listed companies are quite
complex and change from time to time, it is therefore difficult to control and manage;
Thirdly, the capital raise of listed companies may be conducted under a variety of
forms and highly effective: through bank loans and the stock market;
Fourthly, to the publicized information in general and financial information in

particular from listed companies, it must comply with strict regulations on the
financial and accounting regulations of the stock market;
Fifthly, when the securities listed on the stock market, the number and qualifications
of people interested in the financial information of the Listed companies are quite
large and complicated;
Sixthly, the listed companies' operations will be managed closely from many legal
systems that inside and outside the company;
Finally, business characteristics of the listed companies are complex and diverse.
Listed companies can participate in a variety of business activities (groups,
corporations) lead to high risks in business and management.

4
1.2. General theory of the audit of financial statements of companies listed on
the stock market
1.2.1. The common features of the audit of financial statements of companies
listed on the stock market
1.2.1.1. Overviews of the audit of financial statements:
“The audit of financial statements is to verify and express opinions on the financial
statements of the unit by qualified auditors who have adequate expertise to follow the
effective legal system."
1.2.1.2. Audit objects in the audit of financial statements of listed firms in the stock
market:
Financial statements of the listed companies must still meet the basic requirements of
normal financial statements businesses about compliance guidelines, on how to
establish, on the basis of forms, the type of report, about the time of filing the report
In addition, the operation characteristics of the listed companies lead to the specific
characteristics of the financial statements of the listed companies:
First, the number and qualifications of those who are interested in information on the
financial statements of the listed companies are diverse and complex;
Second, the complexity of preparing and presenting the financial statements of the

listed companies with many industries and business areas;
Third, due to the number of shareholders of the listed companies which are large and
continuously variable. Therefore, the professional track and report of the details of
equity according to the specific object on the accounting books are very difficult;
Fourth, a number of financial indicators appear only on the accounting books and
financial statements of joint stock companies in general and Listed companies in
particular;
Fifth, the Listed companies with many shareholders and constantly changing, it will
affect the operation of the company (for example, when changing strategic
shareholder or shareholders), and at the same time the distribution of profits therefore
meets complicated;
Sixth, those listed companies always exist in many complex financial relationships,
then to track and identify the stakeholders or to consolidate financial statements is
very difficult;

5
Seventh, the number and qualifications who are interested in information on the
financial statements of the listed companies.
The characteristics of the financial statements of the listed companies in the stock
market above greatly impact on the audit of financial statements of listed firms in the
stock market Specifically:
First, affect the planning of the audit;
Second, impact the auditing operation;
Third, affect the synthesis and report of audits (audit statement);
Fourth, influence to the responsibility of the auditors;
Fifth, the auditors have to conduct and review the semi-annual or quarter financial
statements of those companies listed on the security exchange.
The Approach method to the audit of financial statements of listed firms in the stock
market
1.2.1.3. for the companies listed on the stock market:

The audit approach to audit financial statements of the listed companies is risk-based
approach (business risk of listed companies) and system-based approach (internal
control system of listed companies).
1.2.1.4. The object of the audit of financial statements for the listed companies:
The overall objective of auditing the financial statements of the listed companies is to
express a confirming opinion to the preparation and presentation of the financial
statements of those listed companies on the basis of standards, the current or accepted
accounting regime, the provisions of the Securities Commission and the relevant
compliance with the true and fair view in all aspects of the information reflected on
the financial statements.
1.2.2. The process of auditing financial statements of companies listed on the
stock market:
• Step 1: The preparation stage of audits:
First: Prepare the audit plan.
Second: Collect baseline information.
Third: Crawl legal obligations.
Fourth: Perform analytical procedures.
Fifth: Assess significance and audit risk.

6
Sixth: Find out and evaluate internal control system.
• Step 2: The period of performing audit.
First: Implement the control experiment.
Second: Perform analytical procedures.
Third: Check the balance and the number of the incurred items in detail.
• Step 3: The end of audit period.
1.2.3. Auditing a number of features in the audit of financial statements of listed
companies:
First, audit the owner’s equity and funds.
Second, audit the profits sharing.

Third, audit the consolidated financial statements.
The selection of the audit comes from the complexity and risk seriousness of the need
for information of those interested to the content of the financial statements of the
listed companies.
1.3. International experience in the audit of financial statements of companies
listed on the stock market:
About regulations for listed companies on the stock market.
Requirements for financial statements of the listed companies on the stock market.
Approach to the audit of the financial statements of the listed companies on the stock
market.
Procedures of the audit of the financial statements of the listed companies on the
stock market.
Regarding the selection of auditing companies for the audit of the financial
statements of the listed companies on the stock market.




7

Chart 1.3: The process of auditing the financial statements - The World Experience [50,
page 62]
1. The risk assessment and the evaluation of potential customers
Acceptance
to the
customer
Seeking completed
and giving
commitment to audit
2. Implementation of the overall analysis of the company, strategy,

environment
3. The risk assessment of client companies
4. Evaluation for control systems and related processes to identify
risks
9. Forming opinions, assessing the job quality and announcing
reviews for customers and users.
8. Designing direct tests of the balance to reduce the risk of omitted
significant influence information.
7. Risk assessment on the existence of the ability to ignore critical
information
6. Checking the operation of the control system in places that control
systems reduce the ability to ignore critical information
5. Performing analyticalprocedures to determine the ability of the
accountbalance withinthelimits defined
Small account balance or non-risk on
possibility of omitted key information
The account balance level of risk on
possibility of omitted significant
influence information

8
Lesson learned for the audit of financial statements of the listed companies on
the stock market in Vietnam
First, establish the Quality Supervision Committee for Audit to audit of financial
statements companies for listed companies.
Second, construct the cross-checking mechanism between the auditing firms when
auditing listed companies. With quality control mechanism from the auditing
companies (self-test, self-control) and external auditing companies (Supervision
Committee, professional associations and other auditing firms);
Third, improve the legal basis for audit of financial statements of the listed

companies.
Fourth, thoroughly apply the approach to audit of financial statements of the listed
companies in the direction of risk.
Fifth, complete the financial statements of the listed companies.


9
CHAPTER 2
CURRENT SITUATIONS OF AUDITING THE FINANCIAL STATEMENTS
OF COMPANIES LISTED ON THE VIETNAMESE STOCK MARKET
NOWADAYS
2.1. The Characteristics of the Vietnam’s securities market and the companies
listed on the Vietnam’s Stock market in relationship with the audit of financial
statements:
2.1.1. The overview of Vietnam’s Securities market:
2.1.2. The companies listed on the Vietnam’s Stock market:
The foundation, development and specific requirements of the stock market and listed
companies on this market have formed the characteristics when audit financial
statements of the listed companies on the stock market. The confusion of the
correlations in the operation of the listed companies, the sensitive nature of the
capital mobilization of the listed companies and especially the essential information’s
transparency of listed companies are urgently required by investors and other
interested groups of people.
Due to the regulations on Vietnamese Stock Market, the vital conditions for the
progress of being listed on Stock Exchange, Securities Trading Centers are stipulated
in details under the provisions of the Securities Act of 2006 and Decree No.
14/2007/ND-CP, signed by the Prime Minister dated 19/1/2007 detailing the
implementation of a number of articles of the Law on Securities.
2.2. The situation of auditing the financial statements of companies listed on the
Vietnam’s stock market:

2.2.1. General traits of the audited financial statements of companies listed on
the stock market in Vietnam:
2.2.1.1. Comprehensive of the organization situation of current auditing financial
statements in Vietnam:
Auditing financial statements is sector characterized by independent audit when
independent audit are auditing organizations launched firstly at the beginning stage in
Vietnam. The advancement of the independent audit will be shown in Table 2.3.
2.2.1.2. Characteristics of financial statements of listed companies compared to the
audit of financial statements of companies listed on the Vietnamese stock market:
About the characteristics of financial statements of listed companies:

10
Basically, the financial statements of those companies listed on Vietnamese stock
market still have the same features as ones in the world. However, based on the actual
operation of the listed companies on the stock market, the financial statements of the
listed companies have the specific following characteristics:
Firstly, there are 4 parts of financial statements: balance sheet, income statement,
cash flow and notes of financial statements (report of the increase or decrease of
equity is just a part of the notes to the financial statements, not separated as an
independent report in financial statements);
Secondly, the content of establishment and presentation of financial statements in
accordance with the State of Vietnam (Accounting Law, Accounting Standards and
other legal documents of Vietnam);
Thirdly, the financial statements of the listed companies in Vietnamese stock market
must meet the requirements specified by the State Securities Commission of Vietnam.
2.2.1.3. The legal basis for the audit of financial statements of companies listed on
the stock market Vietnam:

Figure 2.1: Summary of the direct legal basis for the activities of auditing the
financial statements of the listed companies in Vietnam.

Thelegalbasisfor
theauditingobjects
Thelegalbasisfor
theaudited
objects
Thelegalbasisfor
theauditentity
Constitutionof1992 Constitutionof1992 Constitutionof1992
AccountingLaw
2003
‐LawonEnterprises
2005
‐SecuritiesLaw2005
Independent
AuditAct2011
‐International Financial
Reporting Standards
(IFRS)
- Accounting Standards
of Vietnam
- Accounting Regime of
Vietnam
- The decrees and
circular guiding to the
accounting regime
‐DecreeNo.14/2007/ND‐
CPstipulatesanumberof
articlesoftheLawon
Securities
‐Circular09/2010/TT‐BTC

guidancetopublish
informationonthestock
market
‐International
Standardson
Auditing
‐Standardon
AuditingSystemof
Vietnam
‐Decision
89/2007/QD‐BTC

11
To have the reliable data for a specific description on the audit situation of the
financial statements of the listed companies on the stock market and then give an
evaluation of the audited financial statements of listed companies, authors conducted
a review of audit records and participate in auditing the financial statements of the
listed companies in some auditing firms such as AASC, A&C – Hanoi branch,
Deloitte Vietnam, AASCN – Hanoi branch,… In particular, on the basis of the study,
by classified according to appropriate criteria, author proceeded to send the
questionnaires to the audited object and audit entity (listed companies and auditing
firms). For a survey to auditing firms, the author sent to the Director, the Head and
members that directly audit the financial statements of the listed companies.
For a survey to listed companies, author sent to the Chief Accountant (or Chief
Financial Officer) or Supervisory Board or Board of Director. In addition to direct
interviews, the authors sent questionnaires to 75 objects in auditing firms and 60
listed companies. The results are shown in Table 2.4:
Table 2.4: Results from sent questionnaires
No. Subject to investigation
Total surveys

were sent and
interviewed
Total
surveys
collected
back
%
I Group of auditing firms 75 68 90.7%
1 Companies listed on stock
market
60 53 88.3%
a Chief or higher 20 18 90.0%
b Members of the audit team 40 36 90.0%
2 Other auditing firms 15 14 93.3%
a Chief or higher 10 9 90.0%
b Members of the audit team 5 5 100.0%
II LISTED COMPANIES 60 35 59%
Specific results please visit Appendix 03a, 04.05

12
2.2.2. The implementation of audit process of the financial statements of the
companies listed on the stock market in Vietnam:
The audit process of the financial statements of the companies listed on the stock
market still complies with the general 03-stage process: (from VACPA)
(1) Plan the audit;
(2) Perform the audit;
(3) Synthesize, conclude and report.
In the process of application, however, depending on each different company, the conduct
of the specific content will be different. Within the thesis, the author divided auditing firms
into two groups to analyze on the implementation of audit process of the financial

statements of the listed companies on the stock market.
Group 1: Group of auditing firms is BIG FOUR’s Members
Group 2: Auditing firms group is not the BIG FOUR’s
Here is the process and working papers of audits in the auditing company in Vietnam.
Group 1: Group of auditing firms is BIG FOUR’s Members
Regarding BIG FOUR auditing firms, the approach to audited financial statements of
listed companies follows the direction of identification, assessment and risk
management, therefore audit process of the financial statements of listed companies
by BIG FOUR auditing companies shall comply with table 2.5

13
Table 2.5: Process of auditing the financial statements of companies listed at the BIG
FOUR.
Work done
b
efore
performing the audit
contract
Accepted risk’s evaluation of the audit contracts
Set the audit team

Make comprehensive
audit plan and identify
risks
Make Strategic audit plan
Explore customer and business environment
Learn about the internal control system
Learn about the accounting cycle
Perform preliminary analytical procedures
Establish the significance and risk

Make detailed audit
plan and risk
assessment
Aggregate to evaluate risks and audit plan
Planning procedures to check the performance o
f

operating efficiency of the internal control system
Planning audit in details
Synthesize and discuss on audit plan

Perform audit plan Implementation the test procedure to check the
performance of the internal control system about
operating efficiency
Perform basic tests and evaluate results
Assess faults in general and the scope of the audit
Review the financial statements

Finish the auditing job
and report audit
Review the events taking place after the end of the fiscal
year
Collect explaining letter from the Board of Directors
Synthesize records and writings
Release the audit report
The work performed after
the audit contract
Assess the quality of contract



14
Group 2: Auditing Companies not in the BIG FOUR group.
For auditing firms not in the BIG FOUR, approach to audited financial statements of
the listed companies bases on system. Therefore, the process of auditing the financial
statements of the listed company on the map No. 2.3:





Chart 2.3: The process of auditing the financial statements of the listed companies –
auditing companies not in the audit BIG FOUR group.
2.2.3. The situation of auditing the item of owner’s capital, the profitability item
and consolidated financial statements in the audited financial statements of
listed companies:
Within the limit of the thesis, the author goes to the presentation of process to audit
some of the specific nature of audit of the audited financial statements of the Listed
companies (as discussed in Chapter 1- thesis), including:
Audit items of equity (capital owners and investment funds)
Audited profit and profit distribution
Audited consolidated financial statements
2.2.3.1. Audit items of equity:
* Group audit firms belonging BIG FOUR
For Ernst & Young Vietnam
For DELOITTE Vietnam
* Those audit companies not in the BIG FOUR
For audit company AASC
For audit company A & C
2.2.3.2. Audited profit and profit distribution:
AUDIT COMPLETION PERIOD

AUDIT PERFORMANCE PERIOD
AUDIT PREPARATION PERIOD
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15
* Group audit firms heading BIG FOUR
Working papers contents of auditors about the profit on items are in Appendix No. 08.
* The audit company not in the BIG FOUR
Specifically, it is presented on the audit program of the profit item and paper work in
Appendix No. 8.
2.2.3.3. Audited consolidated financial statements:
* Group audit firms heading BIG FOUR
* The audit company not in the BIG FOUR
The content of auditing the consolidated financial statements is illustrated in
Appendix No. 8.
2.3. General assessment of reality of the audited financial statements of
companies listed on the Vietnam’s stock market:
2.3.1. The achievement of the audited financial statements of companies listed on
the Vietnam’s stock market today:
First, auditing activities are more professional;
Second, issue samples of audit program;
Third, auditing staff is always improved;
Fourth, enhance inspection before and after auditing activities: reviewing system of
auditing firms is implemented through a lot of working steps:
During audit preparation
During the audit period
In the end of the audit period
Period after the release of the audit report:
Fifth, Positive integration to auditing activities in the world
Sixth, the legal system has been basically completed and still improving
Seventh, quantity and quality of auditing company increasingly strengthened.

2.3.2. The limitations of the audit financial statements of companies listed on the
Vietnam’s stock market today

16
2.3.2.1. The restrictions on the financial statement audit process of the listed
companies
First, in the preparation of the audit
For both groups auditing company:
+ On the survey at the customers before signing the contract;
+ Determining the audit period is limited.
For the group auditing companies those are not in the BIG FOUR
+ The conduct of the audit plan and audit program design based almost intact the
designated program with no changes specific to each client;
+ The selection of staff: experiences of skilled technicians have not been paying
attention, auditors’ capacity not really be a priority.
Second, during the audit: audit procedures to techniques such as technical inventory,
sending a confirmation and sampling techniques have not been implemented fully
and properly. Specifically:
For both groups of auditing companies
+ Regard to technical inventory
+ Technique of sending a confirmation mails.
For auditing companies of the BIG FOUR group: the application of sampling
techniques for auditing companies not in the BIG FOUR
+ Apply sampling techniques
+ Control the quality of the audit process
+ Critical evaluation process is not done properly
+ Audit procedures for the balance at the beginning of the year of financial statements
in the case of other audit firms auditing last year
Third, in the end of the audit period
For both groups of auditing companies

+ Audit procedures to evaluate the continuous operation of listed companies
+ About the audit report and the auditor's opinion form.

17
2.3.2.2. The restrictions about the audit approach in the process of auditing the
financial statements of companies listed on the stock market Vietnam
For auditing companies of the BIG FOUR group: the application of the audit
approach to the risk but not really effective.
For auditing companies not in the BIG FOUR: at present, this group of auditing
companies mostly use audit approach based on system.
2.3.2.3. The restrictions about the content of some basic items of audit and legal basis
for auditing the financial statements of companies listed on the stock market Vietnam
Firstly, about auditing the profit distribution; for both group of audit to consider the
distribution of profit to the written provisions of the general meeting of shareholders
but is not interested in the relevance of it with the production and business activities
(standing on shareholder interests).
Secondly, about auditing the consolidated financial statements; There is no audit
program of the consolidated financial statements for companies that are not in the
BIG FOUR.
Thirdly, on the legal basis for the audited financial statements of listed companies, the
legal system has not been completed; it still faces many problems and difficulties in
application and not strictly abides by objects.
2.3.3. The causes of limitations in the audit financial statements of companies
listed on the Vietnamese stock market
Subjective reasons:
Initially, on the auditing company, they do not ensure the quality control mechanism
comprehensive audit and full, close and effective building audit process.
Second, auditors have not actively raised the level of expertise.
Objective reasons:
First, on the side of the listed companies those are not properly aware of their

responsibilities and rights in the preparation, presentation and disclosure of
information on the financial statements.
Second, the State has not built a synchronous legal basis.

18
CHAPTER 3
THE DIRECTION AND COMPLETING SOLUTION FOR AUDIT THE
FINANCIAL STATEMENTS OF COMPANIES LISTED ON THE STOCK
MARKET IN VIETNAM

3.1. The necessity and direction of complement audit the financial statements of
companies listed on the stock market in Vietnam
3.1.1. The necessity complete audit the financial statements of companies listed
on the stock market Vietnam
The development and social - economic integration in general and the stock market in
particular.
Improve the quality of audit financial statements in general and audit financial
statements of companies listed on the stock market then from that gradually integrate
with the world’s audit accounting system.
3.1.2. Orientation to complete the audit financial statements of companies listed
on the stock market in Vietnam.
Firstly; comply with general legal provisions on auditing, about Vietnamese stock
market.
Secondly; ensure compliance with the country's economic growth and development
of the Vietnamese stock market.
Third; Ensure appropriate audit development in general and the financial statement
audit in particular with the trend of global integration.
3.2. The complete solution of audit financial statements of companies listed on
the stock market Vietnam
3.2.1. Improve the relevant legal basis audit financial statements of companies

listed on the stock market Vietnam
The legal basis of the financial audit for the listed companies is a system of
provisions, regulations and standards on accounting, auditing, securities and other
legal documents related depending on the fields of activities of the listed companies
on the stock market The finish is needed on some points as follows:
First, about the organization of promulgating auditing standards in specific;

19
Second, when adopting guidelines Independent Audit Law, it requires specific
guidelines on the independence of auditors and the legal framework and deterring
high enough to minimize errors in career;
Third, the system should be complete soon and give specific auditing standards which
are revised into execution;
Fourth, guidelines to profession ethical standards should be issued.
3.2.2. Improve the content and approach of audits in the process of auditing the
financial statements of companies listed on the Vietnam’s stock market.
First of all, improve the general audit process by using audit approach
For auditing firms of BIG FOUR, risk-approach has been made, however, it
needs to be taken seriously and is necessary to have parts to study the
environmental impact of the operation, object, audited objects in Vietnam to
guide on how to apply that methodology of corporations to avoid the imitated-
servile application.
To the remaining auditing companies, there should be specific guidelines and
training for auditors to approach the financial statements of listed enterprises in
direction of risk.
Next, complete contents in the periods of the audit process of auditing financial
statements of the listed companies on the stock market.
First: audit preparation period
+ Step of evaluating the audit acceptability
+ Audit program design step

Besides, determine the audit procedures (Table 3.7)
Next, determine the audit period
Additionally, the auditing enterprises should plan on audit personnel that fit the
characteristics of the listed companies' and auditors’ experience.
Second, audit performance period
The completion of the application of techniques and audit procedures in the audit
process contribute to raising the quality of audit evidence in auditing the
financial statements of the listed companies.
+ Complete the application of statistical techniques;
+ Use confirming mailing techniques;
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+ Apply techniques of audit sampling.
About the sampling software, companies should build appropriate software with
auditor level, economic circumstances and environment of Vietnam. Specifically:
For group auditing company - BIG FOUR: Need to modify the software
according to specific sampling of customers in Vietnam, it therefore will create
favorable conditions for auditors in gathering audit evidence, clearly raise quality
audits of the Company;
For those auditing companies have no specific sampling software, they can apply
sampling techniques to evaluate the statistical properties the effectiveness of the
internal control system of customers to overcome the disadvantages of non-
sampling system statement that the company is implementing. With the
application of statistical sampling techniques, sampling process is somewhat
more complex than non-statistical methods. However, with the application of
statistical sampling techniques attribute in the control experiment in conjunction
with random sampling software visual basic, this is considered the optimal
sampling techniques as quite effective. (Appendix 9)
Third, audit completion period
+ About audit procedures to assess the ability of continuous operation of

customers
+ On the presentation of the audit opinion in particular and the entire audit report
in general. Auditors and auditing companies should highly improve
accountability and ethics in the judgment to the audit opinion identity except to
avoid the "trap" created for those interested in information of financial
statements from those listed companies. And management agencies such as the
Securities Commission and the Ministry of Finance should soon provide specific
guidelines in the field of general audit and audited financial statements of the
listed companies in particular on the comments exception.
Quantitative factors;
Qualitative factors:
3.2.3. Complete specific parts of the audit of the audited financial statements
of companies listed on the Vietnam’s stock market
First: For the audit of profit division
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When auditing profit division, the auditor should consider the compatibility
between the decisions to split the profits with the business situation.
Second: For the audit of consolidated financial statements
The auditing company needs to specify the audit directions in auditing the
consolidated financial statements of the specific audit program.
3.2.4. Improve the audit quality control and building the company's audit
corporate culture
First, strengthen the quality control of each audit.
Second, create brand and business culture for the Vietnamese auditing company
in the integration process.
3.2.5. Improve the quality of auditors to meet the requirements of economy
integration
First, raise the professional competence and profession discretion for auditors,
this is a crutial factor in the field of auditing.

+ Auditors should ensure appropriate profession discretion.
+ Auditors need to improve occupational qualifications to meet the requirements
of economic integration.
Second, improve compliance with standards of profession ethics.
Third, enhance audit independence in audit operation.
3.2.6. Improve internal control system of the listed companies in relation to
complete the audited financial statements of companies listed on the stock
market
At first is to improve the control environment
+ At first, about the specific management
+ Next is about organizational structure
+ Additionally, about the Supervisory Board
Two is to improve internal monitor-control system.
3.2.7. Complete audit objects in relation to complete and improve the quality of
audited financial statements of companies listed on the stock market
First of all, the complete notes of financial statements: In order to help investors,
shareholders capture the financial situation about production and business activities
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of the listed companies, the accounting systems need the explanation information on
financial report clear and detailed. Specifically:
Ownership equity report (Appendix No. 10)
Regarding the information about the parties involved, the parent company, affiliated
companies also need particular explanation about the variation in investment,
payments, etc.;
Information related to financial analysis
Next, about the disclosure of information for foreign investors
In addition, complete system Vietnamese Accounting Standards in the direction of
integration to world and region.
3.3. The recommendations for solutions to improve audited financial statements

of companies listed on the stock market Vietnam
Recommendations to the State:
First, strengthen the inspection and control of the State management agency of audit.
+ Set up an independent Commission to inspect and supervise the activities of the
listed companies as well as the operation of the audited financial statements of the
listed companies.
+ Consider the standard of auditing firms that is qualified to audit the financial
statements of the listed companies.
Second, enhance the roles of profession organizations and associations; in particular here
is the Vietnam Association of Certified Public Accountants, through the transfer of
certain functions of the Ministry of Finance as monitoring audits for the Association. In
addition, the Association need to deploy the application of the rules professional ethics,
improving the quality of training and exam profession for auditor, so it is able to choose
the good auditors for the development of Audit field in Vietnam;
Third, it should continue to promulgate adequate system of accounting and auditing
standards in Vietnam, shorten the gap between the standards of Vietnam compared to
international standards, and guide the application of standard match the reality.
Recommendations to the auditing firm:
The auditing firms have to improve the quality of auditor team. Furthermore, this
training should be coordinated closely with specialized training in universities to
combine both introduction of practical audits and determination of the important
orientation for students majoring in.
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CONCLUSIONS
Auditing in Vietnam was born just in the transition to a market economy with
socialist orientation. This confirms the need for truthful, reasonable and legitimate
information for government agencies, businesses and individuals in Vietnam is
urgently needed.
Along with the development of the country and of the audit, the year of 2000 has

marked with a turning point in Vietnam's capital market - which is the birth of the
stock market. After more than 10 years in operation, construction and development,
the stock market and the activities of the companies listed on the stock market helped
boost the capital market for Vietnamese companies to new direction. Since then, the
development of the general audit, or the audit financial statements of the companies
listed on the stock market in Vietnam in particular has shown an essential role in the
process of healthy and transparent system with financial information of the listed
companies, then help those who use the information in the stock market to make right
and appropriate decisions.
In this thesis, the author has developed the theory towards specifying the basic
argument of audited financial statements in general into auditing the financial
statements of the companies listed on the stock market on the following aspects: the
legal basis, audit objectives, audit procedures and audit for a specific numbers of item
in the audit of financial statements of the companies listed on the stock market.
On the basis of the argument specified, author directly involved in some of the
audited financial statements of the listed companies and send questionnaires
combined interview to auditors, Board of Directors or Chief of accounting of listed
companies to study the reality operation of the stock market and the listed companies'
activities as well as the characteristics of the financial statements of the listed
companies on the stock market to consider the impact on audit quality the of financial
statements of the listed companies on the stock market. Besides, the author goes into
the actual analysis situation of auditing the financial statements of the listed
companies on the stock market through the actual audit research in the listed
companies, survey via audit profiles, and interview the members related to audit the
financial statements of company listed on the stock market. Since then, the author
goes into the analysis, evaluation of the achievements, the limited surface and causes
limitations for auditing the financial statements of the listed companies on the stock
market as base formed proposes and solutions.