Kiểm toán căn bản lập kế hoạch kiểm toán english version

Part 1: rationale
In the framework of the basic audit subject, our study is
an overview of the planning for an audit, not only
focusing on planning the audit of the financial audit, but
also refers to the audit plan for the audit subjects of
internal audit and audit of state
I.

Concepts

audit plan is an arranged or planned systematic way on
the audit plan to do to verify and express opinions on the
status of the auditted.
 Standard No. 300 audit plan (issued under Decision No.
143/2001 / QD-BTC) December 21, 2001 of the Ministry of
Finance)
provides that
audit
plan must be
established for every audit. Audit
plan must be set appropriately to ensure that it covers
the materiality aspects of
the
audit; fraud,
risks and potential
problems
detection, ; and ensure
thataudits are completed on
time. Audit
plan help auditors in
assignment for audit

assistants and coordination with auditors and other
experts on the audit.
Therefore, the audit planning is a positive balance
process between needs and resources available, in this
overall audit plan called strategic planning.
II.

Purpose and Significance

To assist the auditors to identify and take appropriate
attention to important areas of the audit, so that auditors
can gather audit evidence, sufficient and valid as a basis


to make comments relevant to the audit objectives. As a
result, these help auditors limit errors, reduce liability and
improve work efficiency ...
• Planning the audit helps auditors effectively coordinate
with each other as well as with the relevant parts, which
makes the cost of an audit at a reasonable level.
• Assist in the selection of the team members involved
with suitable
level of ability and competence to meet the expectations
of risk and liability allocation among group members
• Facilitating the direction and supervision of team
participation
members and evaluate their work.
Conclusion: Planning the audit properly is the basis for
the auditor to collect valuable evidence contributing to
make relevant comments on the status of audit activities,

maintain and enhance the reputation and images of
auditors
III.

The basic work to plan the audit

Planning an audit is the specification of audit objectives
and scope of audit as well as quantificationof the scale
and timing of the audit, respectively.


To balance between needs
and resources,
the
determination needs to
be done mainly
by specifying the objectives and scope of the expected
audit . Specifying this should in
the first
define the specific work to be done and on that basis
to quantify the
scale used
to determine the time and the
corresponding audit (quantitative). To
achieve both
processes, it is necessary not only to specify and
correctify objectives and
scope of the
audit,
but

also identify possible sources of information.
Based on a review of the above relationships, it is
necessary to calculate the number of people, vehicles
and
duration
to
perform
audit
work.
The number of participants in the audit should be
considered in terms of the total number of people and
structures.Total
number
of
people
must
be
commensurate with the scale of audit in general. The
structure of the working groups must adapt to the
specific work. Whose goals and scope have been
correctified accurately, in the part of determining the
needs.
Example 1: Choosing sample check certificate needs
auditors who are experienced and know the tax laws
cleary, understand cleary about the object of audits to
assess which operating section may contains many
risks. Then the auditor will guide assistant to check bill
specifically about the content on the bill such as the
total value of goods and services, tax and total amount,
invoice number ...

Example
2: the inventory should include
enough personel
who
have
knowledge of specific subjects of the inventory such as
food , food, petroleum,
textiles ...
Therefore, the
task of planning the
audit is
to
determine
the specific amount,structure, quality of
personel and the means corresponding to the volume
of audit
tasks.
Similarly, the time limit for implementation of
the audit should set specific time
limits
for
both common as well as necessary deadlines and time
of each specific job
assigned to each person.
On the basis of the specific calculations of the number
of
people, means, time, the audit should determine
thefunding needed for each

audit. This
work
should need particular attention of the independent
auditors in relation to the customer.
Planning of each audit must also be built to suit each
type of audit. According to the provisions of Article 36.
"type of audit" of the Law on State Audit audit forms
include:
+ Audit of Financial Statements;
+ Compliance Audit;
+ Audit activities.
Typically, independent auditors often audit of financial
statements, audit state is auditing link between the
financial statement audit and but compliance audit is


still mainly, internal audit focused on activity- efficiency
and performance.
Note: In the independent audit, the audit plan should
be specified through the audit contract, which
stipulates the responsibilities and rights of each party
both in the preparation and implementation of audit
plan.

Part II) planning the audit of the financial audit
1. Legal basis:
- Vietnam Standards on Auditing (VSA) – Standard 300audit plan, standard 220, standards 400 and 240…
- widely recognized Auditing Standards GAAS
- ISA
2. Knowledge

To ensure the efficiency, economy and effectiveness of
each audit, as well as to collect sufficient and valuable
audit evidence as a basis for the auditor's conclusions
about the truthfullness and fairness of data on the
financial statements, audits are usually conducted in
accordance with the following three phases: +,
complete audit and publish the audit report.


planingand
completingaudit publishtheaudit
designingaudit
plan report
methods
• Map: planning and designing audit methods

Prepare audit plan

Plan an overall audit
and compose audit
program

Accumulate basc
information

Accumulate liability info of
customer

Assess essentials, risks of
audit

Find out internal
control statics


planning the audit is the first phase that the auditor
needs to perform in each audit to create the legal
conditions as well as other necessary conditions for the
audit.
The audit plan has been clearly stated in the current
Auditing Standards. Standard 4 in 10 widely recognized
Auditing Standards (GAAS) requires audit work must be
fully planned and assistants, if any, must be properly
supervised. Section 2 in 300 International Standards on
Audit(ISA) also stated clearly that auditors need to plan
for the audit in order to ensure that audit were carried
out effectively.

 Scope of audit plans varies according to scope of the
client, the complexity of the audit, experience and
understanding of the auditors of the audited unit and
its operations.
 When planning the audit, the auditor must
understand the operation of the unit being audited to
identify the events, transactions that may critically
affect the financial statements.
 auditors and audit firms are responsible for planning
the audit. To schedule an audit, the auditor has the
right to discuss with the internal auditors, directors and
employees of the audited entity on matters relating to
the audit plan and audit procedures to improve the

efficiency of the audit and coordinate the work with the
staff of the audited units.
 audit plan consists of three (3) parts:
- Strategic Plan;
- The overall audit plan;
- Audit program.
Strategic Planning
1. The strategic plan must be set for the audits of large
in scale, complexity, large area or financial statements
for many years.
2. The large-scale audit is an audit of financial
statements synthesis (or the consolidated financial
statements) of the Corporation, under which are many
companies and units of the same type or different
types of business.
3. A complex-nature audit is that has signs of disputes,
litigation or new activities that auditors and audit firms
do not have much experience.
4. A wide-area audit is of the audit unit that has many
subordinate units located in different provinces,
different cities, including overseas branches.
5. Audit of financial statements for years is that the
audit firm contracted auditors for several consecutive
financial years, ie in year 2000 contract audits in 2000,
2001 and 2002 signed must also be strategic planned
to guide and coordinate the audit between years.

6. At the request of its management, audit firms can
establish a strategic plan for the audit which does not
have the characteristics of provisions from section 13
to section 17.
7. The Strategic Plan outlines the objectives, basic
navigation, focusing content, approach method and
process audit (See Appendix 01).
8. Strategic Plan is established by the person in charge
of the audit and is approved by the director (or head)
company auditor. Strategic planning is the basis of
planning the overall audit, is the basis of the
implementation and review of the results of the audit.
9. Strategic Plan was established as a separate
document or form a separate part of the overall audit
plan.
Planning overall audit
10. The overall audit plan must be established for all
audits, which describes the expected range and how to
conduct the audit. The overall audit plan must be fully,
detailed as the basis for the audit program. The form
and content of the overall audit plan will vary according
to the scale of the client, the complexity of the audit,
specific audit methods and techniques by auditors use.
11. The main problem that auditors need to review and
present of the overall audit plan, including:
Understanding the operation of the unit to be audited:
- Knowledge of economy and general characteristics of
the business areas that affect the audited units;

- The basic characteristics of customers, such as field
operations, financial results and the obligation to
provide information including changes from previous
audits;
- Management capacity of the Board of Directors.
Understanding of accounting systems and internal
control systems:
- The accounting policies that the audited units used
and the changes in those policies;
- The impact of new policies on accounting and
auditing;
- Understanding of the auditors on accounting systems
and internal control system and the important points
that the auditor intend to carry out in controlled trials
Risk assessment and critical level:
- Assess the potential risks, control risks and identify
materiality audit areas;
- Identify the materiality objectives for each audit;
- The possibility of critical misstatement according to
experience of previous years and drawn from the fraud
and common errors;
- Identify complex accounting business and event,
including accounting estimates.
The contents, schedule and scope of audit procedures:
- The changing materiality of the audit area;
- The impact of information technology on the audit;


- The work of internal audit and its impact on the
independent auditing procedures.

Coordinate, direct, supervise and inspect:
- The involvement of other auditors in the audit of the
subordinate units, such as subsidiaries, branches and
affiliated entities;
- The participation of experts from other fields;
- Number of units attached to the audit;
- Require personnel.
Other issues:
- The ability to continually operating business units;
- The special issue to be concerned, as the existence of
related parties;
- Terms of audit
responsibilities;

contracts

and

other

legal

- The content and duration of the audit report or other
notices intended to send to the client.
12. Where the audit firm has established a strategic
plan for the audit, the content outlined in the strategic
plan was not to mentioned in the overall audit plan
(overall audit plan Form Appendix No. 02).
Prepare audit program
13. The audit program should be established and

implemented for all audits, which defines the content,
timing and extent of audit procedures necessary to
implement the overall audit plan.


14. When developing the audit program, the auditor
should consider the assessment of potential risks, risk
control, as well as the level of assurance to be achieved
through basic test. The auditor should consider:
- Time to perform tests of control and basic test;
- The coopertation of the customers, the assistant
auditor of the group and the involvement of other
auditors or other experts. (Sample audit program see
Appendix 03).
The changes in the overall audit plan and audit
program
15. The overall audit plan and audit program will be
amended and supplemented during the audit if there
are changes in circumstances or because of the
unexpected results of the audit procedures. Content
and cause changes to the overall audit plan and audit
program should be clearly stated in the audit record.
16. For the audit firms auditing program in the form
available on the computer or on paper form must
include additional audit program specifically suited to
each audit. /.
3. Planning the overall audit of financial statements
Step 1: Prepare the audit plan
The process begins when the auditors audit firms
acquire a customer. acquiring a customer is a process

consisting of two stages: First, there must be
communication between auditors with potential
customers that request the audit, auditors should
evaluate whether to accept the request or not. For


existing customers, auditors have to decide whether to
continue the audit?
Assess the acceptability of the audit:
The auditor must assess whether to accept or continue
with a client can increase the risks for the operation of
the auditors or lowering the prestige and image of the
audit firm or not? To do that, auditors need to carry out
the work as follows:
• Vietnam Auditing Standards No. 220 Quality Control
for the implementation of one contract audit of a
company audit that the auditor should consider the
quality control system to evaluate the auditing
acceptability. To make the decision to accept or
maintain a client, the auditors need to consider
independence, the ability to better serve our customers
and the integrity of the administrative committee of
corporate and customers.
• Integrity of administrative committee of corporate
and customers.
According VAS No 400 risk assessment and internal
control, the integrity of the board is a materiality
component of the control environment, this is the
foundation for all other components of the internal
control system. therefore integrity of the board is very

important for the audit process because the board may
reflect false transactions or hide information leading to
criticall misstatements in the financial statements.
Additionally VAS No 240 Fraud and errors emphascale
the materiality of the characteristics of the Board and
its impact on the environment as a factor controlling


the initial risk of fraudulent reporting of financial
information.
• Liaise with potential auditors for:
For potential customers:
- If the customer previously audited by an auditor other
new auditors (successor) to proactively communicate
with old auditor (predecessor) since this is the first
source of information to evaluate goods. VAS requires
successor to contact predecessor for potential liability
issues related to the successor decision to accept the
contract audit, including information on the integrity of
the board , the disagreement between the board with
its predecessor auditors on accounting principles,
auditing procedures or other important issues ...
- For customers who have not previously had public
auditing firm to audit, to have the information about
customers, auditors can accquire the information
obtained through the study of books, journals,
verification of the information about coming clients as
banking, legal advice, ...
- For old customers: Every year, auditors update
customer information and assess whether there is any

risk that auditors must stop providing services to them
or not
- The final consideration but the most important
evaluation whether auditors accept or not is the client
‘s audit ability
Identify the reason for the audit of the client:


The materiality of identifying the reasons of guesr
company audit is the determination of whom using the
financial statements and their purpose of using the
reports.
To do that, auditors can live interview board customers
(for new customers) or based on the experience of the
audit that has been done before (for existing
customers).
The determination of financial statement users and
uses of their reports are the two main factors affecting
the amount of evidence to be collected and the
accuracy of the opinion that the auditors made in the
audit report . Specifically, if the financial statements
should be widely used, the level of honesty, rationality
of the information in the financial statements required
to be higher. Therefore, the amount of audit evidence
to be collected as well as the scale and complexity of
the audit will be increased.
Example: In Vietnam today, Circular No. 22 (dated
03/19/1994) of the Ministry of Finance guiding the
implementation of regulations on independent audit in
the national economy. Accordingly:

- The public company listed on the Stock Exchange in
the financial statements must be audited and public
companies must submit financial statements together
with the audit report to the authorities as the
Department's total ...


- Audit before equitization, audit before dissolution,
bankruptcy or merger ...
Thus, through the identification of customer audit by
the audit firm to estimate the scale complexity of the
audit should be carried out from which creates
favorable conditions for the selection of staff
appropriate to perform an audit in the next step in the
planning stage audit.

Choosing a staff audit
Selecting appropriate audit staff for contract not only
achieves the effectiveness of the audit but also adhere
to the GAAS. The first GAA states the audit process
must be carried out by one or more people have been
trained as a fully proficient auditor. The selection was
carried out on the request of number of people, skills
and required technical expertise and often by the
company's board of directors direct audit (audit team
usually has one or two assistants audit, a high-end
auditor, a leader audit).
In the process of selecting staff, audit firms should care
about three issues:
First, the audit team who have the ability to

adequately supervise the inexperienced staff in the
field and this is also the first standard for the audit
client requires.
Secondly, the audit firm should avoid changing auditors
in the audit for a customer for many years.


Participation in audit for a customer for many years can
help auditors accumulated experience and have a deep
understanding of the business of the client being
audited.
Third: the assignment of auditors perform the audit to
note the choice of experienced auditors with
knowledge of customer business sector.
Contract Auditing:
Once you have decided to accept audits for clients and
consider the above issues, the final step in preparing
the audit period that the auditor must reach is a
contract audits. This is a formal agreement between
the auditor and the client on the implementation of
audit and other related services.
Overseas appointment audit letter by auditors often
compose and sent to the client, if the client accepts the
terms of the contract, they will sign the contract and
return the signed copy to the audit firm. in VN, audit
firms and customers often encounter directly,
agreements and contracts signed a contract audit.
In VN, according to VAS 210, the contract must be
audited and signed before the official audit conducted
in order to protect the interests of clients and the firm .

In some cases audit contracts can be replaced with
written commitment.
The content of the audit contract:
 The purpose and scope of the audit


 Liability Company Board of Directors and auditors
customers
 Form of notification of audit results
 Time conduct audits
 Based the audit fees charged and payments
 Identify that auditors are not responsible for errors
due to the nature and inherent limitations of the
accounting system, internal control and audit.
Step 2: Gather basic information
After signing the audit
planning the overall audit.

contract,

auditors

began

a) Find out trades and business of customers
VAS No 300 requires auditors to learn trades and
business activities of customers in section 2 of IAS
No310 led: to achieve financial statements, auditors
must have knowledge of the business situation enough
to realize and determine the facts, and business

practices of the audited units that auditors can review
important impact to the financial statements, ...
The understanding of the business including the
common understanding of the economy, the activities
of units and more specific understanding of the
organization and operation of the unit audits.
AUDITORS also understand the unique aspects of a
particular organization as follows: organizational


structure, chain and manufacturing services, capital
structure, function and location of the internal audit ...
b) Review the results of previous audits and general
audit records
The prior year audit records often contain a lot of
customer information, for business, organizational
structure and other operational characteristics ...
Through this audit will find useful information on
business of customers.
c) Visit the workshop/factory
A tour of the factory, direct observation of production
and business activities of customers will give auditors
things firsthand the production process of the client
company.
d) Identify the stakeholders:
Auditors may be of interest to the presence of
stakeholders on two aspects:
1. All business important transactions are for full
disclosure
2. All transactions between customers and stakeholders

are recorded to reflect the economic substance rather
than the form to reflect the economics of the business.
e) expect demand for external expertise:


ISA No620, Using the Work of an Expert, auditors’ guide
when to use material from external experts. When
using experts, auditors should assess professional
competence, understanding the purpose and scope of
their work
Step 3: Gather information about the legal obligations
of the Customer
 establishment licenses and companies regulations
 The financial statements, audit reports of inspection
or examination of the current year or a few years ago
 The minutes of the meeting of shareholders, the
Board of Directors and Management
 The contracts and important commitments
Step 4: Perform analytical procedures
According 520- VSA analysis procedures - auditors have
conducted the analysis procedures when planning and
checking the validity of the entire FS
Objectives:
1) Gather knowledge of the content of the financial
statements and the significant changes in accounting
and business customers just happened since the
previous audit.


2) To enhance the understanding of the business

AUDITORS customers and help identify the problem
AUDITORS doubts about the possibility of continuous
operation of the client company
The analytical procedures used AUDITORS two basic
types:
 horizontal analysis: analysis is based on comparing
the values of the same indicators FS
 analysis along: that the analysis is based on
comparison of the proportion of targets and various
items in the financial statements.
Step 5: REVIEW AND MATERIALITY RISKS GIATINH
If in the above steps, AUDITORS only collect
anonymous information about customers, the objective
at this stage, AUDITORS will be based on information
collected to assess, review in order to provide a
strategic , audit plan accordingly.
Assessing the materiality:
During the planning stage, AUDITORS to assess
critically to estimate the level of financial reporting
errors acceptable, define the scope of the audit and
assess the impact of the errors on the financial
statements for thereby determining the nature, timing
and scope of the total test. in this review, auditors
should assess the materiality to the entire financial
reporting and the allocation of the assessment for each
item in the financial statements.
These errors may be acceptable to the entire financial
statements:

Initial estimates of the level of materiality and the
maximum that the auditors believe that the financial
statements may be wrong but still not affect the
decisions of users or in other words it is possible
acceptable errors to the entire financial statements.
The original estimate for the materiality helps auditors
plan to collect appropriate audit evidence.
Meaning: the original estimate of materiality is an
anonymous work of AUDITORS professional judgment.
Therefore, the initial estimate for the critical is not
stable but changeable
Note:
-this is a materiality concept of relative rather than an
absolute object, associated with the scale of the client
company.
quantitative element of materiality: the scale of errors
is an important factor to consider whether there are
factors that have significant flaws or not, due to
relativity so the base to get the determine whether a
violation of a scale that has the materiality or not is a
necessity.
- Qualitative factors of significant: in fact to evaluate
the critical flaws or not, auditors should review the
terms of value (quantity) and nature (nature).
 The quality factors should be considered when
conducting the initial estimate of materiality:
- The fraud is often seen as more important than the
mistake with a monetary scale

- The errors which are small but causes domino effect
that adversely affect the information on the financial
statements are considered misstatement.
- These errors that affect the income are always
misstatement.
The table provides for the materiality

Vị trí của
khoản mục

Không trọng
yếu

Có thể trọng
yếu

Chắc chắn
trọng yếu

Báo cáo kết
quả kinh
doanh
Bảng cân đối
kế toán

Dưới 5% lãi
trước thuế

Từ 5% -10%
lãi trước

thuế
Từ 10%-15%
giá trị tài sản

Trên 10% lãi
trước thuế

Dưới 10% giá
trị tài sản

Trên 15% giá
trị tài sản

Allocation of initial estimates of materiality for the
items:
After AUDITORS had originally estimated for the
materiality to the entire financial statements, auditors
need to distribute a quantity for each item in the
financial
statements.
That
is
an
acceptable
misstatement for each item.
The purpose of this allocation is to help auditors
determine the amount of audit evidence relevant to the


income of each item at the lowest cost possible while

ensuring sum of errors on the financial statements.
RISK ASSESSMENT
On the basis of materiality is determined for the entire
financial reporting and allocation for each item,
auditors should assess the likelihood of material
misstatement at the financial statement level of the
whole as well as for each item to serve designing audit
procedures and program development for each
item.this work is called risk audit assessment.
By definition of international auditing guidelines IAG 25,
Materiality and audit risk, audit risk is the risk that
AUDITORS can make when making unwarranted
comments on the financial information That is the main
and serious flaws.
Audit Risk Assessment:
During the planning stage of the audit desire (DAR)
for each item, the risk level is determined depends on
two factors:
degree to which external users are confident in
financial report
capacity to meet customer financial difficulties after
the financial audit report published
Auditors should evaluate the following
three types of risk:


Inherent risks (potential) is a suspicion that the account
balance in a professional account any errors that may
occur assuming that there is no one-step internal
control relevant. Risks relating to the operations and

business lines of customers.
The influencing factors:
The nature of business of the customer
Truthfulness of the Board of Directors
The results of previous audits
Contract Audit Audit times dauva long-term contract
The economic transactions irregular
The accounting estimates
The amount of the account balance
Risk control:
This type of risk is related to the weakness of the
system of internal control. Risk control is the possibility
of material misstatement due to the internal control
system of the customer unit is not working or not
working effectively. Therefore, did not detect and
prevent violations of this
The risk of detection:
the possibility of errors or fraud, but not be prevented
or detected by the system of internal control and not
be detected by the method of audit
In the course of audit detection risk may be due to the
following factors: