Hoàn thiện hệ thống thông tin kế toán tại các công ty cổ phần xây dựng Việt Nam ttta

MINISTRY OF EDUCATION AND TRAINING
VIETNAM UNIVERSITY OF COMMERCE
-------------------------

TRAN THI KIM PHU

IMPROVEMENT OF ACCOUNTING INFORMATION
SYSTEMS OPERATED BY CONSTRUCTION JOINT STOCK
COMPANIES IN VIETNAM

Major: Accounting
No.: 62.34.03.01

Abstract of PhD. thesis in Economics

Hanoi, 2019


This thesis has been completed at Vietnam University of Commerce

Supervisors:
1. Assoc. Prof. PhD. TRAN THI HONG MAI
2. Assoc. Prof. PhD. PHAN DUC HIEU

First member of Thesis Committee:
…………………………………………………
Second member of Thesis Committee:
…………………………………………………
Third member of Thesis Committee:
…………………………………………………

Thesis defense will be taken place in Thesis Committee
Meeting at………..………………….…………
At…….. hour…..…on……........…....... .…..……..

Thesis can be found at:
National Library of Vietnam
Library of Vietnam University of College


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INTRODUCTION
1. Essential of thesis
Nowadays, construction join stock companies in Vietnam search their new
works through tendering methods. It is shown that the competitiveness in
construction is very drastic under criteria, such as competitive price, financial
ability, etc. Each of construction joint stock companies is required to positively
apply applicable management tools in order to improve their competitiveness, in
which accounting information system plays one of the significant factors. A good
accounting information system is a key for planning a strategy for management
and improving operation efficiency of the companies (Chang, 2001). Each of
construction join stock companies should establish an accounting information
system applicable to characteristics and demand of economic management.
Research findings of accounting information system in line of business
and type of business in Vietnam have shown that the accounting information
systems operated by construction joint stock companies are improving in a better
way. Such systems not only operate in financial accounting, but also in
management accounting; Application of Information Technology in accounting
may help provide a timely accounting information. However, the drawbacks of
accounting information systems operated by some of construction joint stock
companies in Vietnam have been found which constrain the competitiveness and

operation efficiency of the companies; on the other hand, not many of research
papers of accounting information system has been performed as improvement of
some accounting information system has been performed by the companies listed
on Vietnam securities market. Therefore, the implementation of a research paper
of actual state of accounting information systems operated by the construction
joint stock companies in Vietnam is essential to find out drawbacks and suggest
some of improvement solutions.
Due to such reasons, the author of thesis has selected “Improvement of
accounting information systems operated by construction joint stock
companies in Vietnam”.
2. Overview of research into accounting information systems
2.1. Research into accounting information systems: In recent years, a direct
research into Accounting Information System has been implemented and is
known with the following four ways of approach:
Approach of accounting information system by accounting practices: This
approach is popular and is used by many researchers for their theory specified in
accounting textbook in computers, such as accounting textbook written by Tran
Song Minh (2012), etc. Besides, there is an experimental research performed by
Nguyen Thanh Quy in 2004. It is a tradition way of approach that the companies
can apply to management of input and output based on accounting entities. The
approach of accounting information system by accounting practices has found its
largest drawback, in which it causes a division in works of accounting; such


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approach does not follow the “information system”. Therefore, it cannot find the
connection between accounting practices in an accounting information system.
Approach of accounting information system by cycle: Some of the
authors, such as Nguyen The Hung (2006), Nguyen Manh Toan with his coworkers (2011), Hall, J.A., & Bennett, P.E, 2011, etc. have published their
research papers of accounting information system in textbooks. Or experimental

research by Huynh Thi Hong Hanh (2014). Such research papers have pointed
out the targets of each cycle, and emphasize the efficiency of accounting
information system made by divisions and personnel in a business cycle; the
efficiency of data collection and information exchange between the accounting
and other divisions, helping to create a platform for ERP application in the
companies. However, such research papers have failed to emphasize the
efficiency of data processing.
Approach of accounting information system by progress of information
system: The approach of accounting information system by progress of
Information System has many research papers by the authors such as Nguyen
Manh Toan with his coworkers (2011), Hall, J.A., & Bennett, P.E. (2011), etc.
Additionally, there are some authors, such as Hoang Van Ninh (2010), Nguyen
Thi Thu Thuy (2017), whose experimental research papers have contributed to
such approach. Those research papers have elucidated the data processing of an
accounting information system, from input, data processing, to output to provide
information to the users. However, a completed accounting information system is
comprised of multiple factors, so that the approach of accounting information
system by progress of Information System will not provide a full detail.
Approach of Accounting Information System by factors that constitute
such systems
This approach has been studied by the authors, such as Azhar Susanto
(2008), Thai Phuc Huy with coworkers (2012), Le Thi Hong (2016), etc. Each of
research papers has expressed its viewpoint about factors that constitute other
types of accounting information system. Such approach is considered to be more
comprehensive than the above-mentioned ways of approach.
2.2. Rating of accounting information system in respect to efficiency
Rating of accounting information system in respect to efficiency may be
classified into the following two popular models:
Model of rating of accounting information systems in respect to efficiency
by direct method, which was published by Yuvaraj & Kibert (2013), H. Sajady,

Ph.D. with coworkers (2008), Le Ngoc My Hang with coworkers (2012), helps
to prepare efficient and direct measures applied to accounting information
systems without means of other factors.
Model of rating of accounting information systems in respect to efficiency
by indirect method will not provide a direct rating of accounting information
systems in respect to efficiency, but use of means of other factors. At the
moment, the model of rating of accounting information systems in respect to


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efficiency by reviewing level of satisfaction of users is more popular. This model
was researched by many researchers, such as DeLone and McLean (1992), Kim
(1989), years ago in the world. In the next years, the famous research papers of
rating of accounting information systems in respect to efficiency by reviewing
level of satisfaction of users, which may be used by prospective researchers, was
carried out by DeLone, W.H., & E.R. McLean. (2003).
2.3. Comments on overview of research work regarding name of thesis and
finding research problem
In research into Accounting Information System, the thesis has evaluated
research methodology of each way of approach through research overview of
accounting information systems. The approach of rating of accounting
information systems by factors, which constitute the accounting information
systems, has shown full detail of accounting information systems and is
applicable to model of rating of accounting information systems in respect to
efficiency at the moment. Therefore, the author of thesis has applied such
approach to use as a research methodology in the thesis. However, in order to
establish a theory basis for purpose of research into actual state of accounting
information systems with solutions, the author of thesis has not only collected the
consequent from approach of rating of accounting information systems by factors
that constitute the accounting information systems, but also selected the

consequent collected from the above-mentioned three ways of approach.
In research into rating of accounting information systems in respect to
efficiency, in improvement of the approach of rating of Accounting Information
System in respect to efficiency by direct method, the rating has just been
performed based on benefits of accounting information systems. The approach of
rating of accounting information systems by reviewing level of satisfaction of the
users provides a comprehensive view and rating on quality of factors contributed
to accounting information systems in Information Technology application
platform. Many of published research papers have not performed rating of
accounting information systems, which are operated by the construction joint
stock companies, by level of satisfaction of the users, so that their solutions are
still unilateral. From the above comments, the thesis has found out the following
problems:
- Elucidate and supplement additionally theoretical problems regarding
accounting information systems operated by the construction joint stock companies,
in which the approach of rating of such systems by factors that constitute the systems
should include the consequent of the published research papers.
- Evaluate the efficiency of accounting information systems operated by
the construction joint stock companies in Vietnam by reviewing level of
satisfaction of the users working for the companies.
- Study and suggest the solutions that help improve accounting
information systems operated by the construction joint stock companies, which
apply Information Technology to establishing internal information system in


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direction of integrating financial accounting and management accounting.
3. Research targets
General target: Complete improvement of accounting information
systems operated by construction joint stock companies in Vietnam.

Typical research target: Define theoretical model of accounting
information systems; Study and evaluate actual state of accounting information
systems; Suggest solutions that help improve accounting information systems
operated by construction joint stock companies in Vietnam.
4. Research questions:
- What detail does research into accounting information systems operated
by construction joint stock companies perform?
- What is the actual state of accounting information systems operated by
construction joint stock companies in Vietnam?
- What are solutions can be suggest to help improve accounting
information systems operated by construction joint stock companies in Vietnam?
5. Objects and scope of research
- Objects: Study accounting information systems operated by
construction joint stock companies in Vietnam; Evaluate accounting information
systems by level of satisfaction of the users working for the construction joint
stock companies in Vietnam.
- Scope: Perform study and survey into managers, leadership, and heads
of division or Accounting in construction joint stock companies in Central
Highlands of Vietnam which are the primary target of survey. Period: from 2015
to 2017.
6. Research process: Research process of the thesis is classified into 8 steps:
7. Scientific and real significance of thesis
Theory: This thesis has supplemented and elucidated theoretically
accounting information systems operated by construction joint stock companies
within five matters; it has summarized and established model of rating of
accounting information systems in respect to efficiency by reviewing level of
satisfaction of the users.
Real significance: The thesis has evaluated actual state of accounting
information systems within five viewpoints; in which it has reviewed level of
satisfaction of the users within five factors; and suggested solutions that help

improve accounting information systems operated by construction joint stock
companies in Vietnam.
8. Outline of thesis: This thesis is structured into 4 chapters.
CHAPTER 1. THEORETICAL BASIS OF ACCOUNTING
INFORMATION SYSTEMS OPERATED BY CONSTRUCTION JOINT
STOCK COMPANIES
1.1. Theoretical basis
1.1.1. Accounting information system


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At the moment, some of the different viewpoints over accounting
information systems has been expressed by, such as Azhar Susanto (2008), in
which it has expressed that an accounting information system is built from
material and non-material used to process transactions related to financial
position of a company. One viewpoint has expressed that an accounting
information system is an organized system that its function is to collect, classify,
process and analyze status information, and provide the users in or out of a
company with such information in order to take a decision in respect to economy
(Moscove, 1997). A viewpoint by Romney and Steinbart (2006) also expressed
that an accounting information system functioned in collection, data recording
and processing in order to provide the users, who desired to make a decision in
respect to economy, with relevant information.
Viewpoint by the author of thesis: “Accounting information system is a
combination of different components which function in collection, storage,
processing of data under the typical orders so as to provide the users in and out
of a company with information in respect to finance and non-finance.
1.1.2. Theory of asymmetric information: The asymmetric information is
caused by difference in level and detail of information, and differential purposes
from leadership of a company to an investor (Nguyen Cong Phuong with

coworkers, 2012). An investor needs providing not only information of a
financial statement, but also information of a management accounting. This
theory should be applied in order to establish an efficient accounting information
system and provide the users with useful information.
1.1.3. Theory of dynamic capabilities: This theory has been applied by many
authors in their research papers in improvement of competitiveness of a
company. In application of such theory, the author of thesis has identified
Information Technology systems, economic employees, quality of service, and
administrators’ awareness of usefulness of an accounting information system and
rating of an account information system in respect to efficiency by reviewing
level of satisfaction of the users.
1.2. Characteristics of accounting information systems operated by
construction joint stock companies
1.2.1. Characteristics of a construction joint stock company which shape
accounting information
There are three characteristics which shape an accounting information
system, including manufacturing engineering, constructional products and
expenditure management. Such characteristics create effect to the following
matters of an accounting information system: Prepare projected cost of
production on each construction or work item; collect information regarding
expenditure and calculate price of a basic constructional product.
1.2.2. Role of accounting information systems operated by construction
joint stock companies
The accounting information systems play a drastically significant role in


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contribution to business operation efficiency of a company as it may provide the
administrators and those, who desire to make decisions in respect to economy,
with useful and timely information. Such drastically significant role of providing

information to the users, who is not only in construction joint stock companies
(management accounting), but also out of the companies (financial accounting).
The combination of an accounting information system and other
information systems will establish a big database in respect to quantity,
processing speed and types of information, which plays an important role in
construction joint stock companies, units and personnel in and out of the
companies.
1.2.3. Demand in providing accounting information and factors that
constitute an accounting information system in construction joint stock
company
There are two types of users of an accounting information system,
including those who is in or out of a construction joint stock company. Due to
differential purposes of the users, the accounting information providing to the
users may not be totally the same. However, a completed accounting information
system that may act as an accounting information provider to all of the users
consists of five factors: (1) Input data, (2) Data processing, (3) Output data, (4)
Control of accounting information system, (5) Storage of accounting information
and data.
1.2.4. Requirements of an accounting information system in construction
joint stock company
- Output data: Meet the requirements in regard to accounting information
quality and matters. In which, a qualified information should maintain its
accuracy, time, recapitulation, appropriateness and completion.
- Resources participating in an accounting information system: ensure
installation, technical devices and personnel.
1.3. Matters of accounting information systems operated by construction
joint stock companies
1.3.1. Input data
- Content of input data that needs collecting relies on types of information
required by the users (Nguyen Bich Lien and coworkers, 2016). However, in

summary, types of accounting data include older data and forecast regarding
economic entities in a company.
- Methods and tools for input data collection: The companies may apply
different methods, including word of mouth, remembering or using accounting
records and other types of documents.
- Accounting division and other functional divisions may participate in
collection of accounting data.
- There are two popular methods of collecting input data, including the
use of accounting software dependent from other software used by different
functional divisions, or the accounting software integrated into management


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software used by other divisions.
1.3.2. Accounting data processing in construction joint stock data
The personnel participating in accounting data processing are specified by
accounting division, tasks and assignments for each accountant.
Methods and accounting data processing are supported by independent or
integrated accounting software.
Popular tools: Encryption methods, accounting policies, accounting
account, and promotion methods for managing accounting information system.
The ultimate goal is to obtain information on financial accounting and
management accounting. There is a difference in such types of information, so
that a certain difference in application of tools may be discovered.
1.3.3. Provide accounting information
Accounting report can provide the users in or out of company with
accounting information. Depend on different purposes of the users, the content,
time and methods of accounting report may be different. Including:
- Provide accounting information to external units via financial
statements; prepare and form financial statements in accordance with regulations

of the Government
- Provide the internal users with accounting information via management
accounting; preparation and form of management accounting report should abide
by administration requirements of the company other than regulations of the
Government.
1.3.4. Control of accounting information system
The control of accounting information system plays an importance role in
contributing to efficiency of accounting information system. However, this thesis
will only mention control of applications in an accounting information system.
Including: Control of output data; Control of data analysis and processing, and
output data.
1.3.5. Storage of accounting information and data
Storage of accounting information and data includes: (1) Accounting
information and data classification and sorting; (2) Place of storage; (3) Time of
storage; (4) Security; (5) Personnel responsible for storage of accounting
information and data.
1.4. Model of rating of accounting information systems in respect to
efficiency by reviewing level of satisfaction of users
1.4.1. Viewpoint of rating Accounting Information System in respect to
efficiency
The efficiency of an accounting information system is interpreted in way
of achieving certain goals. The interpretation of such efficiency has been
expressed under viewpoints, such as: It is considered as efficiency of accounting
information system if such system can provide accounting information which can
meet demand of the users (Kim, 1989; Nicolaou, 2000; H. Sajady and coworkers,
2008), or meet satisfaction of the users (Bailey and coworkers, 1983; William


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DeLone and coworkers; Huynh Thi Hong Hanh, 2013; Nguyen Tran Ngoc Dieu,

2017). Or the approach by reviewing level of satisfaction of the users in a way
more popular and closer to the matters of accounting information system.
Therefore, this thesis has selected research methodology in rating of accounting
information systems in respect to efficiency by reviewing level of satisfaction of
the users.
1.4.2. Theory of research in to model of rating of accounting information
in respect to efficiency by reviewing level of satisfaction of the users
This thesis has collected research findings and performed analysis on
study model by DeLone, W.H. & E.R. McLean (1992, 2003) and other study
model by Nguyen Tran Ngoc Dieu (2017). In which, a study model by DeLone,
W.H., & E.R. McLean (1992, 2003), which has been selected by many other
authors for their experimental research papers, consists of five factors: (1)
Quality of accounting information; (2) Quality of accounting information system;
(3) Quality of service; (4) Satisfaction of system utilization; (5) Awareness of
helpfulness in accounting information system. However, the fourth factor of
author DeLone, W.H.& E.R. McLean. has not been used in this thesis.
Moreover, this thesis has applied additional factor “Qualities of accountants” in
research paper of author Nguyen Tran Ngoc Dieu (2017).
1.4.3. Viewpoint on approach and assumption
H1: Quality of accounting information has a reversible relationship with
level of satisfaction of the users.
H2: Quality of accounting information system has a reversible
relationship with level of satisfaction of the users.
H3: Qualities of accountants has a reversible relationship with level of
satisfaction of the users.
H4: Awareness of helpfulness in accounting information system has a
reversible relationship with level of satisfaction of the users.
H5: Quality of service has a reversible relationship with level of
satisfaction of the users.

Chart 1.14. Research model
In order to show the relationship between satisfaction of the users and the
aforementioned factors, this thesis has suggested the estimated recursive equation


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under the following formula:
US = β1IQ + β2SQ + β3QA + β4QU + β5SVQ
CONCLUSION OF CHAPTER 1
Theoretical basis of accounting information system provide foundation in
research into actual state and improvement of accounting information systems
operated by construction joint stock companies in Vietnam. In this chapter, the
thesis has performed profound research into essence and role of accounting
information system; five matters that constitute accounting information system;
an overview of efficiency of accounting information system, and collection of
study models in rating of accounting information system in respect to efficiency
and thence suggestion of model of rating of accounting information system in
respect to efficiency by this thesis.
CHAPTER 2. RESEARCH METHODOLOGY ON ACTUAL STATE OF
ACCOUNTING INFORMATION SYSTEMS OPERATED BY
CONSTRUCTION JOINT STOCK COMPANIES
2.1. Research chart
In order of implementation of thesis, or answering the questions regarding
actual state in essence, the author of thesis has formed study chart:

Chart 2.1 General research chart


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2.2. Research methodology

2.2.1. Qualitative research
- Methods of data collection include semi-structured interview, structured
interview, and observation.
- Survey methodology and objects: Survey data collection is performed
by using questionnaires. Two steps of survey data collection include unofficial
survey and official survey. The survey objects for rating of accounting
information systems operated by construction joint stock companies in Vietnam
are heads of department, deputy heads of department and experienced
accountants; The survey objects for giving assumption and rating scale of
accounting information system in respect to efficiency are top men of companies,
divisions, building divisions in construction joint stock companies in Vietnam.
- Survey forms: Select the typical construction joint stock companies for
performing unofficial survey, and perform profound study into actual state of
accounting information systems, and establish assumption and rating scale, and
implement profound interview with seven heads, deputy heads and experienced
accountants in Accounting department, and leadership of seem companies
selected from 90 construction joint stock companies who have good knowledge
of accounting information. In case a survey is performed for purpose of analysis
and evaluation of accounting information systems, 90 people as heads, deputy
heads and accountants in Accounting departments of 90 construction joint stock
companies may be interviewed.
- Methods of survey data collection: Survey data collection may be
performed by using questionnaires, profound interviews, accounting reports and
records. Survey data may be processed by Excel.
2.2.2. Quantitative research
- Methods of survey data collection, survey objects and forms: In order to
maintain reliability, the survey has been performed by interviewing the users of
accounting information system, including leadership, divisions and building
divisions of 90 construction joint stock companies in Vietnam with 220
questionnaires.

- Methods of survey data collection: Using SPSS 20.
2.3. Application of research methodology
Application of research methodology is performed in four steps.
CONCLUSION OF CHAPTER 2
In order to interpret actual state of accounting information systems
operated by construction joint stock companies in Vietnam, this thesis has
applied qualitative research and quantitative research. This research methodology
has been applied to questionnaire design, unofficial survey, unofficial survey data
processing, preparing official survey questionnaires, and official survey data
processing by assistance of software.


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CHAPTER 3. ACTUAL STATE OF ACCOUNTING INFORMATION
SYSTEMS OPERATED BY CONSTRUCTION JOINT STOCK
COMPANIES IN VIETNAM
3.1. Overview of construction joint stock companies in Vietnam
3.1.1. Basic review of construction joint stock companies in Vietnam
In recent years, the development of building in Vietnam has been rapid in
respect to quality and quantity of construction joint stock companies. Therefore,
the market share of building has been expanded over the time, especially in 2016,
when the statistics in building have increased in comparison with previous years.
The construction joint stock companies operate in three fields, including:
House building, civil construction engineering and specialized building. In 2016,
the construction joint stock companies operating in house building made up a
highest proportion.
3.1.2. Characteristics of management and organization of business
operation in construction joint stock companies in Vietnam
Organization and management: Building operation of the companies
spreads over the local in respect to geography, so that the management and

organization of construction joint stock companies should be flexible, and stick
close to construction sites where their workers are implementing their duty. The
organization of construction joint stock companies is divided into three levels,
including company - factory - teams, or two levels, including company - teams or
factory.
Business operation: Through survey with 90 construction joint stock
companies, there are 100% companies which operate in both building
construction and paying flat rate of construction/work items to the relevant units.
And there are 90 of 90 construction joint stock companies which operate by three
types of paying flat rate (such as lump-sum pay, expenses pay, joint expenses
pay).
3.1.3. Characteristics of organization and management of accounting
activites in construction joint stock companies in Vietnam
In survey regarding organization and management of accounting
activities of 90 construction joint stock companies, it is shown that 29 of 90
companies (a ratio of 32.2%) which organize and manage accounting activities
under both concentration model and decentralized model. There are 61 of 90
companies (a ratio of 67.8%) which organize and manage accounting activities
under concentration model.
In applied accounting policies (Chart 3.4)
3.2. Research findings of actual state of accounting information systems
operated by construction joint stock companies in Vietnam
3.2.1. Actual state of accounting information systems operated by
construction joint stock companies in Vietnam
In finding out users’ demand for accounting information, this thesis has
just found out actual demand for accounting information required by


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management levels in 90 construction joint stock companies. Through survey

with 210 top men and heads of departments and divisions in 90 construction joint
stock companies, it is shown that there are 206 qualified questionnaires (a ratio of
98%) which express that the accounting information is essential to four functions
of management.
Chart 3.4. Accounting policies executed by the construction joint stock
companies in Vietnam

Input data collection
- Content of input data: Through survey, there are 100% (90 of 90)
construction joint stock companies saying that they collected forecast data, older
data, but they have not built an index data regarding some certain accounting
activities.
- Methods and tools for input data collection: There are 100% (90 of 90)
construction joint stock companies saying that they have used accounting records
and management records. The management records have not been highly
appreciated by some of construction joint stock companies.
- Personnel participating in input data collection: Through survey, there
are 100% accountants in construction joint stock companies saying that they
collected accounting data by accounting activities related to functional divisions
in their company. The accountants are responsible for implementing collection,
creating and approve of accounting records related to accounting activities of the
companies. However, such activity has not been highly appreciated.
The competitive tendering acting is being given the most attraction by
construction joint stock companies, making up proportions of 75.6%, 53.3% and
51.1% respectively. Some of construction activities, such as completion of
works, funding and workforce management, are not put in consideration. Not
much of attraction is given to materials and machinery transport by some of
construction joint stock companies.
- Methods of input data collection: 100% accounting records arising from
or out of the companies have been approved in written without using ERP

software. Most of accounting records arising from the companies are made by


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accounting software, Excel or other relevant software, some of which are printed
in forms.
Accounting data processing performed by construction joint stock
companies in Vietnam
- Goals of accounting data processing: Perform accounting data
processing in order to provide the users out of company with accounting
information: The construction joint stock companies can make a good
classification on accounting information to provide the users out of the
companies, and perform accounting data processing, and implement book
keeping operation, announcing accounting information, tax return and payment,
etc. Perform accounting data processing in order to provide the leadership with
accounting information: it is intended to take decisions on bid price, selection of
subcontractors, etc. in respect to all levels of management. Some of the
construction joint stock companies may not be too obligated to abide by
regulations of the Government but regulations on business finance and the
administrators’ demand on accounting information.
- Through survey on personnel participating in accounting data processing
in the construction joint stock companies, the accounting data processing is
performed by accountants in Accounting department, Planning department,
Engineering department, and technicians from the relevant units.
With regard to construction/work items that have been deployed by
subordinate units, there are 100% (90 of 90) construction joint stock companies
have make clear about accounting activities of the senior units and subordinate
units. Tasks and assignments regarding accounting activities have been assigned
to the accountants by chief accountant. However, there is a large proportion
about construction joint stock companies which have not performed strict

analysis and check of any arising accounting tasks and assignments in order to
assign the accountants for solutions.
- In accounting data processing: There are 100% construction joint stock
companies that use accounting software independent from other departments and
divisions and other subordinate units, in which 53 of 90 (58.9%) construction
joint stock companies have purchased programmed accounting software; 37 of
90 (41.1%) construction joint stock companies have hired developer to develop
an accounting software for their purpose; and no company can develop an
accounting software on their own. Some of the companies believed that such
accounting software might not provide functions required by the administrators.
Tools for accounting data processing: Some of the construction have
applied methods of encryption, measure, account and forms of operation to build
accounting information system.
Methods of encryption of accounting objects
Each of the construction joint stock companies may apply different
methods of encryption, such as encryption of sequence of code by space,
encryption of descriptor code and hierarchical code. The coder used to manage


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accounting objects in the accounting software is dependent from accounting
software of other departments and divisions.
Tools for accounting data processing in financial accounting
Methods of measure: One of the methods to be put in great consideration
is costing of construction/work items. There are 100% (90 of 90) construction
joint stock companies which have sorted expenses by operational functions. At
the end of accounting period, distributed expenses may be made under different
criteria. There are 35 of 90 (38.9%) companies which relied on revenue, 35 of 90
companies (35.6%) which relied on expenses of direct raw material, and 23 of 90
companies (25.5%) which relied on distribution rate. Particularly, distributed

expenses of machinery in construction/work items may be made based on actual
shifts at the end of a month. There are 100% construction joint stock companies
which did not make distributed expenses on credit interest, bonds for each
construction/work item. Some of the companies has not paid much attention to
provisions and temporary credit spread at the date of financial statement.
Account and account books
Most of account list types, which were designed by the developers, are
mostly ledger account. However, a ledger account may not have enough
capability in accounting data processing for a financial statement, so that a
secondary account or third-level account is necessary.
Detailed account books and general books in financial accounting may be
designed by the developer or accountants under the forms, which were
promulgated by the Ministry of Finance, without amendment or modification.
Tools for accounting data processing in management accounting
Accounting data processing for purpose of planning
Define expense standards: There are 100% construction joint stock
companies which have defined their expense standards for direct raw material,
direct labor and utilization of machinery; such standards have complied with
regulations of the Government and entities view of the companies. On the other
hand, there are some certain expenses not defined by some of the companies.
There are 100% construction joint stock companies which have not defined
internal expenses.
Define budget standards: Estimate of expenditure is set up to define bid
price and production planning made by subordinate units. To define bid price,
aside from other expenses, the companies may find out the dutiable income rate
and actual process specifications, etc. Revenue budget: It may be defined based
on production planning, regulations in civil works contracts, work acceptance
and managerial effectiveness in current year specified in financial statement. At
the beginning of a year, the construction joint stock companies may set up
planning for business funding.

Perform older accounting data processing for demand from the
administrators: In order to perform accounting data processing for purpose of
management, the construction joint stock companies may apply methods of


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measure, account and detailed account books. However, expense classification
and costing of construction/work items have just proceeded to accounting data
processing in financial accounting. But the methods of measure may apply not
only in value but also in kind mostly. The construction joint stock companies
have made opening of account and account books, which are more detailed than
those in financial accounting.
Perform accounting data processing for purpose of control function:
However, the control of accounting entities implemented by the construction
joint stock companies has just been proceeded to obtained figures in comparison
with figures specified in a planning. Particularly, the construction joint stock
companies have just performed control of amount of raw material, labor and
machinery in reality in comparison with those assessed in respect to direct raw
material expenses, direct labor and expenses for utilization of machinery. Control
of raw material in a construction site may only performed at the end of a month.
Perform accounting data processing for purpose of making decisions in
respect to economy: There are 100% owners of the companies saying that the
accounting information is only useful in defining bid price, lump-sum payment to
the construction teams, factories, or labor with a certain rate, decision on
selection of subcontractors or raw material suppliers, etc.
- In actual state of providing accounting information, there are 100% (90
of 90) construction joint stock companies saying that they have classified
accounting information to provide to the certain users. But such classification has
just been defined by default without official document. The construction joint
stock companies have classified accounting information to provide to tax

authorities, Banks, and for purpose of management and business operation.
Tools for providing accounting information
Provide the users out of a company with accounting information: The
construction joint stock companies may provide accounting information not only
with tax authorities and banks, but also with the investors. The accounting
information may be provided via financial statement, policy statement and
announcement of exception report. The construction joint stock companies may
comply with accounting standards and prevailing system of accounts in
displaying accounting information in a financial statement. Through survey, there
are 50% construction joint stock companies which have formed four types of
financial statement. Content in most of financial statements is complied with
regulations of the Government. Notes to the financial statement may be more
flexible without adding necessary criteria for a financial statement.
Provide the users in a company with accounting information: The
construction joint stock companies have formed reports for providing accounting
information for purpose of management. The types of report may vary from other
companies.
Control of accounting information system: Through survey, the
construction joint stock companies have made a good control on input data


16
before input activity, and data comparison with people concerned, and output
data. However, some of the companies have not made a good control on
modification, adjustment, permission of access, adding and printing reports.
Storage of accounting data and information: There are 100% (90 of 90)
construction joint stock companies saying that they have sorted accounting data
and information by date of storage. The construction joint stock companies have
applied various methods of storage to accounting data and information.
3.2.2. Research into efficiency of an accounting information system

operated by the construction joint stock companies in Vietnam
In survey form, this thesis’ survey has only applied to top men and
personnel of 90 construction joint stock companies by giving 210 questionnaires
to 90 construction joint stock companies in the Central Highlands, in which 210
questionnaires have been collected with 206 (98.1%) qualified questionnaires.
Survey findings and comments on rating of level of satisfaction of the
users in the construction joint stock companies in Vietnam
Survey findings of level of satisfaction of the users: According to the
survey findings, the satisfaction of top men, departments and functional divisions
over accounting information system is not high, with a scale of 3.11 to 3.39 in
average.
According to investigation findings of research assumptions by applying
Cronbach’s Alpha, Exploratory Factor Analysis, Pearson Correlation Analysis
and Analysis of Multi-variable Linear Regression, the five assumptions from H1
to H5 that set up for rating of level of satisfaction of the users are totally accepted
without being rejected. The findings have shown that such five factors, which
have created a positive effect on satisfaction of the users, is totally appropriate to
theoretical research and research in reality performed by previous authors.
Therefore, five factors that should be considered during research into completion
of accounting information system: Quality of accounting information, awareness
of helpfulness of accounting information system, quality of service, quality of
system and accountants’ qualities. The standardized recursive equation is as
follows:
US = 0,393*QA + 0,311*PU + 0,123*IQ + 0,111*SQ + 0,012*SVQ
3.3. Rating of actual state of accounting information systems operated by
construction joint stock companies in Vietnam
3.3.1. Actual state of accounting information systems operated by
construction joint stock companies in Vietnam
Based on actual state of accounting information systems operated by
construction joint stock companies in Vietnam, the thesis has summarized the

following research findings:
Content of input data: Most of administrators in the construction joint
stock companies have not made a clear definition of accounting information and
control of such information, for purpose of making decisions in respect to
economy.


17
Input data collection: There is a large proportion of the construction joint
stock companies which have not formed chart of relationship with functions,
process, and description of process in connection with each of business activities.
There are 100% construction joint stock companies which have not used
accounting software integrated into management software, causing delivery of
accounting records to be delayed. Tools for collection of accounting data have
not been rated good.
Accounting data processing
- Targets of accounting data processing: There is a high proportion of
accountants in the construction joint stock companies who have not defined
target of accounting data processing in connection with some of accounting
entities. There are 100% construction joint stock companies which have not
make an official written targets of accounting data processing.
- Personnel participating in accounting data processing: Most of the
construction joint stock companies have not put permission of adding, viewing,
and printing accounting information in consideration. Moreover, the interaction
between departments and divisions have not been high.
- In methods of accounting data processing: most of accounting software
run by the construction joint stock companies have not met demand from the
users.
- Tools for accounting data processing
+ The encryption has not applied to accounting entities as most of the

companies have not had profound knowledge of what necessity to encryption of
such accounting entities is. The encryption process has not made a profound
study into the essence of accounting entities. The build of list of accounting
entities to be encrypted has not been created by cooperation of the relevant
departments and divisions.
+ Tools for accounting data processing in financial accounting: In
methods of measure, most of the construction joint stock companies have put a
less consideration on provision. Accounting of some expenses have not complied
with the regulations. The construction joint stock companies have not made some
of accounts and account books under criteria of financial statement.
+ Tools for accounting data processing in management accounting
Accounting data processing for purpose of planning: The construction
joint stock companies have not defined a good standard for production expenses.
The estimate of expenditure applied to direct raw material, direct labor and
utilization of machinery is affected by defined expense standard as it may not
follow closely to the reality, causing a decrease in significance of estimate of
expenditure. Some of the construction joint stock companies have less
considered the planning for material reserves; budget for credit interest and
administration expenses as such budget has just been estimated in percentage.
Accounting data processing for purpose of accounting matters:
Classification of expenses has just performed through levels of business


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operation, and distribution of expenses has just implemented in traditional way.
The build of list of accounts and indexes is heavily relied on style of finance
accounting as it has paid less attention to managerial accounting reports.
The accounting data processing for purpose of control has not been
performed strictly.
The shortcomings in accounting data processing for purpose of making

decisions in respect to economy has been found, as it has not suggested solutions
for calculation, and recording on reports, and providing a clear interpretation for
each solution to help the administrators make decisions in respect to economy.
Provide accounting information
With regard to providing accounting information in financial accounting,
accounting information in financial statement has not been flexibly displayed, as
one of the contents, which effect how accounting information is displayed in
financial statement, is provision. The prepaid expenses before distributed
expenses have not been considered by the companies. In regard to accounting
information in management accounting, the quantity of managerial accounting
reports has not been sufficient to meet demand from the administrators.
Using Excel to form an accounting report may lessen the accuracy and
date of accounting information; it may also affect accounting information
processed by accounting software or Excel or stored in documents that have not
been synchronized.
Control of quality of accounting information system: In regard to control
of accounting information system, most of the construction joint stock companies
have not integrated such control into purpose of management.
3.3.2. Rating of efficiency of an accounting information system operated
by the construction joint stock companies in Vietnam
First, it may be seen that there are four main reasons that brought about
the shortcomings arising from actual state of accounting information systems
causing quality of accounting information to be low.
Second, through model inspection, it may show a clearer view of five
factors that make an impact on satisfaction of the users, and show the levels of
impact resulted by such factors so as to establish foundation for suggesting
solutions that help surmount in order of preference thence improve accounting
information systems.
CONCLUSION OF CHAPTER 3
In this chapter, the thesis has elucidated actual state of accounting

information systems operated by the construction joint stock companies in
Vietnam by giving five details. Simultaneously, it has also studied satisfaction of
the users, and found out the factors that make impact on satisfaction of the users
in the construction joint stock companies. Those shortcomings found out by this
thesis is the foundation to suggest solutions that help improve accounting
information systems.


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CHAPTER 4. SOLUTIONS TO IMPROVE ACCOUNTING
INFORMATION SYSTEMS OPERATED BY CONSTRUCTION JOINT
STOCK COMPANIES IN VIETNAM
4.1. Promising development of building in Vietnam
The building in Vietnam has been supporting by the Government with
Law on Housing (2014), allowing individual and foreign enterprises to take
ownership of house in Vietnam. This law is a way of creativity in absorbing
foreign investment with any foreign investor who is conformable to the general
planning for building in Vietnam. In 2017, it is intended to continue to absorb
Foreign Direct Investment, or FDI, to Information Technology, high-tech
industry and auxiliary industry, high-quality services, especially trading, tourism
and logistics, etc. From there, it may be seen that the development of building in
Vietnam will have a bright future.
4.2. Request to improve accounting information systems operated by the
construction joint stock companies Vietnam
The improvement of an accounting information system should follow the
following requirements: Apply Informatics Technology to accounting matters;
such improvement should be appropriate to the characteristics of business
operation in the construction joint stock companies; such improvement should
abide by regulations in the law regarding accounting, finance, and other relevant

laws, such as Law on Accounting, Accounting Standards, Decrees regarding
instruction on how to implement such regulations; maintain to improve
accounting information in financial accounting and management accounting;
maintain the balance between expenses and benefits and possibility of
application.
4.3. Solutions that help improve accounting information systems operated
by the construction joint stock companies Vietnam
The construction joint stock companies should focus on improving the
following six details:
4.3.1. Solutions that help meet the requirements of accounting information
from the users
In this scope, this thesis has just suggested solutions that help to meet
requirement of accounting information from the administrators. This thesis has
suggested that each of administrator should require that accounting information
should be provided in full detail for purpose of management of the companies,
and accounting information, such as expenses, revenue, debts, etc. should be
announced to the public via description of demand on accounting information.
4.3.2. Solutions for input data collection in the construction joint stock
companies in Vietnam
In this content, this thesis has focused on improvement of the following
three problems:
Improvement of how input data is collected


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Each of the construction joint stock companies should build a
management process for each of business operation under flow chart.
On the basis of management process, every construction joint stock
company should build a general table with targets which records details of
accounting records and documents from departments and divisions.

Improvement of accounting data collection: Each of the companies should
make purchase of accounting software or management software conformable to
their demand in order to make use of such software in maximum under the
company’s financial position.
Improvement of methods and tools for accounting data collection:
According to current regulations, the construction joint stock companies are
entitled to be flexible on their own in application and definition of accounting
records and other types of documents for purpose of accounting data collection.
However, using accounting records to perform accounting data collection should
abide by the following rules:
First, using accounting records to perform accounting data collection
should comply with regulations of the Law on Accounting regarding form,
management and use of accounting records, and business operation
characteristics and requirements of management from a company.
Second, account records are ensured to collect two types of accounting
data, including accounting data in financial accounting and accounting data in
management accounting;
Third, the construction joint stock companies, on their own, should design
forms of accounting records corresponding to any detail in account books and
reports;
Fourth, under application of Information Technology, forms of
accounting data, which are designed on a computer for purpose of input data,
should consider types of accounting information provided to the users on
demand.
Moreover, the construction joint stock companies should provide
additional documents regarding accounting data processing for purposes such as
analysis, evaluation and control of expenses, and rating of departments and
divisions in respect to efficiency.
Therefore, in order to maintain a full, precise and conformable accounting
data collection, each of the companies should build an index of accounting

records which attach to accounting entities, such as cash, material, lump sum, etc.
4.3.3. Solutions for input data collection in the construction joint stock
companies in Vietnam
Completion of accounting data processing: Each of the companies should
perform analysis on details regarding accounting entities, general accounting
information for purpose of business operation, for the administrators and other
external users. Targets of accounting information should be implemented in
certain steps, which helps find out which demands on accounting information are


21
completed, accurate and conformable. Such targets are the foundation of
accounting data collection and data processing and design of reports before
operating an accounting information system.
Improvement of personnel participating in accounting data processing:
The construction joint stock companies should focus on improvement of the
following basic three problems: The chief accountant should set permission for
each of accountants who works with the same functions in an accounting
software; each of accountant should make a good cooperation with each other; all
of the construction joint stock companies should focus on personnel recruitment.
Improvement of methods of accounting data processing: The huge
development of Information Technology has invented new methods of
accounting data collection and processing, and new methods of providing
accounting information. The application of Information Technology to
accounting matters is an essential requirement of the age of economic
integration.
Improvement of tools for accounting data processing: In this detail, this
thesis has found out three basic factors, including encryption of accounting
entities, tools for accounting data processing in financial accounting and in
management accounting.

Regardless of the construction joint stock companies use ERP or
independent accounting software in encryption of accounting entities, the
synchronized encryption of accounting entities is an essential factor for purposes
of accounting matters and inspection, etc. This thesis has suggested the steps of
an encryption process.
In regard to tools for accounting data processing in financial accounting,
this thesis has suggested solutions that help prepare provisions in compliance
with regulations, and apply cost accounting to the right accounting entities, and
open accounts and make account books in conformity with the criteria in a
financial statement.
With regard to tools for accounting data processing in management
accounting, this thesis has suggested using applicable tools for accounting data
processing in two schemes: A large-scale construction joint stock company
should apply model of mix accounting organization. In which, a company may
organize two separated divisions of financial accounting and management
accounting. If any subordinate units (or factories) has accounting activities, they
should follow such model. Medium and small construction joint stock companies
should organize in a combination of financial accounting and management
accounting.
4.3.4. Solutions for providing accounting information in the construction
joint stock companies in Vietnam
In order that the users are met demand on accounting information in
respect to suitability, completion, accuracy and time, shortcomings of financial
statements and managerial accounting reports should be remedied. Any expense


22
should be included in a financial statement by groups of construction joint stock
companies by following the Decree no. 200/2014/TT-BTC and the Decree no.
133/2016/TT-BTC. With regard to managerial accounting reports, each of the

construction joint stock companies should provide additional types of report
conformable to management of the administrators.
4.3.5. Solutions for control of accounting information systems operated by
the construction joint stock companies in Vietnam
In order to ensure the asset protection and accounting information security
with accuracy and reliability, it is necessary to set up procedures for totally
controlling of operation process of an accounting information system, from input
data to data processing, and output data is exported via figure comparison.
4.4. Implementation conditions
4.4.1. With regard to the Government, the thesis has suggested that the
Government should improve the following four basic problems: The
Government should implement strict inspection and control on expenses and
quality of construction, from steps of planning for management and exploitation;
the Government should improve their legal documents regarding management of
investment in construction; the Government should define a more detailed
system of legal documents and financial accounting standards in in order to
apply to building and erection in conformity with international accounting
standards and practice; the Government should orient accounting training
programs in a way of not only focusing on financial accounting, but also
management accounting.
4.4.2. In regard to the construction joint stock companies in Vietnam,
through analysis on actual state and rating of efficiency of accounting
information systems operated by the construction joint stock companies in
Vietnam, each of the companies should concentrate on finding solutions for the
problems in order of preference, such as: Improving qualities of accountants;
Raising awareness of usefulness of an accounting information system; Improving
quality of accounting information system; Improving quality of service.
CONCLUSION OF CHAPTER 4
From review of promising development of the construction joint stock
companies in Vietnam, and rating of actual state of accounting information

systems operated by the construction joint stock companies in Vietnam in
Chapter 3, this thesis has found out what requirements to be followed in order to
improve accounting information systems, and suggested solutions that help
improve six matters of accounting information systems. Such suggestions of
improvement are based on what impacts on level of satisfaction of the users in
the construction joint stock companies. On the other hand, this thesis has
suggested some solutions with the state authorities.


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CONCLUSION
The thesis “Improvement of accounting information systems operated by
construction joint stock companies in Vietnam” has been made on the basis of
theory with reliability, using primary data and sources of data collected by the
author of thesis. This thesis has applied a combination of qualitative and
quantitative research for purpose of data processing. With this thesis, the author
has collected research findings, shortcomings, and proposed new directions for
research work:
1. Research findings
First, in an overview, this thesis has performed analysis on what
advantage and disadvantage of each of different ways of approach to an
accounting information system; this thesis has generalized research papers of
rating of efficiency of an accounting information system, and set up viewpoint of
rating of rating of efficiency of an accounting information system by reviewing
level of satisfaction of the users.
Second, this thesis has elucidated what essence of an accounting
information system is, and found out six factors that constitute an accounting
information system; and set up model for research into rating of efficiency of an
accounting information system by reviewing level of satisfaction of the users.
Third, this thesis has performed analysis on what characteristics of a

construction joint stock companies impact on an accounting information system,
and built a process in researching into actual state of accounting information
systems operated by the construction joint stock companies in Vietnam. This
thesis has also applied relevant methods in order to perform research into actual
state of accounting information systems.
Fourth, this thesis has performed survey, processing and analysis on
actual state of six matters in accounting information systems operated by the
construction joint stock companies in Vietnam. This thesis has also elucidated
level of satisfaction of all-level management of a company in respect to not only
quality of accounting information but also four factors participating in an
accounting information system.
Fifth, this thesis has found out what achievements and shortcomings
existed in accounting information systems on basis of theory, and found out
research findings and shortcomings from reviewing level of satisfaction of the
users in the construction joint stock companies, and completed six factors that
constitute an accounting information system in direction of accounting
information integration.
2. Shortcomings and new directions for research work
Shortcomings
First, during research into accounting information systems, this thesis has
not studied into accounting information systems by classification of group of
listed companies and group of unlisted companies, because such classification
will cause complication to the rating of efficiency of accounting information