Course Materials

Text books
Course tittle: Principles of Auditing (1) Gay, G. & Simnett, R. (2018). Auditing and Assurance Services in Australia (Seventh Edition).
McGraw-Hill Education.
(2) Auditing – 8th Edition (2019), Auditing Division, School of Accounting, UEH. (Vietnamese)
(Sách Kiểm toán – Xuất bản lần thứ 8, 2019, Trường Đại học Kinh tế TP.HCM)

Workbook

(3) Exercises of Auditing 3nd Edition (2015) (Vietnamese)

(Bài tập Kiểm toán, Trường Đại học Kinh tế TP.HCM,2015, NXB Thống Kê)
(4) Additional exercises delivered by lecturers.

Course Introduction Other materials

Lecturer: Nguyễn Hoàng Tố Loan
Auditing Department, School of Accounting, UEH
(5) Whittington, Ray, & Pany, Kurt. (2012). Principles of auditing & other assurance services (18th
ed.). NY.
(6) Robertson, Jack C., Louwers, Timothy J., & Robertson, Jack C. (2002). Auditing and assurance
services (10th ed.). Boston: McGraw-Hill.
(7) Internal Control (2nd Ed.) University of Economics HCMC (2012), Orient Publisher.
(9) Tran, T.G.T., & Vo, A.D. (2009). Auditor’s professional ethics. Finance Publisher.
(9) Vietnamese Standards on Auditing – (VSA) and Vietnamese Accounting Standards (VAS) 3

Course Information

Text book (1)

Course tittle: Principles of Auditing (1) Gay, G. & Simnett, R. (2018). Auditing
Lecturer and coordinator: and Assurance Services in Australia
oNguyễn Hoàng Tố Loan (Phd., ACCA) (Seventh Edition). McGraw-Hill Education.
oEmail: loannht@ueh.edu.vn

2
 Evaluation
Mid-term exam (40% of the final mark)

Text book (2) (1)Quiz and homework: 20%

(2)Mid-term Test 1: 30%
(2) Auditing – 8th Edition (2019), Auditing (3)Mid-term Test 2: 50%
Division, School of Accounting, UEH.
(Vietnamese) Final Exam (60% of the final mark)

(Sách Kiểm toán – Xuất bản lần thứ 8, - Multiple choice: 50%
2019, Trường Đại học Kinh tế TP.HCM) - Discussions questions: 50%

Syllabus
Number of credits: Three (3) credits
Number of sessions: 11 sessions

Session Allocation Topic Textbook Reading

Session 1 & 2: Topic 1 Introduction to
Workbook Auditing & Independent Auditing
Session 3: Topic 2 Audit environment
(3) Exercises of Auditing 3nd Edition (2015) Session 4 & 5: Topic 3 Internal controls
(Vietnamese)
(Bài tập Kiểm toán, Trường Đại học Kinh Test 1 – (Multiple choice & Discussion questions)
tế TP.HCM,2015, NXB Thống Kê) Session 6,7&8: Topic 4 Audit planning
Session 9&10: Topic 5 Audit evidence
Session 11: Topic 6 Audit report
Session 12 Revision

8
Test 2 (Multiple choice & Discussion questions)
 Responsibilities of Students
Compulsory Reading Materials (2)

Session Textbooks Homework

Session 6, 7, 8 Textbook 1: Chapter 4,5,6 Textbook 1: Exercises in Chapter 4,5,6
v Attending classes: on time and regularly. Audit planning
v Reading before classes: prepared for classes with all necessary Textbook 2: Chapter 3 Workbook : Exercises in Chapter 3
supplies. Session 9,10: Textbook 1: Chapter 4,9 Textbook 1: Exercises in Chapter 4,9
v Completing homework: completing all homework assignments. Audit evidence
Textbook 2: Chapter 4 Workbook: Exercises in Chapter 4
v Participating in classroom activities on LMS
Session 11: Audit report Textbook 1: Chapter 12 Textbook 1: Exercises in Chapter 12

Textbook 2: Chapter 6 Workbook: Exercises in Chapter 6

9 11

Compulsory Reading Materials (1)

Your Learning Process
Session Textbooks Homework
Session 1&2: Textbook 1: Chapter 1 Textbook 1: Exercises in Chapter 1
Introduction to
Auditing & Independent Auditing Textbook 2: Chapter 1 Workbook : Exercises in Chapter 1

Session 3: Audit environment Textbook 1: Chapter 2,3 Textbook 1: Exercises in Chapter 2,3

Textbook 2: Chapter 7 Workbook: Exercises in Chapter 7

Session 4: Internal controls Textbook 1: Chapter 7 Textbook 1: Exercises in Chapter 7

Textbook 2: Chapter 2 Workbook: Exercises in Chapter 2

Session 5: Internal controls Textbook 1: Chapter 8 Textbook 1: Exercises in Chapter 8

Pre-Lecture Preparation Active Attention Post-Lecture Review Practical application
(cont.)
Textbook 2: Chapter 2 Workbook: Exercises in Chapter 2
10
 Manage Your Learning Process Prescribed Reading
Session Topic 1 Materials Exercises Notes
Step 1. Pre-Lecture Prep Step 2. Be Active during Lecture
+ Read the title and chapter objectives + Concentrate on lecture’s contents
+ Read materials to be covered Before + Answer lecturer’s questions 1 Introduction to Textbook (1): Chapter 1 Textbook (1): Chapter 1
During
+ Acknowledge unfamiliar vocabulary Class + Take notes by yourself
Class + Understand professional vocabulary Auditing &
2 Independent Textbook (2): Chapter 1 Workbook: Chapter 1
Auditing

After Class Relevant Guidance (Quy định có liên quan)

ISA200 Overall Objectives of the Independent Auditor, and the Conduct of
an Audit in Accordance with International Standards on Auditing
Step 3. Post-Lecture Review
+ Completing homework/assignments VSA200 Mục tiêu tổng thể của kiểm toán viên và doanh nghiệp kiểm toán khi
+ Utilize your resources (textbook, lecture slides, LMS, thực hiện kiểm toán theo chuẩn mực kiểm toán Việt Nam
supplemental instruction, etc.)
+ Create a study tool from the lecture materials (eg.,
flashcard questions, end-of-chapter questions.)
+ Be familiar with professional vocabulary.
13 15

Learning objectives of Topic 1

Course tittle: Principles of Auditing

1.1 Understand the nature of auditing and assurance services.

Topic 1 1.2 Define auditing & distinguish different types of audits that can be provided by various
auditors.

Introduction to 1.3 Appreciate the development of audit profession.

Auditing & Independent Auditing 1.4 Understand the reasons giving rise to demand for the audit of financial statements.

1.5 Appreciate the objectives of of the Independent Auditor, and the Conduct of an Audit

1.6 Appreciate the role of auditing standards and a general auditing process.

Lecturer: Nguyễn Hoàng Tố Loan

Auditing Department, School of Accounting, UEH 16
 Objectives of accounting
Contents of Topic 1

v“Provide information that is useful to existing and

1 Definition of Auditing & Assurance Service potential investors, lenders and other creditors in
making decisions about providing resources to
the entity”
2 Classification of Audit

3 Development of Audit Profession (Self-study) vThe decisions made by users will involve:
ØInvestment decisions
4 Roles of Independent Audit Service (Self-study) ØFinancing decisions
ØVoting, or influencing management actions
5 Auditors, Audit firms & Professional bodies 17
19

Wondering? How do we assure that accounting information is trustworthy?

Reminding: What is accounting?
è Another one can help !!!
Accounting is the system of:
Ø Recording and summarizing business financial transactions, and
Ø Analyzing, verifying and reporting the results:

Business and financial transactions

(Economic event)

Record that event

(Recognition and measurement)

Report that event

(Disclosure) 18
20
Relationships Among Auditors, Client, and External Users
Key terms of Audit definition
vThe important parts of this definition:
• Systematic process — audits are structured activities
Client or audit Auditor issues
committee hires report relied • Objectivity — freedom from bias
auditor Auditor upon by users to reduce
information risk
• Obtaining and evaluating evidence — allows the auditor
to determine the support for assertions or representations
• Assertions about economic actions and events — describes
the subject matter of an audit
Provides capital
External • Degree of correspondence … established criteria — the
Client purpose of the audit is to determine conformity
Users with some specified criteria
Client provides financial
statements to users • Communicating results — the results must be
communicated to interested parties
21 23

1. Definition of Auditing & Assurance Service (1) Obtaining Evidence and

Evaluating Evidence
A Statement of Basic Auditing Concepts
(ASOBAC-the American Accounting Association) defines auditing as:

Evidence is any information used by the auditor

to determine whether the information being
‘A systematic process of objectively obtaining and evaluating
audited is stated in accordance with the established criteria.
evidence regarding assertions about economic actions and events
to ascertain the degree of correspondence between those assertions
Transaction
and established criteria, and communicating the results to data Written and
interested users.’ electronic Observations
Communications
with outsiders
Client inquiry
22 24
 (2) Information and Established Criteria Three Requirements for
Becoming a CPA
To do an audit, there must be information in a
verifiable form and some standards (criteria) Ø Educational requirement
by which the auditor can evaluate the information.
Ø Uniform CPA examination requirement

Ø Experience requirement
Criteria
FASB IASB

25 27

(3) Auditing should be done by a competent, independent person. CPA Examination Sections

Judgment and Financial

Competence Auditing
Experience Accounting
and And
Independence Attestation Reporting

Evaluation
of Evidence Business
Environment
Regulation
and
Proper Concepts
Conclusion 26
 Fore reference (Tham khảo)
Summary of Audit definition
Definition of auditing (Arens)

assertions about economic

actions and events Auditing is the accumulation and evaluation of evidence about
information to determine and report on the degree of
correspondence between the information and established criteria.
Competent, obtains and
Determines the degree of communicates
independent evaluates
correspondence the results
person evidence
Auditing should be done by a competent, independent person.

Established criteria

31
29

Audit of a Tax Return Example Contents of Topic 1

1 Definition of Auditing & Assurance Service

2 Classification of Audit

3 Development of Audit Profession

4 Roles of Independent Audit Service

30
5 Auditors, Audit firms & Professional bodies 32
2. Classification of Audit 2.1. Types of Audit

Two ways of Classifying

AUDIT PURPOSES (Phân loại theo Mục đích)

The purposes
2.1.1. Operational audit (Kiểm toán hoạt động)
AUDITORS
of Audit
assertions about economic
actions and events 2.1.2. Compliance audit (Kiểm toán tuân thủ)

Competent, obtains and

Determines the degree of communicates
2.1.3. Financial Statement audit (Kiểm toán BCTC)
independent evaluates
correspondence the results
person evidence

Established criteria

33
35

2. Classification of Audit 2.1.1. Operational audit (Kiểm toán hoạt động)

2 ways of classifying

AUDIT PURPOSES (Mục đích)

v OPERATIONAL AUDIT
à efficiency and effectiveness of
operating procedures/methods.
v COMPLIANCE AUDIT
à determine whether specific procedures,
rules, or regulations are followed or not.
v FINANCIAL STATEMENT AUDIT
à determine whether financial statements
are stated in accordance with specified
criteria.
v Purpose (Mục tiêu): An operational audit evaluates the efficiency and
AUDITORS (Chủ thể) effectiveness of any part of an organization’s operating procedures and
methods.
v INTERNAL AUDITORS
èAt the completion of an operational audit, management normally expects
à are employed by organizations to audit for
management with oversight by the board of recommendations for improving operations.
directors
v GOVERNMENT AUDITORS
v Audited Objects (Đối tượng được kiểm toán): They can include the evaluation
à auditors who are working for the of organizational structure, computer operations, production methods,
Government bodies (eg, audit tax returns)
marketing, and any other area in which the auditor is qualified.
v INDEPENDENT/EXTERNAL AUDITORS
à certified public accountant are responsible
for auditing the historical FSs.
34 36
 2.1.1. Operational audit (Kiểm toán hoạt động) Differentiate: Effectiveness & Efficiency
v Examples: vTính hữu hiệu (Effectiveness): là mức độ hoàn thành các
Ø evaluate the efficiency and accuracy of processing payroll transactions in a newly installed
computer system (đánh giá tính hữu hiệu & chính xác của phần mềm tính lương) nhiệm vụ hay các mục tiêu mong đợi.
Ø evaluate the efficiency, accuracy, and customer satisfaction in processing the distribution of
letters and packages by a company such as Federal Express. (đánh giá tính hữu hiệu,
chính xác, mức độ hài lòng của khách hàng trong việc sử dụng dịch vụ thư tín và giao
Actual Results Objectives/Expectation
hàng) Effectiveness: fulfilling a specified function in fact
vTính hiệu quả (Efficiency): đánh giá bằng cách so sánh giữa
v Criteria: It is more difficult to objectively evaluate whether the efficiency
and effectiveness of operations meets established criteria than it is for
kết quả đạt được và nguồn lực đã được sử dụng để tạo ra kết
compliance and financial statement audits. quả đó.
è Also, establishing criteria for evaluating the information in an operational Actual Results Resources/Output
audit is extremely subjective. (Operational auditing is more like management
consulting than what is usually considered auditing.)
Efficiency: achieving maximum productivity with minimum wasted effort or expense
39
37

Example of Operational Audit 2.1.2. Compliance audit (Kiểm toán tuân thủ)
Eg.: Evaluate computerized payroll system for efficiency and effectiveness

v Purpose: A compliance audit is conducted to determine whether the auditee is

following specific procedures, rules, or regulations set by some higher authority.
Number of records processed, costs of
Information
the department, and number of errors v Audited Objects:

Established Company standards for efficiency and

Ø Governmental units, such as school districts, are subject to considerable compliance
Criteria effectiveness in payroll department auditing because of extensive government regulation.
Available Error reports, payroll records, and Ø Many private and not-for-profit organizations have prescribed policies, contractual
agreements, and legal requirements that may require compliance auditing.
Evidence payroll processing costs Ø Compliance audits for funded grant programs are often done by CPAs.
38
40
 2.1.2. Compliance audit (Kiểm toán tuân thủ) 2.1.3. Financial Statement Audits (Kiểm toán BCTC)

v Purpose: A financial statement audit is conducted to determine whether the

financial statements (the information being verified) are stated in accordance with
v Criteria: prescribed procedures and regulations. specified criteria.

v Purpose: Examples: v Audited Objects: financial statements.

Ø Determine whether accounting personnel are following the procedures prescribed by the
company controller (bộ phận kế toán có tuân thủ thủ tục hay không).
Ø Review wage rates for compliance with minimum wage laws (tuân thủ quy định về mức lương
v Examples:
tối thiểu theo luật lao động). Ø Audit a set of financial statements as requirements of Securities and Exchange Commission.
Ø Examine contractual agreements with bankers and other lenders to be sure the company is
complying with legal requirements (tuân thủ hợp đồng cho vay).
v Criteria: accounting standards.

41 43

Example of Compliance Example of Audit of Historical Financial Statements

Eg.: Determine whether bank requirements for loan continuation have been met
Eg.: Annual audit of Boeing’s financial statements

Information Company records Information Boeing's financial statements

Established Established Generally accepted accounting

Loan agreement provisions
Criteria Criteria principles
Available Financial statements and Available Documents, records, and outside
Evidence calculations by the auditor Evidence sources of evidence
42 44
Reference of Vietnameses State Audit: https://www.sav.gov.vn/Pages/to-chuc-bo-may.aspx
 Exercise 1: Examples of the Three Types of Audits 2.2.1. Internal Auditor (Kiểm toán nội bộ)

v Internal auditors: are employed by all types of organizations to audit for

management with oversight by the board of directors. (internal employees)

v Purpose: to conduct financial, internal control, compliance, operation and

forensic audits within their organization (à Internal auditors’ responsibilities vary
considerably, depending on the employer.)

èTo maintain independence from other business functions, the internal audit group
typically reports directly to the president, another high executive officer, or the
audit committee of the board of directors.

Please print it out & fill it by yourself, then take a picture of it and pots it to LMS Certification: Internal auditors often pursue certification as a certified internal auditor
assessment submission. (CIA), and some internal auditors pursue both the CPA and CIA designations.
45 47

2.2. Types of Audit

2.2.2. Governmental Auditor (Kiểm toán Nhà Nước)

AUDITORS (Phân loại theo CHỦ THỂ) v Governmental auditors: are auditors working for the governmental offices.

2.2.1. Internal auditor (Kiểm toán nội bộ)
2.2.2. Governmental auditor (Kiểm toán Nhà nước)
2.2.3. Independent auditor (Kiểm toán độc lập)
v Audited Objects: the primary responsibility is to perform the audit function for
Government, and it has many of the same audit responsibilities as a CPA firm.
v Examples: Audit of tax returns (thanh tra thuế), involving individual income taxes, gift taxes,
estate taxes, corporate taxes, and so on.
v Criteria: applied regulations.

46 48
2.2.3. Independent/External Auditor (Kiểm toán độc lập) 3.1. The development of Auditing Profession
Before 1900
Objective To detect errors and frauds
v Certified public accounting firms: are responsible for auditing the historical
financial statements of all publicly traded companies. Method Verify in details the entire
transactions
v Audited Objects: most other reasonably large companies, and many smaller
companies and noncommercial organizations. (Kiểm tra chi tiết toàn bộ
nghiệp vụ)
After 1900
Give an opinion on truthfulness and
faithfulness of accounting figure
+ Audit sampling (chọn mẫu)
+ Rely on internal control system
+ Audit in the CIS environment.
+ Audit approach techniques based on
risk assessment. Đánh giá rủi ro

User Owners Shareholders, investors, creditors.

49 51

state of the art

Contents of Topic 1 3.2. The development of Auditing Profession in Vietnam

• 05/1991: The first audit firm in Vietnam (VACO) was established

1 Definition of Auditing & Assurance Service • 01/1994: Issued the regulation on independent audit activities (Decree 07/CP).
• 09/1999: Issued the first 4 VSAs.
qui chế hướng dẫn
2 Classification of Audit • 03/2004: Issue a new regulation on independent audit activities (Decree
105/2004/ND-CP)

3 Development of Audit Profession • 04/2005: Establishment of VACPA. hội kiểm toán ra đời. Điểm quan trọng
• 12/2005: Issued 37 standards

4 Roles of Independent Audit Service • 01/2012: Decree 17/2012 / ND-CP, implementation of the Law on Independent Audit
• 12/2012: Re-issued 37 new auditing standards effective from January 1, 2014
5 Auditors, Audit firms & Professional bodies 50
(Circular 214/2012-TT_BTC)
52
International Market of Audit Profession
Contents of Topic 1

1 Definition of Auditing & Assurance Service

2 Classification of Audit

3 Development of Audit Profession

4 Roles of Independent Audit Service

5 Auditors, Audit firms & Professional bodies 55

53

Revenue of the Big Four accounting/audit firms worldwide by region 2019 4. The Roles of External Audit in the Economy
In billion U.S. dollars
4.1. Attributes of accounting information

4.2. Demand for assurance

4.3. Hypotheses explaining demand for assurance

Source: https://www.statista.com/statistics/250944/big-four-accounting-firms-geographical-breakdown-of-revenues/ 54 56
 4.1. Attributes of accounting information
về mặt lí thuyết, ban giám đốc; kế toán trưởng là người lập BCTC
v From AASB/IASB framework, the following attributes of accounting
information provide the basis for the audit function:
Nền tảng của kiểm toán
provide
Good attributes of the basis for the
vFundamental characteristics
accounting information audit function
• relevance
• faithful representation

Fundamental Enhancing
vEnhancing characteristics disclosure stt: công bố thông tin kế toán
• comparability
• verifiability ü Relevance ü Comparability
• timeliness ü Verifiability
• understandability ü Faithful ü Timeliness
Representation ü Understandability
57

Hierarchy of
Accounting Qualities
4.2. Economic Demand for assurance
Reminding: Qualitative Characteristics

Demand Driver Information risk

What is meant
by “Information risk”?
Fundamental
Qualities

Qualitative
Characteristics

Enhancing
Qualities Auditing can have a significant effect
on information risk. 60
58
4.2.1. Demand Driver Information Risk

v Các nguyên nhân:

Demand Driver Information risk
• Động cơ của người cung cấp thông tin (Conflict of interest/motives of provider)
Demand arises because users are not in a position to establish the • Tầm quan trọng/hậu quả của thông tin cho việc ra quyết định (Consequence-the
quality of information)
credibility of the information they are presented with.
• Khối lượng và tính phức tạp của thông tin (Complexity)
• Sự khó khăn trong tiếp cận thông tin (Remoteness of information)

Information
is likely to
be
distorted.
61 63

4.2.2. Information Risk 4.2.3. Solutions?

Consider these following
solutions?
vThis may be due to: Risky?
• Conflict of interest— managers may present biased information, as The users directly check the information
they are also evaluated on the information.
• Consequence— information provided forms the basis of many users’
decisions. Strengthen the legal responsivities of
the Board of Directors
• Complexity— many users do not have the expertise required to
determine the quality of information presented. Compulsorily audited financial
không tiếp cận thông tin
• Remoteness— the separation of owners from management prevents statements
users from assessing information quality.

Auditing can have a significant effect on information risk.

à Home assignment: Please write an essay to explain why we
need assurance service? (less one A4-page, well explanation to get bonus mark) 62 64

Viết 2 3 câu làm sao phải cần kiểm toán tài chính
Benefits of assurance
Contents of Topic 1
Characteristics of demand for assurance results in following
benefits:
• Increased relevance and reliability of assured information means that
1 Definition of Auditing & Assurance Service
shareholders and debtholders will invest with greater confidence,
reducing information risk, and therefore a reduced cost of capital. 2 Classification of Audit

• Financial analysts will make more accurate and informed 3 Development of Audit Profession
recommendations.
4 Roles of Independent Audit Service
Both should result in improved allocation of resources across range of
investment opportunities 5 Auditors, Audit firms & Professional bodies 67
65

Other benefits of assurance 5. Auditors, Audit firms & Professional bodies

Reference: Textbook 1:
Chapter 2 for Australia CPA

An assurance service may also result in one or both of the

following:
1. Auditors (Kiểm toán viên)
• recommendations by the assurance provider to improve the efficiency and 2. Audit firms (Doanh nghiệm kiểm toán)
effectiveness of operations
• a positive influence on the behaviour of people whose activities are being 3. Professional bodies (Hiệp Hội Nghề Nghiệp)
assured.

66 68
5.1. Auditors in Vietnam (1)
Chapter 2. AUDITORS AND PRACTICING AUDITORS
Article 14. Standards of auditors
1. Auditors must meet the following standards:
hành vi năng lực
a) Having full civil act capacity;
b) Having good morals, sense of responsibility, integrity, honesty, objectivity;
c) Having degree of university or higher to be of financial, banking, accounting, auditing
disciplines or other disciplines as prescribed by the Ministry of Finance;
d) Having certificates of auditors in accordance with regulations the Ministry of Finance.
2. Where person who have foreign certificates recognized by the Ministry of Finance, passing
the examinations in Vietnamese on Vietnam law and meeting fully the standards specified in
point a and point b clause 1 of this Article shall be recognized as auditors.
69
Source: LAW ON INDEPENDENT AUDIT
5.1. Auditors in Vietnam (1)
Chương 2 KIỂM TOÁN VIÊN VÀ KIỂM TOÁN VIÊN HÀNH NGHỀ
Điều 14. Tiêu chuẩn kiểm toán viên
1. Kiểm toán viên phải có đủ các tiêu chuẩn sau đây:
a) Có năng lực hành vi dân sự đầy đủ;
b) Có phẩm chất đạo đức tốt, có ý thức trách nhiệm, liêm khiết, trung thực, khách quan;
c) Có bằng tốt nghiệp đại học trở lên thuộc chuyên ngành tài chính, ngân hàng, kế toán, kiểm
toán hoặc chuyên ngành khác theo quy định của Bộ Tài chính;
d) Có Chứng chỉ kiểm toán viên theo quy định của Bộ Tài chính.
2. Trường hợp người có chứng chỉ của nước ngoài được Bộ Tài chính công nhận, đạt kỳ thi
sát hạch bằng tiếng Việt về pháp luật Việt Nam và có đủ các tiêu chuẩn quy định tại điểm a và
điểm b khoản 1 Điều này thì được công nhận là kiểm toán viên.
70
Source: LAW ON INDEPENDENT AUDIT
5.1. Auditors in Vietnam (2)
Chapter 2. AUDITORS AND PRACTICING AUDITORS
Article 14. Standards of auditors
1. Auditors must meet the following standards:
a) Having full civil act capacity;
b) Having good morals, sense of responsibility, integrity, honesty, objectivity;
c) Having degree of university or higher to be of financial, banking, accounting, auditing
disciplines or other disciplines as prescribed by the Ministry of Finance;
d) Having certificates of auditors in accordance with regulations the Ministry of Finance.
2. Where person who have foreign certificates recognized by the Ministry of Finance, passing
the examinations in Vietnamese on Vietnam law and meeting fully the standards specified in
point a and point b clause 1 of this Article shall be recognized as auditors.
71
5.1. Auditors in Vietnam (2)
SPECIFIC PROVISIONS - Section 1 - Article 4 (Circular No: 91/2017/TT-BTC)
Article 4. Eligibility for taking exams
An applicant for audit practicing certificate or accounting practicing certificate must have the following
eligibilities:
1. Meet standards in professional ethics, truthfulness, integrity, and high sense of law observance;
2. Obtain at least a bachelor's degree in finance, banking, accounting, or audit; or a bachelor's degree in
other majors with total units of study (or classes) of subjects: Finance, accounting, audit, financial activity
analysis, or taxation accounting for at least 7% of total units of study (or classes) of the entire course; or
obtain a bachelor's degree in other majors and audit or accounting certific ates or degrees awarded by
international audit or accounting associations as prescribed in Article 9 hereof;
3. Have at least 36 months’ experience in finance, accounting, or audit field, which is determined in the
period beginning from the month of graduation specified in the bachelor's degree (or postgraduate degree)
to the time of application for taking exams. Actual working time includes the period of working as audit
assistant at audit firms, as internal auditor at internal audit department, or as auditor at state audit
agencies;
4. Submit sufficient and required application for examination and exam fees as prescribed;
5. Not subject to Clause 1 and Clause 2 Article 52 of the Law on Accounting.
72
5.2. Audit firms (Certified Public Accounting Firms) 5.2. Services provided by Audit firms
v There are many levels of audit firms: Assurance service ü Audit
ü Review
– Big Four international firms
ü Other assurance services
– National firms
– Regional and large local firms Related services ü Agreed-upon procedures regarding financial information
– Small local firms ü Compilation of financial information

v The largest international firms are known as the 'Big Four'. They are:
Tax services ü Tax consultancy
– PricewaterhouseCoopers
ü Tax planning/reporting
– EY
– KPMG Management consultancy ü Financial consultancy
– Deloitte ü Strategy development

v The Big Four dominate the practice of public accounting, especially for large listed clients. Other services ü Education/Training
73 ü Head hunting 75

5.2. Organizational Structure hệ thống cấp bậc

Hierarchy of a Typical CPA Firm

Breadth of Experience
Ø Proprietorship (Doanh nghiệp tư nhân)
Partners 10+ years

Managers 5-10
Ø Partnership/General partnership (Công ty hợp danh)
Seniors and
In-charge Auditors 2-5
Ø Limited liability company (Công ty TNHH)

Staff Assistants 0-2

74 76
 5.3. Professional bodies
Eg.: Hierarchy of a CPA Firm in Vietnam
v International professional bodies:

Ø The American Institute of CPAs (AICPA)

Chủ phần hùn

Ø The Association of Chartered Certified Accountants (ACCA)

Ø CPA Australia, and so on.

Chủ nhiệm
kiểm toán

v In Vietnam
Trưởng nhóm kiểm toán
Vietnam Association of Certified Public Accountants – VACPA
(established in 2005 and started to operate from 1/1/2006)
Trợ lý kiểm toán 77 79

5.2. Audit firms Questions & Discussions

Văn bản

78