The work of preparing year-end financial reports to submit to superiors or to complete assigned tasks is an important result of the accounting department. The person ultimately responsible is the chief accountant, but the person doing it is the general accountant. However, to prepare financial reports quickly, it is necessary to review the following issues during the working process.
ASSETS
1. Cash
There is no cash balance record, the inventory record lacks the signature of the cashier and chief accountant; no inventory council is established, there are no signatures of the Director and members of the Fund Inventory Council on the record.
The inventory record has a surplus amount up to the unit dong.
The approval process for receipts and payments is not strict, not implemented in accordance with the process, the receipts and payments do not have enough copies as prescribed.
The amount on the receipts and payments is different from the accounting books.
Cash receipts and payments are not recorded in the correct period.
There are cash receipts and payments with large amounts, exceeding the limit in the financial regulations. There are many cash receipts and payments before and after the closing date.
There are many cash funds.
The cash fund balance is negative due to recording payment vouchers before receipts.
The difference between actual cash balance and the fund inventory record.
Receipts and payment vouchers are not properly prepared (lacking the seal or signature of the unit head, chief accountant, cashier, etc.); do not have or do not match the accompanying valid and reasonable vouchers; have not been numbered in order, the vouchers are written incorrectly and are not fully retained; the payment content is not in accordance with business activities.
Payment exceeds the cash limit according to the Company’s financial regulations but there is no decision or approval from the unit head.
Payment vouchers for debt payment to sellers whose recipients are officers and employees in the Company but there is no receipt or receipt of money from the seller attached to prove that this amount has been paid to the seller.
Violation of the principle of non-concurrent holding of positions: the cash accountant is also the cashier, accounting vouchers are placed together with cash vouchers, cash books and accounting books are not separated…
The cashier has a family relationship with the Director or chief accountant.
Wrongly recording the payment diary; the number of items, cash books, do not match the content and amount.
Recording, classifying, and reflecting inappropriately (not accounting for money in transit …)
There is a phenomenon of overspending or missing accounting for arising revenue and expenditure transactions.
The same invoice is paid twice, the payment is larger than the amount stated on the contract or invoice.
There is no periodic cash fund report, the cashier and accountant do not regularly reconcile.
Accounting for foreign currency revenue and expenditure using inconsistent methods, not tracking the original currency.
At the end of the period, foreign currency is not revalued or is not valued according to the interbank foreign exchange rate at the end of the year.
Listing prices or signing contracts in foreign currency.
2. Bank deposits
Accounting according to the bank’s debit and credit notices is not timely.
Not opening a detailed tracking book for each bank.
Not reconciling the end-of-period balance with the bank.
Opening multiple accounts at multiple banks makes it difficult to check and control the balance.
There is a phenomenon of bank accounts being frozen.
Discrepancies between accounting books and bank reconciliation records, and balance sheets of arising numbers.
Unreasonable reflection of over-balance withdrawals, deposits, loan interest, etc.
The person signing the check is not the authorized person.
There are too many money transfer transactions on the closing date to take advantage of the delay in sending the bank’s notice.
Transferring money to the wrong recipient or the recipient has no economic relationship with the unit.
The recipient’s name on the payment order and the debtor’s name of the units do not match.
Not tracking the original currency for foreign currency deposits.
Not yet revaluating the foreign currency balance at the end of the year or applying the wrong revaluation exchange rate.
Not fully accounting for bank deposit interest or accounting for bank deposit interest does not match the bank subsidiary ledger.
3. Short-term financial investment
Not opening a detailed ledger for each type of securities.
Not making provisions for short-term securities investment devaluation.
Not accounting for securities trading profits and losses or accounting without full invoices and documents.
Other short-term investments are not investments but are other receivables (receipts for wrongly distributed payments to staff).
At the end of the period, no re-evaluation of the provision to reverse the provision or make additional provisions.
There is no valid documentary evidence to prove the investment.
There is no confirmation from the investment recipient about the Company’s investment.
4. Customer receivables
Not offset with the same subject or offset debt with different subjects.
There are no financial regulations on debt collection.
There are no detailed books to track each receivable subject in detail.
The same subject but tracked on many different accounts.
The credit approval process is not complete and strict: there are no regulations on maximum debt amount, payment term, etc.
No reconciliation or incomplete debt reconciliation at the time of preparing the Financial Statement.
The difference between the reconciliation minutes and the accounting books has not been processed.
The difference between the detailed books, general ledger, and balance sheet.
Incorrectly accounting for the content, amount, and nature of the receivable account, accounting for receivables that are not commercial receivables in account 131.
The basis for accounting for debt is not consistent according to invoices or warehouse delivery notes, so the debt reconciliation does not match the number.
Accounting for reduction of receivables for returned goods, sales discounts but without valid invoices or documents.
Recording prepayments to sellers without valid documents. Prepayments for goods to sellers or having long-term, regular economic relationships with other economic organizations but not signing economic contracts between the two parties.
Recording increases in receivables is inconsistent with recording increases in revenue. The work of circulating documents from the warehouse department to the accounting department is slow, so accounting for receivables when selling goods does not have warehouse documents such as delivery notes…
There are large amounts of receivables collected in cash, with no specified deadline for submission, so employees appropriate capital or embezzle.
Many receivables are overdue, of unknown origin, have been outstanding for many years but have not been processed.
At the end of the period, receivables in foreign currencies have not been re-evaluated.
No classification of debt age, no effective debt collection and management policy.
The debt write-offs have not been fully collected according to regulations. Not tracking the bad debts that have been processed.
Not accounting for interest on overdue debts.
Not classifying receivables according to new regulations: classifying long-term and short-term.
Accounting for receivables in the wrong period, customers have paid but not accounted for.
Monitoring the collection of late interest from agents due to exceeding the outstanding debt but not identifying each subject in detail to have recovery measures.
Not setting up provisions for bad debts or setting up provisions but making insufficient or over-deducting, exceeding the allowed rate.
The provisioning records are not complete according to regulations.
Not establishing a bad debt handling council and collecting complete records of debts that have been written off for buyers.
The total provision for bad debts is greater than 20% of the total outstanding receivables at the end of the period.
At the end of the period, there has not been a re-evaluation to reverse the provision or make additional provisions.
5. Other receivables
Not tracking other receivables in detail.
Not reconciling unusual receivables, missing assets awaiting processing without inventory records, unable to determine the cause of the shortage to assign responsibility.
Accounting in account 1388 for some items that are not of the correct nature.
Not classifying other short-term and long-term receivables according to regulations.
6. Inventories
No inventory of HTK at 31/12 of the fiscal year.
Recording inventory without full valid invoices and documents: no warehouse receipt, no delivery and receipt minutes, no inventory quality assessment minutes.
Incorrectly determining and recording the original price of inventory.
Recording warehouse receipts without valid invoices and documents: purchasing goods in large quantities but without contracts, purchase invoices are not in accordance with regulations (purchasing agricultural products only making a list without writing an invoice for purchasing agricultural products according to regulations of the Ministry of Finance).
Not performing warehouse entry procedures for each import but the warehouse entry notes are combined for a long period of time.
Not regularly reconciling between the warehouse keeper and accountant.
Differences between actual inventory and accounting books, warehouse cards, differences between detailed books, general ledgers, and accounting balance sheets.
Not yet establishing regulations for managing materials, goods, material consumption norms or inappropriate norms.
Poor management of inventory loss and preservation. At the end of the year, the unit did not review and control the shelf life and physical and chemical characteristics that could lead to damage of each type of inventory, did not review the conditions for storage, preservation, and arrangement in the warehouse to ensure compliance with technical standards.
Not separating the warehouse keeper, HTK accountant, purchasing department, and goods receiving department.
Not accounting on account 151 when goods arrive but the invoice has not arrived yet.
Not making timely warehouse receipts and delivery notes, accounting for delivery when not yet recorded in the warehouse.
The warehouse receipt and delivery notes are not in accordance with regulations: not numbered in order, duplicated numbers, missing signatures, inconsistent indicators, etc.
Not making a detailed list for each delivery note, not writing a separate delivery note for each delivery.
The value of imported inventory is different from the value on the invoice and the costs incurred.
Not making a detailed list for each delivery note.
Slow monthly settlement of materials used.
Not making a monthly and quarterly summary of import – export – inventory; a summary of the quantity of each type of raw material in stock to compare with the data in the accounting books.
Not making a price list for each type of inventory.
Not making a record of inspection of imported materials, purchasing goods with incorrect specifications, quality, type… but still accounting for import.
Incorrect accounting: not accounting according to the material delivery note and the warehouse receipt of materials that have been delivered but not used up, but only accounting for the export of goods based on the difference between the material delivery note and the material re-import note.
The export data is not correct with the actual export data.
Exporting and importing goods but not actually exporting, actually importing but recording false data.
The minutes of destroying poor quality inventory do not clearly state the technical method used for destruction.
Accounting for inventory kept on behalf of others in account 152 without monitoring on off-balance sheet account 002.
Raw materials, supplies, and goods of poor quality according to the minutes of determining the enterprise value are not exported from the books.
When preparing consolidated financial statements, inventory in accounts 136, 138 at the branch is not adjusted to account 152.
Recovered scrap is not accounted for. Excess exported raw materials are not accounted for back in the warehouse.
Incorrect accounting: Inventory imported and exported directly without going through the warehouse is still entered into accounts 152, 153.
Not accounting for goods on consignment, or accounting for transportation and loading costs in goods on consignment, delivering goods on consignment but not signing a contract, only writing a normal warehouse delivery note.
The method of calculating the warehouse price, determining the value of unfinished products is not suitable or inconsistent.
Misclassifying fixed assets as inventory (tools, equipment), not classifying raw materials, tools, equipment, finished products, goods.
Allocating tools and equipment according to inappropriate and inconsistent criteria; there is no spreadsheet for allocating tools and equipment issued during the period.
Not setting up provisions for devaluation of inventory or setting up provisions not based on market prices, setting up provisions for goods kept on behalf of others that are not owned by the unit. Setting up provisions without sufficient valid records.
Not handling excess or shortage of materials and goods discovered during inventory.
Not tracking in detail each type of material, raw material, goods, etc.
Not comparing, checking, confirming with customers about inventory received for safekeeping.
Accounting for import and export of inventory in the wrong period.
Negative unit price and quantity of inventory due to slow document circulation, writing warehouse delivery notes before writing warehouse receipt notes.
Internally releasing inventory at fixed prices instead of production costs.
Exporting materials but not accounting for costs.
Exporting materials for production, only tracking quantity, not tracking value.
Not tracking finished products and waste products separately according to accounting and technical criteria, not handling waste products.
Accounting for temporary imports and exports without appropriate documents or at provisional prices when goods arrive without invoices but are exported for immediate use, but not yet following actual prices to match when receiving invoices.
Not tracking goods sent for sale on inventory accounts or delivering goods sent for sale but not signing contracts but only writing regular warehouse delivery notes.
Goods sent for sale have been accepted for payment but are still kept in account 157 without recording payment and transferring cost of goods.
Goods and finished products are stagnant, in inventory for a long time with large values and no measures have been taken to handle them.
7. Advance
Advance payments have not been reconciled with the subjects.
Details of each advance subject have not been tracked.
Differences in accounting numbers and advance payment reconciliation records.
Signatures on advance payment reconciliation records are different from signatures on attendance records and salary payment records.
Advance payments to subjects outside the company.
Advance payment regulations have not been established, advance management regulations are not strict: late advance payment, too many advances…
The advance payment request does not clearly state the refund period, amount, reason for use, and does not have the signature of the chief accountant.
The advance balance at the end of the year is large. The advance payment has been overdue for a long time and has not been processed.
Advance debt for employees who have transferred jobs has not been recovered.
Improper use of advances.
8. Deductible VAT
Accounting and declaring incorrect tax rates.
Accounting and declaring at the wrong time, 3 months past the deadline but still declaring VAT deduction.
VAT invoices with missing or incorrect content.
Declaring tax deduction without invoices or invoices of bankrupt or dissolved units.
Declaring VAT deduction for goods not subject to VAT.
Differences in books and tax declarations, with no explanation.
Declaring and accounting for deductions for direct VAT invoices or invoices not subject to VAT, invalid or illegal invoices.
Declaring tax deductions and invoices paid from other sources.
Discounted goods have not been accounted for input VAT reduction.
Declaring missing or incorrect invoices, invoices not in accordance with the prescribed form of the Ministry of Finance or the self-printed invoice form registered with the Ministry of Finance.
Declaring deductible input tax for all raw materials used for the production of goods directly subject to VAT.
Incorrect declaration of VAT on imported goods.
Offset deductible VAT and VAT payable of branches on consolidated financial statements.
Accounting for input VAT deduction greater than output VAT payable, leaving a negative number on the financial statements.
In case of canceling VAT invoices and re-issuing other invoices, the buyers on these two invoices are not the same.
9. Goods on consignment
Goods on consignment have not been accepted for payment but have been accounted for as an increase in revenue.
Returned goods on consignment have not been accounted for.
10. Pledges, deposits, and bets
There are no valid invoices, documents, contracts, or commitments.
The contents of the deposits and bets are unclear.
There is no confirmation of the balance with the recipient of the deposit or bet on the closing date of the accounting books at the end of the year.
Incorrectly accounting for pledges, deposits, and bets in other receivables account 138.
Not tracking each type in detail.
11. Tangible & intangible fixed assets
Unstable management of fixed assets: Incomplete fixed asset records, fixed assets have not been transferred to the unit but have been recorded on the Balance Sheet; there are no detailed books or cards for each fixed asset.
No inventory of fixed assets at the end of the period, the inventory record does not classify unused fixed assets, fixed assets awaiting liquidation, and fully depreciated fixed assets. The difference in the books compared to the inventory record has not been processed.
Documents related to fixed assets are not kept separately from accounting documents.
Fixed assets put into operation without handover records, delivery records.
Fixed asset increases are not recorded in a timely manner according to the handover records (incorrect accounting period).
Fixed asset increases are recorded without full invoices and valid documents: project settlement, acceptance records, handover for use, etc.
Not keeping detailed records of capital sources for fixed asset formation. Not keeping separate records of fixed assets pledged or mortgaged.
Incorrect classification of intangible fixed assets: land use rights value, compensation and site clearance costs… Recording an increase in the original price of intangible fixed assets with contents that are not in accordance with regulations such as the cost of establishing the Company, costs in the research phase…
Difference in original price, accumulated depreciation between the balance sheet, general ledger, detailed ledger.
Incorrect classification: assets that do not meet the criteria for recording fixed assets but are still recorded as fixed assets, accounting for tangible fixed assets and intangible fixed assets.
Not yet making a payment voucher for completed self-made construction volume.
Upgrading fixed assets completed but not yet recording an increase in the original price of fixed assets, not yet determining the useful life and adjusting depreciation that must be deducted into expenses in the period.
Accounting for an increase in the original price of fixed assets with contents that are not in accordance with regulations: recording in the original price of fixed assets costs incurred when the fixed assets have been put into use such as interest expenses that cannot be capitalized; Major repair costs of fixed assets that are not upgrades, do not increase capacity or usage time; increase original price not in accordance with the handover and acceptance minutes…
Not registering depreciation method with local tax authorities.
The unit applies inappropriate and inconsistent calculation and depreciation methods, determines the useful life unreasonably, the depreciation rate is not in accordance with regulations, exceeds the maximum depreciation rate or is lower than the minimum depreciation rate deducted into expenses in the period as prescribed in Decision 206.
Deduct or stop deducting depreciation on a full month or quarter basis without following the date the fixed asset is put into use or stops deducting according to the date of cessation of use.
Accumulated depreciation is not accurate, depreciation in parts is not allocated.
Assets that have expired but have not yet fully depreciated. The amount not fully depreciated is not accounted for in expenses in the period.
Depreciation is still deducted for assets that have been fully depreciated but continue to be used.
Depreciation is included in the cost of fixed assets not used in production and business activities.
Depreciation is included in operating leased assets or not deducting depreciation for financial leased fixed assets. Not monitoring off-balance sheet for operating leased fixed assets.
Not fully implementing procedures for liquidating fixed assets: establishing a fixed asset liquidation council, liquidation decision, no liquidation minutes or minutes without the signature of an authorized person…
Not issuing invoices when selling liquidated fixed assets.
Accounting for reduction of fixed assets when in fact they have not been liquidated, dismantled, there is no decision of the Board of Directors, Director,…
Not fully and promptly accounting for income from liquidating fixed assets.
Investing in fixed assets before approval by competent authorities or not included in the approved investment plan.
Investing in fixed assets with incorrect sources and purposes: Fixed assets serving public interests are invested.
Depreciating assets invested in other sources for production and business expenses.
Depreciation time is not according to the time of recording fixed assets.
Implementing accelerated depreciation but not registered with the local tax authority and the business results in the year are at a loss. The accelerated depreciation rate exceeds 1.2 times compared to depreciation by the straight-line method.
Fixed assets that are no longer in use and have not been liquidated. Fixed assets that are not needed and are awaiting liquidation have not been removed from the books according to the minutes of determining the enterprise value, and are not monitored for off-balance sheet assets, but are still calculated and depreciated into expenses.
Fixed assets transferred internally have a remaining value on the transfer decision that does not match the accounting books.
Tangible fixed assets with an original value of less than 10 million have not been converted into tools and equipment according to Decision 206/BTC.
Fixed assets received for handover and capital contribution must be re-evaluated.
Unreasonable investment in fixed assets: too much or using short-term loans for investment.
Assets received for mobilization and transfer according to the decision of superiors are only recorded as increasing the original price without recording the depreciated value.
Financial leased fixed assets are accounted for in accounts 211,213.
The recorded value of fixed assets is not appropriate, donated fixed assets are not recorded at fair value, assets received for handover or capital contribution are not re-evaluated upon delivery…
Internal transfer of fixed assets, the remaining value on the transfer decision and the accounting books do not match.
Some fixed assets have different remaining useful lives but are grouped together into one asset or a group of assets.
Fixed assets invested with state budget capital, for employees to use but no money is collected to recover investment capital.
Fixed assets have not been re-evaluated when equitizing the enterprise or have been evaluated but are not appropriate.
12. Financial leased fixed assets
Not opening a financial leased fixed asset tracking book
Missing a lease contract.
Misclassifying financial leased fixed assets and operating leased fixed assets.
Original price of financial leased fixed assets, accounting for depreciation of financial leased fixed assets not in accordance with the lease contract.
Not tracking or allocating rental interest to expenses of periods not according to reasonable criteria. Accounting for interest on financial leased fixed assets into the original price of financial leased fixed assets.
13. Joint venture capital contribution
No records or capital contribution contracts.
No balance reconciliation with the unit receiving the joint venture capital contribution.
Contributing capital not in accordance with the joint venture contract.
Contributing capital to a joint venture with assets but not having a record of handover and receipt of assets, re-evaluating assets.
When participating in a joint venture capital contribution, not researching and evaluating the business performance and financial situation of the partner, leading to the joint venture company suffering losses, the capital contributing unit will be divided the loss corresponding to the capital contribution ratio.
14. Unfinished basic construction
The unfinished basic construction cost at the end of the period is not determined appropriately, only based on estimates.
There is no plan or design estimate for basic construction projects, major repairs of fixed assets, etc.
There is no detail of the final basic construction investment for which project.
The unfinished basic construction cost has been accumulated for many periods and has not been processed or invested in further…
Incomplete investment procedures: no investment decision, no decision to approve the estimate, no bidding, no offering…
Investment documents and payment documents are not tight: purchasing equipment without invoices, paying money to foreign partners, not making payments through banks.
The expenses for basic construction activities do not have valid invoices or documents.
The value on the detailed investment report for each project is different from the accounting book.
Major repairs are carried out without the approval of the Corporation/achieving a low rate.
Incorrect accounting: major repair costs are not recorded as an increase in original price but included in the production and business expenses of the period.
Allocating general production costs and depreciation costs to the value of the project is unreasonable and does not have appropriate allocation criteria.
The completed and handed-over project has been put into use but has not yet accounted for an increase in fixed assets or depreciation.
Accounting for unfinished construction costs without full invoices, documents or incomplete collections.
Major repairs without a plan or budget. Repairs without a damage report, and upon completion, there is no final settlement of repair costs or minutes of acceptance of completion and handover.
15. Internal receivables
There is no record of debt reconciliation with the debtor at the end of the year. The data in the accounting books does not match the data in the record of internal debt reconciliation.
Not tracking in detail each entity that has a payment relationship with the unit.
Accounting for internal receivables without full invoices and valid documents.
Accounting for internal receivables in the wrong period.
Offsetting internal receivables and payables to the wrong entity or the same entity but not offsetting when preparing the balance sheet.
Accounting for internal receivables with independent accounting units, not in the nature of collection and payment on behalf of others.
Offsetting debts with third parties without a record.
Accounting for internal receivables with independent accounting units.
16. Unfinished production and business expenses
Accounting for some items that are not consistent with the content and nature of expenses.
The method of evaluating unfinished products is inconsistent between accounting periods.
There is no inventory record of unfinished construction volume at the end of the period.
Not fully accounting for incurred expenses or accounting for some expenses exceeding the prescribed level.
Accounting for expenses without full invoices and valid documents.
Accounting for expenses in the wrong period.
Completed products but no need to be transferred.
17. Prepaid expenses, expenses awaiting transfer
Unreasonable and inconsistent allocation of prepaid expenses.
There is no policy for allocating prepaid expenses.
Not opening a book to track each type of actual expense incurred, the content of each type of expense is not clear and specific.
Putting sales expenses and business management expenses into expenses awaiting transfer without allocating them to expenses to determine appropriate business results according to regulations, account 142 still has a balance.
Classifying short-term prepaid expenses and long-term prepaid expenses is not appropriate.
Expenses related to many periods but not allocated or allocated according to inappropriate and inconsistent criteria.
Put aside expenses that do not follow certain criteria.
18. Long-term investment
Not yet re-evaluated the number of securities at the end of the fiscal year, closed the books and prepared the report.
Not yet opened a detailed tracking book for each type of investment securities.
Not yet made provisions for securities with depreciation at the end of the fiscal year. Making provisions without basis.
There is no basis to prove the investment.
The figures in the accounting books and the balance sheet do not match.
There is no confirmation from the investee about the investment.
19. Business expenses
The figures in the accounting books do not match the figures on the balance sheet.
Business expenses are not recorded in account 161 but are recorded as a reduction in the source of business expenses.
Recording a reduction in business expenses without a record of acceptance and settlement of the competent authority.
At the end of the accounting year, the business expenses of this year are not transferred to the business expenses of the previous year.
Fixed assets formed from career funding sources must not be accounted for as an increase in career expenditures. Depreciation of fixed assets formed from career funding sources must not be accounted for as a decrease in career expenditures but must be accounted for as expenses or accounted for incorrectly or insufficiently.
LIABILITIES AND OWNER’S EQUITY
1. Short term loans, long term loans
Not keeping detailed track of the amount borrowed, interest, loan amount paid (principal and interest), remaining amount to be paid for each lending entity, each loan agreement, each loan purpose.
Accounting policies and methods applied to loan items are unreasonable and inconsistent. Loan interest is not calculated but accounted for based on bank notifications.
Original loan documents and payment documents are not complete and valid. When borrowing, there are not complete receipts, bank credit notices or payment documents, when paying, there are no payment vouchers or bank debit notices or these documents lack elements and signatures of related people. Loan agreements do not clearly state the repayment period.
Differences between debt acknowledgment contracts and receipts for money, goods, assets or interest payment, principal repayment transactions and payment and disbursement documents.
Loan records are not kept properly.
Incomplete and inaccurate accounting of loan interest payable during the year according to the loan contract and debt acknowledgment contract.
Accounting for expenses exceeding the actual loan interest payable during the year.
Accounting for loan interest in expense objects that are not in accordance with regulations: accounting for general production costs without reflecting in financial expenses.
Misclassifying short-term loans into long-term loans and vice versa.
Management and accounting for loans and loan interest are not appropriate: accounting for loan interest in construction costs or increasing the original value of fixed assets without accounting for financial operating expenses.
Recording short-term and long-term loan data is not complete compared to the actual amount incurred. Not accounting for the reduction in loan amount that is cleared.
Accounting for loan interest of external units or officers and employees that exceeds 1.2 times the bank interest rate at the time of borrowing.
Not accounting for or not accounting for long-term loans if due to be paid as long-term debt due as prescribed on December 31 according to the repayment plan stated in the long-term loan contract.
Not signing loan contracts with employees and not having a reconciliation of loan capital of employees.
Using loan capital not for the purpose stated in the loan contract.
The unit’s ability to repay loans is low, the unit often has to roll over debt to pay off due loans.
Confusing between capitalized and non-capitalized borrowing costs.
Not re-evaluating short-term and long-term loan balances in foreign currencies at the average inter-bank exchange rate at the time of preparing the financial statements or not at the actual exchange rate at the end of the year.
Not reconciling loan balances at December 31. The reconciliation number and the book number have differences because unpaid interest has not been accounted for in the loan principal.
Not classifying loans by loan age.
Long-term debts that have been written off but do not have sufficient documents as prescribed. For overdue debts, the Company has no plan to repay or request an additional extension.
Not tracking the original currency of foreign currency loans or repaying foreign currency loans in detail.
Data on the financial statements, general ledger and detailed ledger do not match.
Incorrect presentation on the financial statements. Failure to properly implement the principles of authorization and approval.
2. Payable to seller
There is no detailed accounting for each payable entity (seller, supplier of materials, goods, services or main and sub-contractors). There is no classification of payables such as payables to third parties, long-term payables or problematic ones…
Payables that are overdue (or have not been resolved for a long time).
Reconciliation of payables with sellers at the end of the year has not been performed or not fully reconciled.
The balance of payables in the accounting books is different from the payables reconciliation report but has not been processed.
Payables are incorrectly accounted for during the period.
Inappropriate debt tracking: tracking on two codes for the same entity, not offsetting debts of the same entity.
Detailed tracking of payables in original currency for payables with foreign currency origin is not performed.
At the end of the period, the balance of payables with foreign currency origin has not been re-evaluated according to the inter-bank exchange rate at the time of preparing the financial statements.
Misclassifying other payables into payables to sellers, not classifying commercial and non-commercial payables, accounting for incorrect economic content.
There is no debt age analysis table to plan payment, overdue debts have not been paid.
Interest payable to sellers for deferred payment has not been accounted for.
Not accounting for reduction of payables in case of sales price reduction or trade discount, payment discount.
Accounting for entrusted import and export is not in the correct accounting period and monitoring of work with foreign partners is not appropriate.
Management and accounting for payables are not appropriate and tight. Payables with unidentified creditors have been accounted for as increased income, but there is not enough valid evidence.
Offsetting the balance of prepayments to sellers with the balance of payables to sellers of different subjects.
The figures on the general ledger and the detailed ledger, the balance sheet of arising numbers do not match and do not match the original invoices, documents or do not match the confirmation letter of the Auditor.
The recorded payables are not based on invoices and documents or the invoices and documents are invalid.
The payables to third parties do not have valid documents, are not recorded, reflected, presented or reflected unreasonably.
The figures on the cash book and bank deposits with the total arising Debits on the payable account do not match, there is a large difference.
The payment to the seller in cash with a large value through the Company’s employees shows that the cash management is not strict, which may cause risks that are unfavorable to the Company or lead to the appropriation of the Company’s capital for personal purposes due to receiving money not on time for payment.
Do not record late interest on overdue payables.
The payables to the seller that are not subject to other income have not been processed.
In case the goods arrive but the invoice has not arrived, the unit reflects the value incorrectly and has not adjusted or adjusted incorrectly when the invoice arrives.
The warehouse entry procedure is slower than the payment entry, causing the balance of account 331 to be debited on December 31, but in fact this is not an advance payment to the seller.
Transactions with large amounts of money do not sign a purchase contract with the seller.
3. Taxes and amounts payable to the State budget
Not keeping detailed track of each tax, fee, and charge payable and paid.
Incorrect management and accounting of output VAT: not writing invoices when selling goods, applying incorrect output VAT rates, calculating incorrect taxable prices.
Incomplete and inappropriate accounting and declaration of VAT. Accounting for VAT deductions for invalid invoices (missing tax codes, signatures of buyers, etc.) or direct added invoices, invoices paid from KPCCĐ sources, welfare funds, payments not serving production, etc. Accounting for VAT reduction and increasing profits for VAT exemptions and reductions.
Inappropriate management and accounting of resource tax: not accounting for account 627 but accounting for account 642, accounting for resource tax at provisional prices when there is no announcement of resource tax calculation prices from the local Tax Department.
The basis for calculating resource tax is not appropriate: calculating resource tax on the price including transportation, loading and unloading, and warehousing costs; not calculating resource tax on exploited resources in the period but not yet sold or consumed; calculating resource tax on the volume of resources when not yet excluding all miscellaneous goods.
The balance on account 3331 (VAT payable) on the financial statements has a negative balance due to the deduction of input VAT exceeding the output tax.
The output VAT data on the accounting books does not match the data on the tax declaration and VAT invoice (due to incorrect declaration, omission, or duplication of some VAT invoices). Tax declaration is incorrect in the serial number and date of invoice issuance on the VAT declaration.
Incorrectly accounting for VAT amounts in cases of returned goods, sales discounts, and calculating output VAT for promotional goods, advertising, and trade fairs.
Accounting for output VAT deduction is not valid: there is no contract cancellation record when the invoice has been torn off, there is no written opinion from the tax authority on this matter.
In case of loss or misplacement of VAT invoices, the unit does not handle them in accordance with regulations and accounts for them incorrectly.
Goods and services that do not meet the conditions to be considered as exports are still subject to a 0% tax rate.
Management and accounting for import tax and import VAT are not appropriate, incorrect tax calculation price, incorrect tax rate. Import-export tax refund transactions lack necessary documents and do not reflect this tax refund in the accounting books.
Calculating tax for goods that are not actually subject to import-export tax such as transferred goods, imported into export processing zones, transit goods for humanitarian aid, etc.
Export tax is calculated on the price without separating transportation and insurance costs, etc.
Paying import tax on behalf of the entrusted unit but not yet issuing an invoice.
Do not calculate output VAT on goods and services subject to VAT under the deduction method in the case of internal consumption (paying salaries, bonuses to employees) or due to the exchange of goods.
Confusing goods and services not subject to VAT with those subject to a tax rate of 0%.
Land use tax and business license tax are not accounted for in account 333 but are accounted for in production and business expenses in the payment period.
Not accounting for and declaring personal income tax for employees subject to high income tax, not deducted at source according to the Ordinance on taxes for high-income earners.
Accounting and paying personal income tax for some high-income officials with amounts higher or lower than the actual amount payable. Under-accounting for personal income tax on commission and brokerage expenses.
Determining personal taxable income does not exclude social insurance and health insurance payments from employees’ salaries.
Not yet determined the preferential conditions for tax rates and tax exemption years as prescribed in Circular 128 and Decree 164.
Not yet accounted for the additional tax payable in the year. Submitting the tax settlement report to the tax authority later than the prescribed time.
Not yet accounted for land rent but there is no official document from the competent authority on land rent exemption or reduction. Not yet signed a land lease contract with the local Department of Natural Resources and Environment.
Incorrectly determining the taxable income for corporate income tax due to accounting for reasonable expenses for tax calculation purposes not in accordance with regulations, recording other revenue and income items incorrectly; calculating the cost of goods sold in the wrong period or incorrectly.
Not yet separating taxable income and non-taxable income.
Not yet summarizing tax settlement.
The unit does not provisionally pay corporate income tax quarterly with the amount that the unit has declared.
The unit has carried out loss transfer to calculate corporate income tax payable for this year but has not registered for loss transfer with the tax authority. It is eligible for tax exemption and reduction but has not yet filed a tax exemption and reduction application.
Fines and arrears from the tax authority have not been accounted for in other expenses.
Long-standing tax arrears have not been processed.
Corporate income tax payable in the following year has not been determined and accounted for after deducting the previous year’s loss.
Land use tax and business license tax are not accounted for in Account 333 but are accounted for in production and business expenses in the period.
4. Salaries and other payments to employees
There is no salary plan, only a salary payment plan for employees.
There is no salary payment regulation approved by the competent authority, the method of calculating and paying salaries is inconsistent.
There is no registration with the local tax authority about the total salary fund to be paid in the year based on the salary calculation method along with the submission of the corporate income tax return.
There is no basis for determining the salary fund.
Overspending the salary fund.
Using the salary fund for the wrong purpose.
Determining the salary fund is not suitable for the level of completion of the profit plan, so accounting for expenses is higher or lower than the actual amount.
Deducting the salary fund according to the unit price assigned by the corporation.
Not determining and deducting the salary fund when the Company fails to implement the assigned production and business plan.
Inappropriate salary management and accounting: salaries paid to employees are directly accounted for in production and business costs without being accounted for through the salary fund as prescribed.
Salary settlement is not timely. Salary payment to employees is slow.
Abnormalities and exceptions appear in the salary of the Board of Directors.
Payment of fake salaries: fake employees, fake records, employees who have left the unit are still paid. Declaring overtime hours compared to reality.
Accounting for salaries and deductions from salaries is not in the correct period.
Accounting for some items of salary nature such as meal allowance, overtime pay… into expenses without going through account 334.
Not fully signing labor contracts with employees as prescribed.
Timesheets and salary payment sheets do not have the necessary signatures such as the signature of the recipient, the school accountant, there is a phenomenon of signing on behalf of others.
Not deducting from salary the compensation for damages, losses, and violations of employees.
Payment of allowances and other amounts other than the basic salary without specific policies and decisions of the Director.
Accounting for salary advances in account 141 without accounting for reduction of payables to employees as prescribed.
No contracts with temporary employees, seasonal employees as prescribed.
Salary increase transactions without salary increase decisions approved by competent authorities at the most recent time attached.
Accounting for all social insurance, health insurance, and labor costs in case 622 without allocating to sales departments, business management, and workshop management as prescribed.
The arising numbers in the accounting books do not match the figures in the employee’s salary books.
5. Payable expenses
Accounting for expenses that have not yet arisen in the production and business expenses of the period when there is no reasonable and reliable evidence of expenses that must be provisioned in advance in the period: no loan contract, no vacation salary plan, no plan for major repair of fixed assets.
Accounting in advance for expenses that are not included in production and business expenses or not provisioning in advance for long-term loan interest expenses in the period, major repair costs of fixed assets, vacation salaries of production workers, product and goods warranty expenses into payable expenses in the period.
There are no regulations on provisioning in advance for payable expenses or transferring these amounts to expenses in the period.
Recording payable expenses into production and business expenses in the period that do not correspond to revenue. Not yet settling payable expenses with the actual expenses incurred at the end of the accounting year, not yet handling the difference.
Accounting in this account transactions that do not comply with the nature of the account according to regulations. Accounting for expenses suspended in payable expenses to reduce expenses in the year to hide losses.
Not making deductions for the unemployment allowance reserve fund in accordance with the guidance in Circular No. 82/2003/TT-BTC dated August 14, 2003 of the Ministry of Finance on the establishment, management, use and accounting of the unemployment allowance reserve fund.
The balance fluctuated significantly over consecutive years without explaining the reason.
Not transferring the difference that had been deducted into production and business expenses in the period but not spent in full to reduce payable expenses.
Not re-evaluating the foreign exchange rate difference for payable expenses of foreign currency origin according to the average interbank exchange rate at the end of the year.
6. Internal payables
Not making reconciliation of internal debts on February 31. The above reconciliation differences have not been processed.
Not offsetting internal receivables and payables with the same object, offsetting the wrong object.
Not opening a detailed tracking book for each payment-related entity or each payable or payable item.
Missing accounting for payable items to superiors.
Paying interest on internal receivables and payables but without a contract or internal interest rate decision as a basis for determination.
Data on the accounting books of the subordinate unit do not match the accounting books of the superior unit.
Accounting is not correct for the nature of the account, not correct for the economic content of the occurrence, incorrect, incomplete or incorrect accounting.
Accounting for increases and decreases in internal payables without sufficient and valid basis such as receipts, bank credit notes or payment vouchers, bank debit notes or these documents do not record all the elements
and lack the signatures of the relevant persons.
7. Other payables
Deducting social insurance, health insurance, and union fees from production and business expenses higher than prescribed.
Selling goods on deferred payment, installment payment, and unrealized revenue are not recorded in account 3387 but are recorded in account 511.
Some other payables still exist from previous years but have not been reconciled and have not been handled.
Some surplus assets awaiting handling are recorded in account 338 but the cause has not been clearly identified or has not been completely handled according to regulations, and the decision of the competent authority on December 31 has not been requested.
After completing basic construction investment, the large difference in exchange rate profit has not been transferred to account 3387 for gradual allocation.
Other payables and payables have no objects or have been outstanding for many years and have not been handled.
Payables are not classified properly and in accordance with their nature.
Accounting without full invoices and valid documents. Unrealized revenue at the end of the accounting period is not determined correctly or has no basis for recording, and is not allocated properly.
Unrealized revenue is not accounted for in the correct period or has been completed but has not been transferred to sales revenue or financial revenue.
Personal loans with loan contracts are still monitored on account 338 but have not been classified to account 311.
There has been no reconciliation with the Social Insurance agency. The difference has not been processed.
8. Long-term debt
Long-term debt has not been determined if it is due to be recorded and transferred to account 315 according to regulations.
Accounting in advance for interest on financial leased fixed assets is not in accordance with regulations.
The data arising in the accounting books does not match the summary table of payable debts.
Long-term debts are not monitored in detail for each contract, each subject, etc.
Long-term debts arising are not signed and approved by the Board of Directors.
Do not revalue long-term debt balances in foreign currencies at the average interbank exchange rate at the time of preparing the financial statements. Long-term debts arising are not signed and approved by the Board of Directors.
9. Long-term debt due
At the end of the accounting year, the unit has not determined the amount of long-term debt due for payment in the next accounting year and transferred it to long-term debt to have a debt repayment plan.
Has not tracked in detail the long-term debt due for payment, the amount paid, the remaining amount of long-term debt due for payment by each creditor, each loan contract.
Has not tracked in detail the long-term debt due for payment in foreign currency for each foreign currency.
Has not re-evaluated the outstanding long-term debt due for payment with foreign currency origin according to the average inter-bank exchange rate at the time of preparing the financial statements.
10. Receiving deposits and bets from customers
Has not tracked in detail each amount of deposit and bet received from each customer.
Short-term and long-term deposits and bets are not classified appropriately.
Has not tracked in off-balance sheet accounts the cases of receiving long-term deposits and bets in kind.
There are no valid and complete documents when receiving and returning deposits and bets to customers.
Data on books, documents, and confirmation letters do not match.
Fines for violations of deposits and bets have not been processed.
Failure to evaluate and account for exchange rate differences in transactions and amounts arising from foreign currencies.
11. Business capital
Capital contributions and sources of capital are not recorded and classified properly.
No summary table of capital sources in the fiscal year.
No detailed monitoring of each source of formation and each capital contributor (organization or individual).
Accounting for business capital sources is not appropriate or complete.
False declaration of business capital sources.
Failure to account for increases and decreases in business capital sources in a timely manner (eg: increase in fixed assets formed from the fund but not recording an increase in business capital sources).
Data on detailed books and general ledgers do not match.
Under-calculating the revenue from capital use to increase business capital from profits due to calculating the average annual capital source without following the average monthly increase or decrease.
Accounting for capital increase or decrease without complete original documents or invalid original documents, decisions on additional capital allocation, capital transfer without approval from competent authorities, increasing or decreasing State capital without a decision to adjust the owner’s equity from competent authorities (General Corporation, Ministry in charge) for enterprises that are converting to joint stock companies.
When issuing shares to record an increase in business capital, the actual value of the shares sold (original price or difference price) is not reflected correctly.
Not reducing the revenue from capital use to set up a reward fund to ensure the deduction level is equal to two months of actual salary according to regulations, although after distributing after-tax profits, these two funds are deducted lower than two months of actual salary of the unit.
12. Funds 414, 415, 431, 451
Funds are formed from sources that are not in accordance with the prescribed regime.
Not accounting for increases and decreases in funds in a timely manner and in accordance with the decision to increase or decrease funds and receipts and disbursements or accounting for increases and decreases in funds without a decision from the Company’s Board of Directors, without valid and legal documents. The decision to allocate funds is unreasonable.
Solution
The work of preparing reports that companies are currently doing is usually based on experience and internal people who are accustomed to it without time to innovate and handle situations that arise to ensure that reports are prepared correctly and errors are corrected quickly. Contact us for a more detailed discussion of the Company’s situation.