The company periodically needs to have an audit report according to regulations, according to management, according to supplier requirements or for some reason must audit, but when auditing discovers too many problems, it takes time to fix, adjust or even redo a large amount of work. Therefore, the auditing company must review errors from the past to connect with the present, especially coordinate with the company’s accountant to review risks by quarter, 6 months, 9 months so that at the end of the year the work will be simple and quickly complete the audited financial report, followed by audit issues and the company should consider before closing the year-end report to limit risks arising and errors in the year-end report.
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 are not reasonable (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 not evaluated 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 Debit and Credit notices of the bank is not timely.
Not opening a detailed tracking book for each bank.
Not reconciling the balance at the end of the period with the bank.
Opening many accounts at many banks makes it difficult to check and control the balance.
There is a phenomenon of bank accounts being frozen.
Differences in accounting books with bank reconciliation records and balance sheets.
Unreasonable reflection of over-balance withdrawals, deposits, loan interest, etc.
The person signing the check is not the authorized person.
Too many money transfer transactions occur on the closing date to take advantage of the delay in sending bank notices.
Wrong recipient or recipient who 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 revaluing 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 that does not match the bank’s subsidiary ledger.
3. Short-term financial investments
Not yet opened a detailed book to track each type of securities.
Not making provisions for short-term securities investment depreciation.
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 incorrect distribution of funds to employees).
At the end of the period, no provision is re-evaluated 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 offsetting the same object or offsetting debts to different objects.
There are no financial regulations on debt collection.
There is no detailed book to track each receivable object in detail.
The same object but tracked on many different accounts.
The credit approval process is not complete and strict: there are no regulations on the maximum debt amount, payment term, etc.
Reconciliation has not been conducted or the debt reconciliation is incomplete at the time of preparing the Financial Statement.
The difference between the reconciliation minutes and the accounting books has not been processed.
Differences 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 debts is not consistent according to invoices or warehouse delivery notes, so the debt reconciliation does not match the numbers.
Recording a reduction in receivables for returned goods, discounts on goods sold 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.
The increase in receivables is not consistent with the increase in revenue. The transfer of documents from the warehouse to the accounting department is slow, so the receivables when selling goods do not have warehouse documents such as delivery notes, etc.
There are large amounts of receivables collected in cash, with no deadline for return, so employees appropriate capital or embezzle capital.
Many receivables are overdue, of unknown origin, and have been in arrears for many years but have not been processed.
At the end of the period, receivables with foreign currency origin have not been re-evaluated.
Debt age classification is not done, there is no effective debt collection and management policy.
Debt write-offs have not been fully collected according to regulations. Bad debts that have been processed are not tracked.
Interest on overdue debt payments is not recorded.
Receivables have not been classified according to new regulations: long-term and short-term classification.
Receivables are not recorded in the correct period, customers have paid but have not been recorded.
Monitor the collection of late interest from agents due to excess debt but have not identified each subject in detail to have recovery measures.
No provision for bad debts has been made or provisions have been made but are under-deducted or over-deducted, exceeding the permitted ratio.
Provision records are not complete according to regulations.
No bad debt settlement council has been established and full records of debts that have been written off for buyers have been collected.
Total provision for bad debts is greater than 20% of total outstanding receivables at the end of the period.
At the end of the period, no re-evaluation has been conducted 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, not determining the cause of the shortage to assign responsibility.
Accounting in account 1388 for some items that are not true in nature.
Not classifying other short-term and long-term receivables according to regulations.
6. Inventory
Not taking inventory of inventory at 31/12 of the fiscal year.
Recording inventory without full valid invoices and documents: not recording warehouse receipts, no delivery and receipt records, no inventory quality assessment records.
Incorrectly determining and recording 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 invoices for purchasing agricultural products according to regulations of the Ministry of Finance).
No warehouse entry procedures for each entry, but the warehouse entry slip is combined for a long period of time.
No regular reconciliation between the warehouse keeper and the accountant.
Differences between actual inventory and accounting books, warehouse cards, differences between detailed books, ledgers, and balance sheets.
No regulations for managing materials, goods, and material consumption standards have been established, or the standards are not appropriate.
Poor management of loss and preservation of inventory. At the end of the year, the unit does not consider and control the shelf life and physical and chemical characteristics that can lead to damage of each type of inventory, and does not consider the storage, preservation, and arrangement conditions in the warehouse to ensure compliance with technical standards.
Not separating the warehouse keeper, HTK accountant, purchasing department, and receiving department.
Not accounting on account 151 when goods arrive but invoices have not arrived.
Not making warehouse receipts and deliveries in a timely manner, accounting for deliveries when not yet recorded as warehouse receipts.
Warehouse receipts and deliveries are not in accordance with regulations: not numbered in order, duplicate numbers, missing signatures, inconsistent indicators, etc.
Not making a detailed list for each warehouse receipt, not writing a separate warehouse receipt 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 warehouse receipt and delivery.
Slow monthly settlement of materials used.
Not making a monthly and quarterly summary of imports – exports – inventories; a summary of the quantity of each type of raw material in inventory 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, types… but still accounting for imported materials.
Wrong accounting: not accounting according to the material delivery note and the material delivery note that has been delivered but not used up, but only accounting for the warehouse delivery according to the difference between the material delivery note being greater than the material return note.
The warehouse delivery data is not correct with the actual delivery data.
The actual delivery and import of goods but not actually delivered, the actual import but recording false data.
The record of destruction of poor quality inventory does not clearly state the technical method used for destruction.
Accounting for inventory kept for others in account 152 without monitoring it on off-balance sheet account 002.
Poor quality raw materials, supplies, and goods according to the record of determining the enterprise value are not allowed to be released from the books.
When preparing the consolidated financial statements, the inventory in accounts 136, 138 at the branch is not adjusted to account 152.
Recovered scrap is not accounted for. Excess raw materials are not accounted for in the warehouse.
Incorrect accounting: Directly imported and exported inventory without going through the warehouse is still entered into accounts 152 and 153.
Not accounting for consignment goods, or accounting for transportation and loading costs in consignment goods, delivering consignment goods 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 appropriate 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 during the period.
Not setting up a provision for inventory price reduction or setting up a provision not based on market price, setting up a provision for goods kept for others that are not owned by the unit. Setting up a provision without sufficient valid documents.
Not yet handling excess or shortage of materials and goods discovered during inventory.
Not yet tracking in detail each type of materials, raw materials, goods, etc.
Not yet comparing, inventorying, confirming with customers about the HTK received for safekeeping.
Accounting for import and export of HTK is not in the correct period.
Unit price, quantity of HTK is negative due to slow circulation of documents, writing warehouse delivery notes before writing warehouse receipt notes.
Internal warehouse delivery is based on fixed price, not production cost.
Warehouse delivery is not accounted for in expenses.
Material delivery for production is only tracked by quantity, not by value.
Finished products and waste products are not tracked separately according to accounting and technical criteria, and waste products have not been handled.
Accounting for temporary import and temporary export without appropriate documents or at provisional price when goods arrive without invoice but are delivered for immediate use, but have not been processed according to actual price when receiving invoice.
Not tracking consignment goods on the inventory account or delivering consignment goods without signing a contract and only writing a regular warehouse delivery note.
Goods for sale have been accepted for payment but are still left on account 157 without recording payment and transferring cost of goods.
Goods and finished products are stagnant, in inventory for a long time with large value and no measures have been taken to handle them.
Not strictly managing the purchasing stage, the purchasing department falsely declares the purchase price (the purchase price is higher than the market price).
Tools and equipment are reported to be damaged but the cause has not been found and handled or they continue to be allocated to expenses.
7. Advances
Not yet reconciled with the subjects.
Not yet tracked in detail each advance subject.
Difference between accounting numbers and advance reconciliation minutes.
Signature on the advance reconciliation minutes is different from the signature on the attendance record, salary payment sheet.
Advances for subjects outside the company.
Not yet established advance regulations, advance management regulations are not strict: late advance refund, too much advance…
Advance payment request does not clearly state the refund period, amount, reason for use, and does not have the signature of the chief accountant.
Advance balance at the end of the year is large. Advances that have been overdue for a long time have not been processed.
Advance debt for employees who have transferred jobs has not been recovered.
Advance use for the wrong purpose.
8. Deductible VAT
Incorrect accounting and declaration of tax rates.
Accounting and declaration are not on time, 3 months past the deadline but still declaring VAT deduction.
VAT invoices are declared with missing or incorrect content.
Declaring tax deduction when there is no invoice or invoice of bankrupt or dissolved units.
Declaring VAT deduction for goods not subject to VAT.
Differences in books and tax declarations, the reason cannot be explained.
Declaring and accounting for deductions for direct VAT invoices or invoices not subject to VAT, invalid or legal invoices.
Declaring tax deductions and invoices paid from other sources.
Goods purchased at a discount 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.
Declaring VAT on imported goods incorrectly.
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. Pledge, deposit, bet
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 party receiving the deposit, 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
Fixed asset management is not strict: fixed asset records are incomplete, fixed assets have not yet transferred ownership 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 minutes, delivery minutes.
– Accounting for increases in fixed assets not in a timely manner according to the handover minutes (accounting in the wrong period).
Accounting for increases in fixed assets without sufficient valid invoices and documents: project settlement, acceptance minutes, handover for use, etc.
Not keeping detailed records of capital sources for fixed asset formation. Not keeping separate records of fixed assets used as collateral or mortgage.
Wrong classification of intangible fixed assets: land use rights value, compensation and site clearance costs, etc. Recording increases in the original value of intangible fixed assets with contents that are not in accordance with regulations such as costs of establishing the Company, costs in the research phase, etc.
Differences in original value, accumulated depreciation between the balance sheet of arising numbers, general ledger, and 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.
Payment vouchers for completed self-made construction volume have not been prepared.
Upgrading fixed assets has been completed but the original price of fixed assets has not been recorded, the useful life has not been re-determined and depreciation must be adjusted to the expenses of the period.
Accounting for increasing the original price of fixed assets with contents that are not in accordance with the prescribed regime: recording in the original price of fixed assets expenses arising when the fixed assets have been put into use such as loan interest expenses that cannot be capitalized; major repair costs of fixed assets that are not upgrades, do not increase capacity or usage time; recording an increase in the original price that is not in accordance with the handover and acceptance minutes…
Not registering the depreciation method with the local tax authority.
The unit applies an inappropriate and inconsistent method of calculating and deducting depreciation, 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 the period’s expenses as prescribed in Decision 206.
Deducting or ceasing depreciation on a full month or quarter basis without following the date the fixed asset is put into use or ceasing depreciation on the date it is discontinued.
The accumulated depreciation amount is not accurate, depreciation in parts is not allocated.
The asset has expired but has not been fully depreciated. The amount not fully depreciated is not accounted for in the period’s expenses.
Depreciation is still deducted for assets that have been fully depreciated but are still in use.
Depreciation is included in the expenses of fixed assets that are not used for production and business activities.
Depreciation is deducted for operating leased assets or not depreciated for financial leased fixed assets. Not tracking off-balance sheet for operating leased fixed assets.
Not fully implementing procedures for liquidating fixed assets: establishing a liquidation council, liquidation decision, no liquidation minutes or minutes without the signature of a competent person…
Not issuing invoices when selling liquidated fixed assets.
Reducing fixed assets when they have not actually been liquidated, dismantled, or have not had a decision from the Board of Directors, Director,…
Not fully and promptly accounting for income from liquidating fixed assets.
Investing in fixed assets before approval from competent authorities or not included in the approved investment plan.
Investing in fixed assets for the wrong source and purpose: Fixed assets serving public interests are invested.
Depreciating assets invested in other sources from production and business expenses.
The time of depreciation is not according to the time of recording fixed assets.
Implementing accelerated depreciation but not registering 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 tracked off-balance sheet assets, and 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 value without recording the depreciated value.
Fixed assets under financial lease 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 handover…
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 into one asset or a group of assets.
Fixed assets invested with state budget capital, used by employees 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.
13. Financial leased fixed assets
Not keeping a financial leased fixed asset tracking book
Missing a lease contract.
Misclassifying financial leased fixed assets and operating leased fixed assets.
Original cost 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 cost of financial leased fixed assets.
14. 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.
15. 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 which basic construction investment items at the end of the period belong to 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.
Set 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 a report.
Not yet opened a detailed tracking book for each type of investment securities.
Not yet set up provisions for securities that have decreased in value at the end of the fiscal year. Setting up 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. Career expenses
The figures in the accounting books do not match the figures on the balance sheet.
Career expenses are not recorded in account 161 but are recorded as a reduction in the career funding source.
Recording a reduction in career expenses without a settlement acceptance report from the competent authority.
At the end of the accounting year, career expenses are not transferred to the previous year’s career expenses.
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 not reasonable and consistent. 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 persons. The loan agreement does not specify the repayment period.
Differences between debt acknowledgment contracts and receipts of money, goods, assets or interest payment and principal payment transactions with payment and disbursement documents.
Unreasonable loan record keeping.
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 amount of 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 them 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 a reduction in loan amounts that are cleared.
Accounting for loan interest of external units or officers and employees exceeding 1.2 times the bank interest rate at the time of borrowing. Not accounting or not accounting correctly for long-term loans if due to be paid to long-term debt due to be paid according to regulations on December 31 according to the repayment plan stated in the long-term loan contract.
No loan contracts signed with employees and no reconciliation of employee loans.
Using loans for purposes other than those 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.
Confusion between capitalized and non-capitalized borrowing costs.
Not re-evaluating short-term and long-term loan balances in foreign currencies at the average interbank 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. There is a difference between the reconciliation number and the book number because unpaid interest has not been recorded in the loan principal.
Not classifying loans by loan age.
Long-term debts are frozen but there are not enough documents as prescribed. For overdue debts, the Company has no plan to repay or request an additional extension.
Not keeping detailed records of original currency for foreign currency loans or repaying loans in foreign currency.
Data on financial statements, general ledger and detailed ledger do not match.
Incorrect presentation on financial statements. Failure to properly implement the principles of authorization and approval.
Not keeping detailed records of each tax, fee and charge payable and paid.
Managing and accounting for output VAT in violation of regulations: not writing invoices when selling goods, applying incorrect output VAT rates, calculating incorrect taxable prices.
Accounting and declaring VAT in incomplete or inappropriate manner. Accounting for VAT deductions for invalid invoices (missing tax codes, signatures of buyers, etc.) or direct increase invoices, invoices paid from KPCCĐ sources, welfare funds, payments not serving production, etc. Accounting for reduction of VAT payable and increasing profits for VAT exempted or reduced amounts.
Inappropriate management and accounting of resource tax: not accounting for account 627 but accounting for account 642, accounting for resource tax at provisional price when there is no announcement of resource tax calculation price from the local Tax Department.
Inappropriate basis for calculating resource tax: calculating resource tax on price including transportation, loading and unloading, warehousing costs; not calculating resource tax exploited in the period but not yet sold or consumed; calculating resource tax on resource volume when not yet excluding all miscellaneous goods.
The balance on account 3331 (VAT payable) on the financial statements has a negative balance due to accounting for input VAT deduction exceeding the output tax amount.
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 invoice issuance date on the VAT declaration.
Incorrectly accounting for VAT in cases of returned goods, sales discounts, calculating output VAT for promotional goods, advertising, trade fairs and exhibitions.
Accounting for output VAT deductions 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 lost or misplaced VAT invoices, the unit does not handle them in accordance with regulations and accounts against the principles.
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 on goods that are not actually subject to import tax such as transfer goods, import into export processing zones, transit goods for humanitarian aid, etc.
Export tax is calculated on the price excluding transportation and insurance costs, etc.
Paying import tax on behalf of the entrusted unit but not yet issuing an invoice.
Not calculating output VAT on goods and services subject to VAT under the deduction method in the case of internal consumption (paying salaries, bonuses for employees) or due to the exchange of goods.
Confusing goods and services not subject to VAT with goods and services 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 without excluding social insurance and health insurance payments from employees’ salaries.
Not determining preferential conditions for tax rates and tax exemption years as prescribed in Circular 128 and Decree 164.
Not accounting for additional tax payable in the year. Submitting tax settlement reports to tax authorities later than prescribed.
Not accounting for land rent but there is no official document from the competent authority on land rent exemption or reduction. Not accounting for land rent
The land lease contract was signed with the local Department of Natural Resources and Environment.
Determining the wrong taxable income for corporate income tax due to accounting for reasonable expenses for tax calculation purposes that are not in accordance with regulations, recording other revenues and incomes incorrectly; calculating the cost of goods sold in the wrong period or incorrectly.
Not separating taxable income from non-taxable income.
Not synthesizing tax finalization.
The unit did not temporarily pay corporate income tax quarterly with the amount that the unit declared.
The unit carried out loss transfer to calculate corporate income tax payable for this year but did not register for loss transfer with the tax authority. Being eligible for tax exemption and reduction but not yet preparing a file to request tax exemption and reduction.
Not yet accounting for fines and arrears from the tax authority into other expenses.
Tax arrears that have not been processed for a long time.
Not yet determining and accounting for corporate income tax payable in the following year after deducting the previous year’s loss.
Land use tax and business license tax are not recorded in account 333 but are recorded in production and business expenses during 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 suspended expenses 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 foreign exchange differences for payable expenses with 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 transaction, 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.
Pre-accounting 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 full 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 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
Not accounting for increases and decreases in funds in a timely and appropriate manner 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.
Funds are formed from sources that are not in accordance with the prescribed regime.
Solution
The work of preparing reports that companies are currently doing is usually based on experience and internal people following the habit without coordinating with auditing companies to review the accounting work so that accountants can make reasonable adjustments so that the work is quickly completed, especially at the end of the year. Contact us for a more detailed discussion for the Company’s situation.