Factors affecting the decision to retain customers at independent auditing companies in Vietnam - 31

Question 2: According to VSA 200, RRKT is the risk that the auditor makes an inappropriate YKKT when the audited financial statements still contain errors. VSA 240 has guided the factors leading to fraud, VSA 315 has guided the situations that show errors. Accordingly, the YKKT of the previous year is not YKCNTP, the YKKT of the previous year has a problem section that needs to be emphasized due to continuous violations, customer growth, high receivables & inventory/assets, profit adjustment is a factor to measure RRKT affecting the customer revenue. If the customer receives the YKKT of the previous year that is not YKCNTP, the YKKT of the previous year has a problem section that needs to be emphasized due to continuous violations, customer growth, receivables & inventory/assets, the higher the profit adjustment, the higher the RRKT. The higher the RRKT will have a negative impact on the customer revenue decision.

Question 3: According to VSA 315, business risks arise from conditions that adversely affect the company's objectives. VSQC1 and VSA 220 both require accounting firms to assess risks before making old customer research. In practice, accounting firms often consider and evaluate factors related to customer business risks to make appropriate customer research decisions. Financial risk is a factor related to customer business risks that affects customer research. If a customer has high financial risk, it will negatively affect customer research. In particular, the Z Score coefficient is an indicator to measure this factor.

In addition to financial risk, customers frequently changing accounting policies is a factor that affects customer revenue. Customers frequently changing accounting policies is a sign of customer business risk. Customers who frequently change accounting policies in the past often have disagreements and have bad relationships with accountants.

predecessor. With limited resources, when CTKTs have the

Customers who often change their business models are better, and companies will not maintain these companies. Therefore, customers who often change their business models are one of the factors that companies need to consider in order to have suitable customer service. If a company often changes its business models, it will have a negative impact on customer service. Customers who often change their business models can be measured by the number of times the business models have been changed since listing/the number of years the company has been listed.

Question 4: The integrity of the client's management is a factor of the audit firm's business risk that affects the audit. The integrity of the client's management is a factor that affects the audit. In fact, integrity is the main issue that needs to be considered first for audit and audit. If auditing for a client with no integrity, the audit firm may face risks such as lawsuits, financial losses, and reputational damage.

The audit performance capability of the audit firm is a factor of the audit firm's business risk that affects the decision of the audit firm. If the audit firm does not have enough capability, it will lead to some content being cut, the staff being stressed, pressured and the contract may not be completed. Therefore, the audit firms need to consider the audit firm's performance capability to make appropriate decisions.

Question 5: If the customer is being audited or disputed; the customer is having investigations related to ownership; there are signs of abuse of power or power concentrated in a few people, there are changes in accounting and management personnel, then the risk of integrity of management is high and will negatively affect DTKH.

Question 6: Auditing capacity of the auditing company is measured by the number of auditors approved to audit the public interest entities of the auditing company in the year/number of audit clients of the auditing company in the year

first. If the number of technicians is large, the performance of the technician will be improved.

ensure. The ability of the CTKT to perform will affect the DTKH in the same direction.

Question 7: Factors related to the characteristics of the client's Board of Directors such as independence, financial expertise, experience, size and frequency of meetings of the Board of Directors and Audit Committee, the client has an internal audit department. Among these factors, the client's company having an internal audit department is a factor that affects DTKH.

Question 8: The level of specialization of an accounting firm is measured through market share. Market share is calculated as the total number of clients of an accounting firm in an industry divided by the total number of clients of all accounting firms in that particular industry. The Big Four accounting firms with high levels of specialization are more likely to reduce high-risk clients to avoid litigation risk and protect their reputation than other accounting firms.

other.

CPA10

Question 1: When considering the customer's DTKH, the accounting firms need to consider the professional capacity & ability, consider the integrity of the client and other risk factors that affect the customer's DTKH. The customer's RRKH, RRKH of the accounting firm, the cost, the characteristics of the client's management board, are factors affecting the customer's DTKH that the accounting firms need to consider in this process.

Risk assessment is a factor that needs to be considered in the customer's audit because if the auditor gives an inappropriate opinion, the auditor may be sued or have to compensate for damages to the customer. Therefore, risk assessment affects customer's audit. Customer's business risk is also a factor that needs to be considered in the customer's audit. This is because the customer's business risk affects the risk of SSTY on the financial statements. If the auditor does not identify the business risk, it will not be

Without the right audit strategy, the audit firm may face many risks.

In addition, if the client encounters business difficulties (may go bankrupt, suffer large losses), the audit firm may face lawsuits even though the audit firm has fully complied with the profession. The audit firm's business risk is a factor to consider when making a client assessment. This requirement has been included in the standards. VSA 220 requires auditors to pay attention to the integrity of the management when making a client assessment. Audit fees are a factor to consider when making a client assessment because if the fee is not appropriate, it will lead to low audit quality and many other consequences. Therefore, the fee affects the client assessment. The characteristics of a good client's management board can reduce the risk of having SSTY on the financial statements and thus also affect the client assessment decision.

Question 2: According to VSA 200, RRKT is the risk that the auditor makes an inappropriate YKKT when the audited financial statements still contain errors. VSA 240 has guided the factors leading to fraud, VSA 315 has guided the situations that show errors. Accordingly, the YKKT of the previous year is not YKCNTP, the YKKT of the previous year has a section that needs to be emphasized due to continuous violations, high customer growth, high receivables & inventory/assets, profit adjustment is a factor to measure RRKT affecting the customer's revenue. If the customer receives the YKKT of the previous year that is not YKCNTP, the YKKT of the previous year has a section that needs to be emphasized due to the contract, customer growth, receivables & inventory/assets, the higher the profit adjustment, the higher the RRKT. The higher the RRKT will have a negative impact on the customer's revenue decision.

Question 3: VSQC1 and VSA 220 both require that accounting firms assess risks before making a decision. In practice, accounting firms often consider and assess factors related to customer business risks to make a decision.

DTKH. Financial risk is an element of the customer's business risk and

affect customer retention. If a customer has high financial risk, it will negatively affect customer retention. In which, Z Score is an indicator to measure this factor.

In addition to financial risk, customers frequently changing accounting software is a factor that affects customer revenue. Customers frequently changing accounting software is a sign of customer business risk. Customers who frequently change accounting software in the past often have disagreements with their predecessors. With limited resources, when accounting firms get better customers, they often do not maintain these companies. Therefore, customers frequently changing accounting software is a factor that accounting firms need to consider to make appropriate customer revenue. Customers frequently changing accounting software can be measured by the number of times the accounting software has been changed since listing/the number of years the company has been listed. If customers frequently change accounting software, it will negatively affect customer revenue decisions.

Question 4: The integrity of the auditor is a factor of the audit firm's business risk that affects the audit. The integrity of the client's auditor is an important factor that affects the audit. In fact, integrity is the main issue that needs to be considered first for audit and audit. If the audit firm audits a client who is not honest, it may face risks such as lawsuits, financial losses, and loss of reputation.

The audit performance capability of the audit firm is a factor of the audit firm's business risk that affects the decision of the audit firm. If the audit firm does not have enough capability, it will lead to some content being cut, the staff being stressed, pressured and the contract may not be completed. Therefore, the audit firm needs to consider the audit firm's performance capability.

to make appropriate decisions.

Question 5: If the customer is in litigation, dispute; inspection by the agency, investigation related to the customer's management or field of operation; there are signs of abuse of power or power concentrated in a few people, there are changes in accounting and management personnel during the year, then the risk of integrity of management is high and will negatively affect DTKH.

Question 6: The auditing capacity of the auditing company is measured by the number of auditors approved to audit the public interest entities of the auditing company in the year/the number of audit clients of the auditing company in the previous year. If the number of auditors is large, the auditing company's capacity will be guaranteed. The auditing company's performance capacity will positively affect the audit fee.

Question 7: Factors related to the characteristics of the client's Board of Directors such as independence, financial expertise, experience, size and frequency of meetings of the Board of Directors and Audit Committee, the client has an internal audit department. Among these factors, the client's company having an internal audit department is a factor that affects DTKH.

Question 8: The level of specialization of an accounting firm is measured through market share. Market share is calculated as the total number of clients of an accounting firm in an industry divided by the total number of clients of all accounting firms in that particular industry. Accounting firms with a high level of specialization tend to reduce high-risk clients to avoid litigation risk and

protect their reputation more than other CTKTs.

CPA11

Question 1: Customer's risk, business risk, business risk of the investment company, fees, customer's management board characteristics, and the level of expertise of the partners are factors to consider when deciding on the customer's investment.

Question 2: What are the signs of high RRKT affecting

DTKH as customer received YKKT last year is not

YKCNTP, YKKT last year had continuous growth, unusual customer growth, high ratio of receivables & inventory/assets, signs of profit adjustment.

Question 3: The customer's financial risk is an important factor in assessing business risk. This risk is assessed through financial ratios or Z-score coefficients. In addition to the financial risk factor, the customer's frequent change of accounting policies is also a possible sign of business risk that needs to be considered in this process.

Question 4: Regarding the business risk of the audit firm, the integrity of the management, and the ability of the audit firm to perform are important factors to consider when deciding. In the company, the challenge of conducting audits, information about the integrity of the management are issues to consider, and have a major impact on the decision making of the audit firm.

Question 5: Signs related to the integrity of the customer's NQL that need to be considered: the customer is in litigation, inspection by the agency; related investigations; signs of abuse of power or power concentrated in a few people; changes in accounting department personnel; NQL (during the year.

Question 6: The number of auditors audited for public interest companies of the auditing firm is one of the indicators showing the performance of the auditing firm.

Question 7: Whether a customer has an internal audit department is a factor in the customer's management characteristics that affects customer revenue.

Question 8: The level of specialization of the accounting firm is measured through market share. Accounting firms with high levels of specialization often reduce high-risk clients to avoid litigation risks and protect

their reputation is better than other CTKTs.

Question 1: Making a decision on DTKH is based on the company's policy. There are many issues to consider in this stage, in which the risk of the customer, the business risk of the accounting firm, the cost, the characteristics of the customer's management board, the level of expertise of the partner are the main factors that need to be considered, affecting DTKH.

Question 2: Issues related to RRKT that need to be considered when planning for a project include:

+ Client's industry (does it operate in industries that are often at high risk of corruption);

+ Does control over financial reporting provide reasonable assurance about the reliability of financial reporting (factors that reduce the effectiveness of control over financial reporting such as serious weaknesses or deficiencies that are not remedied promptly (i.e., persist for more than 12 months); significant adverse changes in the client's environment including significant reductions in resources, controls or increased presence of control deficiencies; the entity does not have sufficient internal resources (or external resources with appropriate expertise) to assess the entity's control over financial reporting).

+ The level of expertise of the company's accounting department and its diligence in identifying and applying appropriate accounting guidance and disclosures affect the likelihood of error or fraud (Factors affecting the assessment of risks related to the client's accounting function: Lack of knowledge, capacity and expertise necessary to address business expansion, financial statement development due to insufficient numbers, experience or

Changes in key accounting personnel; Public criticism related to