Recommendations for Accounting Software Quality

The impact of the above factors on the financial reporting quality of commercial banks in Vietnam. In terms of practice, the study has made specific contributions including: the study helps to show the current status of financial reporting quality of commercial banks in Vietnam; the research results provide empirical evidence on the factors affecting the financial reporting quality of commercial banks in Vietnam; there is a small contribution to the improvement and enhancement of financial reporting quality of commercial banks in Vietnam through making proposals and recommendations to banks and related parties.

5.2. Recommendations

From the research results, the author will propose recommendations for factors to improve and enhance the financial reporting quality of commercial banks in Vietnam.

5.2.1. Recommendations for Staff Training

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- Banks always support training and education on accounting and tax knowledge for employees. There must be a deep awareness of the importance of training and education of employees for the development of key strategies of commercial banks. In accounting and tax work, banks need to have policies to support and encourage their employees to regularly update new regulations and policies on accounting and tax. There should be a mechanism to support tuition fees and promotion for employees participating in training to contribute to improving the quality of financial statements for banks.

- Banks have specific plans to conduct training to improve accounting and tax knowledge for accounting staff and management. Banks should pay due attention to training to have good quality human resources to meet the growing demands of economic development. Banks cooperate with universities and prestigious training centers to make specific plans on time, location and training content as well as to provide additional training on accounting and tax for all accounting staff, including managers of commercial banks.

- Banks need to promptly train and improve knowledge for employees when there are updates and changes in the information system. Banks must have close connections between departments, information technology staff and

Staff need to support each other when the IT system has changes. Banks need to organize training before these changes and updates, so that staff can gradually get used to the changes, can promptly detect errors and mistakes of this change and fix them.

5.2.2. Recommendations for Bank Management

- The bank's management board has a certain understanding of the field of financial reporting of accounting. Bank managers must have a basic knowledge of bank accounting, and be able to read and grasp the information on the financial statements.

- Bank management needs to pay attention to accounting work. Managers should fulfill their responsibilities in monitoring and following up the recording and preparation of financial statements. Managers must regularly check the complete recording and data entry of the accounting department, which will help reduce errors. There must be regular reconciliation between departments and reporting.

- The bank's management relies on the information in the financial statements to make economic decisions of the bank. The management needs to pay more attention to the content shown in the financial statements, the information in the financial statements is used for the management work at the bank, and is the basis for making decisions. The use of financial statement information by managers will increase information quality and create reliability for other users.

- The bank's management board intervenes in the accounting department's recording and preparation of financial statements. It is necessary to establish and perform well internal control activities in the bank to check and supervise the recording and preparation of financial statements. In addition, external entities such as independent auditors, State auditors, and the Stock Exchange need to perform well their roles in checking and supervising the financial statements of banks. In addition, there should be an incentive regime to create conditions for managers to participate in the ownership and capital of commercial banks. Banks need to have incentives on stock purchase rights and stock rewards for managers. The

Banks need to develop criteria to evaluate the quality of managers based on many different aspects to have a correct and comprehensive assessment of managers' capacity, thereby having a corresponding reward system, minimizing the motivation that negatively affects the recording, accounting and preparation of financial statements of managers.

5.2.3. Recommendations for Accounting Software Quality

- PMKT ensures compliance with accounting standards and regulations. This will help increase the suitability of financial statements, thereby improving the quality of financial statements. PMKT should have quality control from the Ministry of Finance to review and ensure that the accounting methods in the software comply with accounting regulations in the banking industry. Only certified PMKT are allowed to circulate in the market.

- PMKT stores enough information to allow tracking of visitors. PMKT must perform user management secured by password, must fully store user access logs to be able to properly manage user access.

- All accounting book edits are recorded on the PMKT. Accordingly, the PMKT must track the operations of each user according to each section in the PMKT, and must assign authority to employees according to each level when performing commands: add, edit, delete, print, etc. These operations must be fully recorded in the access log of each user.

- Software suitable for the business characteristics of commercial banks. The banking industry has specific characteristics such as: large scale of operation, many branches, complex accounting, .... so it is necessary to choose software to suit the business characteristics of the industry. Before choosing software, banks need to find out the reputation of the supplier. Banks should increase investment in information technology to facilitate the development of the IT system, which will help perfect the process of preparing financial statements starting from collecting and processing input data to outputting information on the financial statements. Currently, some software not only prepares financial statements but can also output detailed reports, reports

management, so that banks can use information from the software in decision making.

5.2.4. Recommendations for Accounting Staff Competency

- The auditor must understand and grasp the accounting standards and regimes currently used by the bank. In the process of selecting auditors, it is necessary to select competent candidates who have a good grasp of the legal regulations and accounting practice guidelines of the banking industry so that they can accurately account for, prepare and present information on the financial statements in accordance with regulations.

- The accountant must have knowledge of the bank's business operations and financial situation. When recruiting, banks need to select candidates who have knowledge of the bank's business operations, can read and understand financial information on financial statements and grasp the bank's financial situation.

- Accounting staff must be able to understand and apply accounting regulations to the actual operations of the bank. The banking industry has different operations such as: lending, deposits, foreign currency, guarantees... Accounting staff must have a good understanding of the methods and working processes of these operations in order to understand how to account for these operations. At the same time, employees must have a good understanding of accounting regulations to properly perform the accounting operations of the bank and understand the information displayed on the accounting software.

- The accountant has the skills to prepare and present information on the financial statements in accordance with regulations. A professional accountant is required to have a basic level of expertise and high professionalism. The professional capacity of the accountant will be demonstrated through the ability to prepare and present accounting reports in accordance with regulations, the ability to analyze accounting reports... There should be a mechanism to support tuition fees and promotion for employees who participate in studying and achieving international professional certificates to improve their qualifications and skills in accounting, finance, management such as ACCA, CPA, CMA,... which will contribute to improving the quality of financial statements for banks.

- NVKT regularly updates changes in accounting standards, regimes and related legal regulations. When there are additional changes to the regulations

accounting regulations. Banks need to facilitate accounting staff to participate in training programs, and employees must also update their professional knowledge themselves.

5.2.5. Recommendations for Tax Pressure

- Tax authorities should not put pressure on the processing and presentation of information on the financial statements of commercial banks. It is necessary to issue specific regulations on tax officers not to interfere with accounting activities at banks. Tax officers often require calculation and presentation of financial statements according to tax regulations without considering regulations and accounting standards. Therefore, the Ministry of Finance needs to make appropriate amendments and adjustments through guidance documents to solve this problem. At the same time, the Ministry of Finance must conduct training for tax officers so that they can have a more thorough understanding of regulations and accounting standards of the banking industry.

- Tax-related items presented in the bank's financial statements comply with current tax policies. However, some tax regulations are different from accounting regulations, causing obstacles to accounting work at banks. Therefore, tax authorities need to establish appropriate tax policies, taking Vietnamese accounting standards and regimes as the basis. Bank auditors need to be trained and updated on tax regulations regularly to grasp current regulations because tax policies change frequently.

- It is necessary to prevent the act of editing information on financial statements to minimize the amount of tax payable by banks. Commercial banks need to consider whether reducing the amount of tax payable is consistent with their development strategy goals. Adjusting financial statements to reduce the amount of tax payable will bring immediate benefits to banks but will reduce the quality of financial statements, and this will greatly affect the business efficiency and reputation of the bank. Tax departments need to focus on inspection and examination to avoid the phenomenon of tax reduction declaration, causing loss of state budget.

5.3. Limitations of the topic and future research directions

5.3.1. Limitations of the topic

During the process of writing the thesis, the author has also tried his best to carry out the topic in the best way. However, the research still has many limitations, which are given as follows:

- Although the research sample has met the theoretical minimum sample size requirements, ensured statistical reliability, and performed multivariate regression tests and analysis to provide answers to the research questions initially posed. However, according to the author's assessment, the sample size is still very small compared to the number of people interested in and in need of using financial statements information of commercial banks. Therefore, the research sample may not fully reflect the actual nature of the overall research, specifically, financial statement quality as well as the factors affecting it have not been objectively and comprehensively assessed by a large number of related people.

- The linear regression model of the study has an adjusted R2 coefficient of 0.519, showing that the independent variables included in the study explain up to 51.9% of the variation in the dependent variable. The remaining unexplained part (48.1%) may be errors arising during the survey process or the qualitative research has not yet discovered all the factors of the model.

5.3.2. Future research directions

In order to help the research on the topic "Factors affecting the quality of information on financial statements of commercial banks in Vietnam" be more complete, the author would like to propose the next research direction of the topic as follows:

Firstly, conduct a survey with a larger number of respondents to get research results that are closer to reality and more representative of the whole.

Second, further studies need to explore and include other factors that affect the financial statements to improve the level of explanation of the factors for the variation of the dependent variable.

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