Audit of statutory financial statements

Client responsibilities:

Clients are responsible for preparing financial statements truly, fairly and providing ledgers, vouchers completely, accurately as well as other documents related to the accounting period in compliance with accounting standards and current accounting regime in Viet Nam.

Auditor responsibilities:

Auditors are responsible for giving independent opinion about financial statements based on the audited results and report back to client's management and Board of Directors.

Basis of opinion:

Unistars has conducted our assurance service in compliance with Vietnamese  Auditing Standards and International Auditing Standards. Those standards stipulate that auditing planning and implementation have been conducted in such a way that no material errors will be contained in financial statement. Unistars will inspect and apply nessceary tests, verify evidence in financial statement; assess the compliance of current accounting standard and regimes, accounting principles and methods applied, the significant estimates and judgements of management  as well as the overall presentation of the financial statement.

Woking Plan:

• Surveying accounting system and internal control system.

• Evaluating the effectiveness of internal control system.

• Assessing the appropriateness of the accounting system in terms of:

                   Accounting document system,

                   Account system being used,

                   Bookkeeping system and recording method,

                   Financial statement and managerial report system,

                   Organization of Accounting activities,

• Participate in witness the physical counts of cash, fixed asset, inventories at the balance sheet date.

• Implement procedures to confirm the balance of receivables, payables, short-term, long-term loans, contribution capitals.

• Check carefully the items in financial statements such as cash, bank deposits, inventory, fixed asset, liabilities and owner's eqity, revenue, expenses, etc.

• Summarize the check results, review and prepare draft audit report.

• Review and consider the materiality of the transactions occuring after the date of closing.

• Discuss with clients about the contents of the audit report and the official release.

During the audit process, we shall not base on insignificant errors discovered in the accounting records and financial statements. These errors will be given to each management level in charge. However, we will report to clients about all material errors of accounting system and internal control system that we discovered during the audit process.

Method of implementation

UNITARS provides financial statement assurance service for clients as follows:

• An audit job is performed once or twice a year (interim and year-end audit) as agreed with clients' company and disclosed in the contracts.

• At the end of the interim audit, we will release a management letter. This management letter addresses the key issues realated to the accounting system and internal control system (if any) along with the recommendations to improve the client's management.

• At the end of year-end audit, we will release  the audit report.

On-demand documentation

• Provide the documents, written information on financial policies, accounting, tax directly related to the business lines such as: Vietnamese Standards on Auditing and Accounting, Decision of management, Use and depreciation of fixed asset, Law and Decrees, Circulars involving in CIT, VAT, export & import tax, special consumption tax, personal income tax...

• Provide changes, amendment and supplements to  the Vietnamese accounting regime

• Documentations will monthly be provided to clients:

                     Provide a PHOTOCOPY of tax policies and monthly accounting regime.