TABLE OF CONTENTS

Acknowledgements

Table of contents

List of abbreviations

List of tables

Executive summary

Introduction

1.The necessaries of the topic. 1

2.Research purposes 2

3. Research objectives and scope 2

4. Research methodology. 2

5. Research Structure 3

Chapter 1: The theoretical framework of performance audit 4

1.1.The basic concepts of performance audit 4

1.1.1. Introduction of performance audit 4

1.1.2. Definition of performance audit 4

1.1.3. Features of performance audit 5

1.1.4. Meaning of economy, effectiveness and efficiency in performance audit 6

1.1.5. Differences between Performance Audit and Financial Audit 8

1.1.6. Influence of public management to performance auditing 9

1.2. Performance audit criteria 13

1.2.1. Basic concepts of performance audit criteria 13

1.2.2. Role of performance audit criteria 13

1.2.3. Requirements of performance audit criteria 13

1.2.4. Types of performance audit criteria 15

1.3.Process of performance audit 16

1.3.1. Preparation of performance audit 16

1.3.2. Implementation of performance audit 22

1.3.3. Preparation of performance audit report 26

1.3.4. Review of the implementation of performance audit recommendations 28

1.4.Performance audit in other countries 29

1.4.1. The system-oriented approach of effectiveness auditing. 30

1.4.2. The system-model and government undertakings. 30

1.4.3. Effectiveness auditing – some conclusions. 33

Chapter 2: Real situation of Collecting and spending toll fee audit 35

2.1. An overview of performance audit and objectives of the State Audit of Vietnam in implementation of the performance audit 35

2.1.1. Objectives of State Audit of Vietnam in implementation of performance audit 35

2.1.2. Real situation of performance audit of State Audit of Vietnam 36

2.3. Requirements and objectives of Collecting and spending toll fee audit 36

2.4. Real situation of Collecting and spending toll fee audit 36

2.4.1. Preparation of collecting and spending toll fee audit 36

2.4.2. Implementation of collecting and spending toll fee audit 39

2.4.3. Preparation of collecting and spending toll fee audit report 48

2.5. Assessing the real situation of Collecting and spending toll fee audit 50

2.5.1. Collecting and spending toll fee audit findings 50

2.5.2. Shortcomings of Collecting and spending toll fee audit 51

2.5.3. Causes of shortcomings 52

Chapter 3: Recommendations and conclusion 53

3.2. Requirements of enhancing effectiveness of Collecting and spending toll fee 53

3.2.1. Independence 53

3.2.2. Ethical behavior 53

3.2.3. Audit or competence 53

3.3. Research findings 54

3.3.1. Enhancing effectiveness of performance audit methods 54

3.3.2. Enhancing effectiveness of auditors organization and management 55

3.3.3. Enhancing audit quality control and assessment 56

3.3.4. Quality improvement of selecting and training auditors 57

3.4. Recommendations 58

3.4.1. Recommendations to audited bodies 58

3.4.2. Recommendations to the State audit of Vietnam 58

3.4.3. Recommendations to agencies of government 59

Conclusion 60

References 62

In Vietnamese 62

In English 62

List of abbreviations

SAV State Audit of Vietnam

INTOSAI International Organization of Supreme Audit Institutions

ASOSAI Asian Organization of Supreme Audit Institutions

CISA Certificated Information System Auditor

CMA Certificated Management Accountant

CPA Certificated Public Accountant

F/S Financial Statements

List of tables

Table 1.1: Audit Methodology Analysis Table

Table 2.1: Typical Risks

Table 2.2: Worked audit summary form

Table 2.3: Audit questions on performance targets

List of figures

Figure 1.1: Meaning of economy, effectiveness and efficiency in performance audit

Table 1.2: Audited body’s activities

Figure 1.3: Typical risk factors to consider in government ministries

Figure 1.4: Main categories of risk that affect government ministries:

Figure 1.5: Examples of Audit Methodologies for Fieldwork

Figure 1.6: The system-model type a

Figure 1.7: The system-model type b

Figure 1.8: The system-model type c

Figure 1.9: The complete system model

Executive summary

Auditing activities become increasingly important in the market- based economy. Performance audit is a type of auditing, which occurs later than financial audit. Performance audit emerges because of increasing demand of efficient usages of source. Performance audit is implemented primarily by State Audit and Internal audit.

Unlike tradition audit (financial audit), performance audit is a new audit type. Its objectives and contents are multiform. Performance audit is a complicated audit field and being developed.

Firstly, this thesis mentions about theoretical framework of performance audit, procedures of it and a brief description of performance audit process. Secondly, the thesis analyzes Collecting and spending toll fee audit process by the State Audit of Vietnam. Based on that, recommendations for enhancing effectiveness of performance audit through Collecting and spending toll fee audit are provided.

Finally, the thesis draws a conclusion that: although there are some specific differences in legal form, a standard and popular process of performance audit often includes four steps: preparation, implementation, preparation of audit report and reviewing implementation of performance audit recommendations. In addition, from the State Audit of Vietnam’s experiences in recent “Collecting and spending toll fee” audit affair, the thesis has provided recommendations for enhancing effectiveness of performance audit.

In the course of this research, performance audit activities have been investigated thoroughly and then some recommendations have been given in hoping that performance audit activities will be better in the near futures. Enhancing effectiveness of performance audit is a long and continuous process to both of the State Audit of Vietnam and auditors