- The Factors Affect the Quality of Financial Statements Audit in Vietnam Businesses. - The development of a market economy, especially the financial markets is asking for transparency and truthfulness of the financial information with high quality. - The information in the financial statements will impact directly and indirectly to the rights and decisions of investors. - This study focuses on analyzing the factors affecting the quality of financial statements audit in enterprises. - Moreover, linear structural modeling method (Structural Equation Modeling SEM) is used to test the reliability and value of discrimination, convergence, unitary of the concept and scale of research. - The study results showed that occupational qualification is an important factor affecting the audit quality in the establishment of the business financial statements and legal environment factors, factors belonging to business, factor of independence, factors of quality control system of audit firm.. - In Vietnam, there was many researches relating to the financial statement audit such as doctoral thesis of Ngo Duc Long (2002), Solutions to improve quality of independent audit in Vietnam. - Doan Thi Ngoc Trai (2003), Improving organization of financial statements audit in Vietnam enterprises. - doctoral thesis of Pham Tien Hung (2009), Improving the financial statements audit in construction enterprises of independent auditing organization;. - and recently as research of Doan Thanh Nga (2011), with topic “Evaluating the audit highlights and risks to enhance the activity quality in Vietnam independent audit enterprises”. - Nguyen Thi My (2013) with the doctoral thesis "Improving the audit of financial statements of listed firms on Vietnam stock market”. - Doctoral thesis of Ngo Duc Long (2002) is “Solutions to improve quality of independent audit in Vietnam". - One of the important contributions of this thesis is evaluating the condition of audit quality management in Vietnam and the lessons from studying the experience of other countries, in combination with the problems of audit quality control and audit quality management, which are the important and persuasive basis for making solutions to improve the quality of independent audit in Vietnam such as enhancing the level of auditors, improving the quality of the audit program.. - Research student Doan Thi Ngoc Trai (2003) with the subject Improving organization of financial statements audit in Vietnam enterprises. - This subject is both urgent in the early 1920s and significant of development in business auditing financial statements reasoning in specific conditions of Vietnam. - The author analysised the current upcoming problems of the financial statement audit activity in Vietnam, and proposed the orientation and solutions for perfecting the organization of apparatus and organization of business financial statement audit.. - The doctoral thesis of Pham Tien Hung (2009) at Acedamy of Finance, Hanoi studied Improving the financial statements audit in construction enterprises of independent auditing organization. - In his thesis, the author showed the solutions for amendment and perfection of the financial statements audit in construction enterprises.. - Doan Thanh Nga (2011), successed in studying the project Research on evaluating the audit highlights and risks to enhance the activity quality in Vietnam independent audit enterprises Evaluating the highlights and risks of the audit is a vital step which deeply affects the audit quality. - Ta Thu Trang (2012) with the article Fraud in business and influence on the financial statements presented the nature and form of fraud in enterprises and negative impact of enterprise fraud on the financial statements according to two trends: Adjustment of financial statements following the direction of "be beautiful". - However, in this article she just focused on listing the forms of fraud expression such as establishment of fraud financial statement and embezzlement of assets and basing on fraud behavior falsifies information on financial statements.. - In the article Improving the classification fraudul acts in the audit standards No. - Overall, in the studies of these authors, factors affecting the quality of the financial statements audit are not the main object and targets of the researches, but only a part, or used for other related important critical analysis, so the factors affecting the system neither are fully proviced nor assess the extent of their impact on the audit quality. - The mechanism of the economy (including economic objective, economic policy, quality management organization) (Long, 2012). - The scale of audit firms. - The depth of the audit. - The term of the auditors. - In the researches from abroad, the viewpoints of quality audit are understood as the ability of auditors detecting and reporting about the material misstatement in the presentation and publication of the financial statement of clients audited (viewpoint of DeAgelo (1981), Palmrose, Z (1988), Bradshaw (2001) and most of scientific studies on audit). - Accordingly, the assessment’s results of the factors affecting the audit quality indicate that the ability of auditors detecting material misstatement depends on many factors, especially professional auditors ’capacity. - the ability of reporting violations depends on the independence of the auditors (including pressure from customers audited. - Many other case studies abroad about the factors affecting the quality of audits performed by Mock &. - (2008) also made conclusions on separate factors or groups of factors affecting the audit quality. - In the research findings, the factors identified can be inherited and newly developed, and the important extent of the factors to audit quality may be vary, depending on the perception of the object that researchers conducted investigations and surveys, as well as the location and the context of the research period.. - The research results “Dimentions of audit quality” of Angus Duff, University of Paisley (2004), the factors affecting the financial statement audit quality of the business considered as aspect of technical and service. - The results indicate that the factors belonging to the auditors / audit group (such as independence, competence and experience) and the factors that belong to the company audit (as reputation, size and ability to meet, non-audit services) have an important influence on the audit quality. - Specifically, audit quality does not depend on the size of audit company, the quality of big audit companies and small auditing companies are evaluated equally under the the perspective of the object using the financial statements (the financial analysts) such as research of Imhoff (1988), Chandler (1991) and the American Institute of certified public accountants (AICPA) (1992 and 2002).. - However, there ara many recent researches show that the size of audit firms is one of the factors that affect the audit quality such as research of Titman and Trueman (1986), Beatty (1989), Davidson and Neu (1993), Choi et. - The authors also explain the differences in the quality between the audit firms with different scale due to the basic qualities of auditors (experience, qualifications, ability to work in groups) and the way how to periodically train of the audit firms... - (2011) conducted experimental studies to assess the impact of audit firm’s scale on the audit quality in the United States. - Researching the audit results of the audit firms belonging the Big four and remaining audit firms in the the 2002-2005 period showed that the audit quality of the Big four is different from the audit quality of the remaining audit firms group. - This difference relating to the investment strategies in audit technology: the audit firms belonging the Big four have had greater investment in developing audit technology.. - This is a different strategy to raise their relative value through the audit quality. - In an audit, technology is an important factor in combination with the efforts of auditors and willingness to the appropriate fee for the necessary procedures of the audit has created the great success of the Big four compared with other audit firms.. - (2013) used FANP and FTOPSIS methods for identifying and ranking the factors that affect the audit quality in Iran, including the scale of audit firms stand at No. - 9 of total 15 factors belonging to audit entities affecting the audit quality.. - Research of Modar Abullatif (2013) found that the factors that lead to risks of fraud come from the characteristics and attitudes of managers, while factors of financial situation difficulty of the customers are not important.. - Directly researching on factors that affect quality of business financial audit helps determine the direction to improve auditing quality and ensure auditors’ ability to detect and report the material misstatements, since it is the most important concern of not only companies providing auditing services, but investors and managers in any stocks markets as well. - Factors that affects financial statement audit quality of business Study variables present in the diagram:. - Dependent variable: Financial statement audit quality of business.. - H1: Legal environment factor affects financial statement quality of business.. - Financial statement audit. - quality of business Occupational qualifications (4). - Quality control system of audit firm (5) Others (6). - H2: Factors belonging to business affects financial statement audit quality of business.. - H3: Independence factor affects financial statement audit quality of business.. - H4: Occupational qualifications factor affects financial statement audit quality of business.. - H5: Quality control system of audit firm factor affects financial statement audit quality of business.. - H6: Others factor affects financial statement audit quality of business.. - The compatibility of the audit standards systems. - Strictness of sanctions and responsibilities of the stakeholders. - The integrity of business leaders on responsibility of publishing the financial statements honestly and reasonably. - The complexity in the business line field of enterprises (such as: basic. - The complexity of the items / transactions on the financial statements of enterprise (eg, inventory, accounts receivable, financial investments,.). - Quality of internal control systems in enterprises. - Declaration of independent commitment before conducting the audit in enterprises. - Quality control system of audit. - The role of the independent monitor in the audit firms for each audit HTKS_4 5.4. - The role of supervision departments on audit quality in general HTKS_5 5.5. - The role of quality control of business audit financial statements from the State management agencies. - The responses are highly reliable, showing that auditors have seriously answered and have deep understanding of the questions, in accordance with data analysis using SPSS and AMOS. - Finally, the Confirmatory Factor Analysis (CFA) and Structural equation modeling (SEM) are used to test the reliability, differential values, converged values, and the unitarily of concepts in this study, while assessing effect level of such factors as legal environments, factors belonging to business, independence, occupational qualifications, quality control system of audit firm, and others over the financial audit quality of the business.. - Quality control system of audit firm (HTKS) 0.819. - Cronbach alpha analysis result of each factor is presented as follows: Financial statement audit quality of business is measured with 6 aspects.. - Quality control system of the firm (HTKS. - KMO and Bartlett's tests in factor analysis using 25 observed variables of the scale shows that KMO index is high (0.853) with significance equal to 0 (sig = 0.000). - Only factors that have eigenvalue of higher than 1 were retained in the model.. - However, there are only 6 factors that have eigenvalue of higher than 1, while the eigenvalue of the remaining factors is lower than 1. - This study has built a model of factors affecting financial statement audit quality of business. - The test results showed that factors: H4 - Occupational Qualification is an important factor affecting audit quality of enterprise financial statements. - and H1 - Legal Environment, H2 - Factors belonging to business, H3 - Independence, H5 - Quality control system of audit firm, H6 - Other factors that do not affect audit quality of business financial statements because of (P>. - At the same time, the results showed that theoretical models which is suitable with market data, meaning that there is a positive relationship between the factors that affect audit quality of business financial statements. - Since then, in the perspective of independent auditors, study of effect of audit quality factors in building financial statements has helped auditors focus on important factors affecting on fraud actions in building business financial statement in Vietnam and design appropriate audit procedures detecting fraud, and encouraged auditors to enhance effective audit procedures in order to detect fraud in building Vietnam enterprise financial statements, especially enterprises listed on Vietnam's stock market. - The research results as a reference for auditors to have solutions for improving audit quality of financial statements.. - The recent incidents involve acts of acquiring and manipulating banks in the world and in Vietnam.. - Typical examples are enterprises whose chairman of the Board of Directors is general director. - for implementing frauds (if any) of the board of enterprise directors. - Monopoly in management of a person or a group of people without reasonable control procedures and supervision activities of the Board of Directors for process of building and presenting financial statements and weak internal control.. - If expectation levels are too optimistic, it will put pressure on Executive Board to meet these expectations including to distorting financial statements. - is an important factor affecting risks of derogations in the financial statements that might be frauds of units. - Sector environment has considerable changes in the direction of adverse or positive for enterprises: when there are changes in market demand, competition and macro factors affecting enterprise business plans, enterprises will have trend of handling technically financial statements in order to achieve business goals assigned. - To survive and continue to receive support from investors, banks providing loans, businesses will tend to build financial statements of increasing profits / decreasing losses.. - To maintain financial stability and potentially lucrative, directors or employees of units should adjust financial statements in the positive direction for business benefits.. - Professional qualification of auditors presents the quality of auditing in developed countries. - Similarly, qualification and quality are essentially important to auditing financial statements in Vietnam. - Dimentions of audit quality. - Audit Quality and Auditor Size: An Evaluation of Reputation and Deep Pockets Hypotheses. - Solutions to improve quality of independent audit in Vietnam (Doctoral thesis). - Improving the audit of financial statements of listed firms on Vietnam stock market (Doctoral thesis). - Research on factors that affect financial statement audit quality of companies listed on stock market of Vietnam (Doctoral thesis). - 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