UEH UNIVERSITY

COLLEGE OF BUSINESS
ACCOUNTING DEPARTMENT

REPORT
CONTROL OVER CASH
GROUP 4

Lecturer: Mrs. Phạm Thị Ngọc Bích

Batch - Class: DHCQK48 - AUC03
Members: Trương Đỗ Linh Xuân - 31221024141
Trần Bảo Gia Nghi - 31221024027
Nguyễn Thị Như Ngọc - 31221025750
Lê Thị Diệu Linh - 31221025135
Nguyễn Thị Kiều Trang- 31221025143
Trần Lê Minh Thi - 31221024099

Ho Chi Minh City, 22nd February, 2024

 DECLARATION OF AUTHORSHIP
We certify that this report has been composed by members of Group 2 and it is
the result of our own original research. We confirm that those works from others have
been quoted properly. With the exception of such quotations, this research report is
entirely our own work and we have acknowledged all main sources of help. All
references and verbatim extracts have been quoted, and all sources of information,
including graphs and data sets, have been specifically acknowledged. The purpose of
this report is to provide an in-depth description of the project.
 ACKNOWLEDGEMENT
The successful realization of the project owes its existence to the invaluable and
abundant support extended by numerous individuals. Our heartfelt gratitude goes out
to each and every person who played a pivotal role in bringing this project to fruition,
contributing their time and courage to share innovative ideas with us. We extend our
sincerest thanks to them, and we earnestly hope that the outcomes of our collaboration
prove as beneficial to them as the collaborative process has been for us.
A special acknowledgment is reserved for our esteemed lecturer, Mrs. Pham
Thi Ngoc Bich, whose guidance, unwavering supervision, and provision of crucial
project insights have been instrumental. We also express our appreciation for her
indispensable assistance in the project's completion.
Our profound thanks are extended to Bach Hoa Xanh, whose generosity in
allowing us access to their workplaces for observing daily procedures surpassed all
expectations. Their boundless patience in addressing numerous queries and the
provision of invaluable data on Sales process cycles significantly enriched our
understanding.
Last but certainly not least, the tireless efforts of our dedicated group members
deserve commendation. Their commitment to editing assistance, engaging in late-night
conversations for constructive feedback, and providing unwavering moral support
have been the cornerstone of our project's success. Their belief has been the driving
force that has kept our spirits high and motivation unwavering throughout this
transformative journey.
 INTRODUCTION
Introduction to internal control in cash management is an indispensable part of
an organization's business operations. Cash is not only a significant portion of assets
but also one of the major sources of risk that can impact the stability and success of a
business. In this context, establishing and maintaining an internal control system over
cash becomes extremely crucial. The purpose of this study is to explore the processes
and internal control systems related to cash in a real business environment, specifically
Bach Hoa Xanh - a supermarket chain with nearly 2,000 stores across provinces in the
South, East, and South Central regions of Vietnam.
The data was collected through interviews with relevant individuals,
observations, and research documents. Upon data analysis, all independent variables
support the effectiveness of the internal control system.
Keywords: cash, internal control, risk
Research Motivations and Objectives
Bach Hoa Xanh has witnessed significant changes, including shifts in
personnel, resources, and operational circumstances. These changes may have
impacted the effectiveness of the company's internal control in critical processes. In
the current operational context, management must ensure that cash control procedures
do not carry any hidden risks that could affect the company's value creation.
Additionally, the COSO framework has been utilized to identify and assess
weaknesses in internal control, focusing on fundamental principles. Weaknesses in
internal control can pose risks, including the risk of fraud. An effective internal control
system is equally important for management and auditors, aiding Bach Hoa Xanh in
achieving its objectives efficiently.
Scope of the Research
This study intends to observe and examine the control over cash process
implemented within Bach Hoa Xanh, as well as analyze, evaluate, and identify
potential weaknesses in the process. This leads to recommendations for improving
internal cash control, whether they are deemed effective currently or if they should be
further enhanced, as well as designing risk analysis based on risk estimates to address
the identified potential weaknesses.
Research Objectives
This research aims to understand how internal control is implemented in real
companies by examining, analyzing, and discussing the control over cash process and
the integrated internal control system within the cash control of Bach Hoa Xanh. The
implementation of the internal control system in control over cash and other
unidentified risks provides an interesting topic for auditing students to analyze
financial data and assist in evaluating and creating an effective system to meet the
company's internal control needs. Furthermore, this study also aims to enhance
understanding of how to establish an effective internal control system to prevent errors
and deter fraud in procedures and cash control. Seeking updated data and innovations
in various fields to ensure that we do not fall behind and provide outdated or
incomplete information.
Research Structure
The research is divided into four chapters:
 CHAPTER 1: THEORETICAL BASIS ABOUT INTERNAL CONTROL OF
CASH PROCESS
 CHAPTER 2: INTRODUCTION ABOUT MWG.
 CHAPTER3: INVESTIGATION OF THE CONTROLS OVER THE CASH
PROCESS OF THE ENTERPRISE.
 CHAPTER 04: CONCLUSION AND RECOMMENDATION
TABLE OF CONTENTS
 LIST OF FIGURES & TABLES
FIGURES
Figure 2.1. Logo of Bach Hoa Xanh
Figure 2.2. Liquidation goods booth of Bach Hoa Xanh
Figure 2.3. Pre-ordered goods booth of Bach Hoa Xanh
Figure 2.4. Available goods booth of Bach Hoa Xanh
Figure 3.1. Working Regulations of Bach Hoa Xanh
Figure 3.2. Bach Hoa Xanh’s Dress Code
Figure 3.3. Organizational structure of Bach Hoa Xanh
Figure 3.4. Bach Hoa Xanh recruits a variety of positions many different branches
Figure 3.5. Benefits when working at Bach Hoa Xanh
Figure 3.6. New employee training process at Bach Hoa Xanh
Figure 3.7. Receives orders from customers
Figure 3.8. Staff use barcode scanners to scan prices
Figure 3.9. Cashier order screen
Figure 3.10. Collect money from customers
Figure 3.11. Bill
Figure 3.12. Payoo card machine
Figure 3.13. Bach Hoa Xanh's contact information
Figure 3.14. Quality of clean vegetables at Bach Hoa Xanh according to 4k standards
Figure 3.15. Bach Hoa Xanh opens large-scale shopping events every year to
introduce new products to consumers
Figure 3.16. Customer feedback through the comments section of Bach Hoa Xanh's
homepage
Figure 3.17. MWG app
Figure 3.18. Phone number
Figure 3.19. Bach Hoa Xanh bulletin board
Figure 3.20. Bach Hoa Xanh’s staff take part in training
Figure 3.21. Bach Hoa Xanh’s media channels
Figure 3.22. Web bachhoaxanh.com
Figure 3.23. Fanpage Bach Hoa Xanh on Facebook
TABLES
Table 3.1. Identify and analyze the risks of Bach Hoa Xanh
Table 3.2. Analyze the risks of BHX when collects money from the customer
Table 3.3. Analyze the risks of BHX when collects customer’s money from the bank
Table 3.4. Analyze the risks of BHX when paying for stationery supplies
Table 3.5. Analyze the risks of BHX when paying salaries to employees
Table 3.6. Analyze the risks of BHX when paying money back to customers
Table 3.7. Determining information requirements in Bach Hoa Xanh
Table 3.8. Attributes that Bach Hoa Xanh needs to ensure to get quality information
Table 4.1. Strengths of the internal control system in Bach Hoa Xanh
Table 4.2. Weaknesses of the internal control system in Bach Hoa Xanh
 CHAPTER 01: THEORETICAL BASIS ABOUT INTERNAL CONTROL OF
CASH
1.1. Control characteristics and objectives.
1.1.1. Control characteristics.
Business cash usually includes: Cash, bank deposits and cash in transit.
Cash has a close relationship with major business cycles, such as: Sales and
collection cycle, purchase and payment cycle, salary cycle, production cycle... so it is
easy to make mistakes.
Embezzlement, embezzlement or misappropriation.
Cash in many units often has large amounts and many transactions, so
violations are easy to occur and difficult to detect.
Cash management will minimize solvency risks and increase the efficiency of
the unit's use of cash.
1.1.2. Control objectives.
According to COSO Framework 2013, good control of money will help
businesses achieve all 3 common objectives, which are:
- Efficiency and effectiveness in operations
- Reliable reporting
- Comply with laws and regulations
Efficiency and effectiveness: high control of cash will help improve the effectiveness
and efficiency of business operations. Collecting and disbursing cash correctly,
sufficiently, promptly, in accordance with needs, without waste will help limit the loss
and misuse of the unit's cash for personal purposes, thereby helping to make good
purchases, sales and timely salary payments.
Reliable reporting: Cash receipts and payments need to be recorded fully, accurately
and promptly in order to provide information about cash revenue, expenditure and
fund balances in an honest and reasonable manner on the financial statements.
Comply with laws and regulations: The revenue and payment of cash must be in
accordance with the provisions of law and comply with the financial regulations of the
unit.
1.2. Main control procedures for revenue, expenditure and fund balance.
1.2.1. General control procedures for cash.
 The cash of the entity is collected from many different sources such as direct
revenue from sales, customer debt collection, and also spent for many different
purposes. General control procedures are usually:
- Using competent and honest personnel
- Reasonable division of responsibilities
- Authorization and approval
- Analytical review
1.2.2. Control procedures for cash receipts.
Direct cash receipts from sales and service provision:
- When selling and collecting cash directly, it is necessary to separate the sales
and collection functions.
- For service units such as hotels, restaurants... the unit can assign a cashier
independent of the service department to prepare payment slips or invoices. Consistent
numbering before use and on payment slips, invoices or tickets is essential to prevent
errors.
- For retail companies, one employee often has to take on many tasks such as
selling, receiving money, and keeping books. Under such conditions, the best control
procedure is to use collection devices:
 Use a cash register system so customers can see and check while making
purchases.
 Payment slips must be printed, and customers are encouraged to receive the
slips and bring them along with the goods.
 At the end of the day, it is necessary to calculate the total amount of money
collected from goods sold based on the tracking data on the machine and
compare it with the amount paid into the fund by the sales staff during the day.
 If not equipped with an advanced machinery system, it is necessary to manage
daily revenue by requiring daily sales reports.
Account receivable from customers:
- If customers come to pay: Encourage them to ask for a receipt or payment
slip.
- If collecting money at the customer's premises: Strictly manage referrals, and
regularly compare debts to prevent deception.
- If collecting money by post: It is necessary to assign different employees to
undertake tasks such as: preparing sales invoices - tracking debts - reconciling general
books and details of debts - opening letters and list checks received-submit checks to
bank-collect money.
1.2.3. Control procedures for cash expenditure.
- Using payment methods via banks, minimize using cash on hand in payment:
 The general rule is that most expenses should be paid through banks, except
for some small amounts where cash on hand is used.
 It is recommended to build a system of sequentially numbered cheques before
use. Cheques that have been prenumbered but not used must be fully retained
to avoid theft or misuse. Damaged or invalid cheques must be stamped as
canceled or crossed out to avoid reuse, and must be fully archived. Before
signing a cheque, original documents must be marked to prevent reuse of
original documents for multiple payments.
- Apply the principles of delegation and approval:
 Managers should specifically delegate authority to subordinates in certain
tasks. For cash, the right to competent and honest reviewers must be complied
with, and a formal document on assignment of responsibilities must be issued.
- Develop procedures for approving expenses:
 Cheques are only drawn up and signed after checking the relevant documents
and there needs to be a way to follow up until these cheques have been sent.
- Monthly reconciliation with bank subsidiary books:
 The balance of the bank deposit account on the books must be equal to the
balance of the sub-book at the bank. All differences must be adjusted
appropriately, cases with unknown causes must be transferred to other
receivables or payables and handled appropriately.
1.2.4. Control procedures for fund balance.
- For the amount of cash in the fund:
 Need to be equipped with safes; Sophisticated anti-theft equipment.
 If possible, you should buy insurance at an appropriate level for money
because this is also an asset that can easily burn or be stolen.
 Money should be kept at a minimum level: The unit must base on its spending
needs to set a maximum level of cash balance, beyond this limit the unit must
deposit money in the bank.
 However, when the balance of this fund is lower than the minimum level, the
treasurer will receive a cashier's check at the bank, this check must have an
amount equal to the amount deposited in the fund and equal to the amount of
the account's decrease. bank.
 Periodically or irregularly conduct fund inventory and compare with the cash
book.
 Compare the cash balance on the Ledger with the Cash Fund book prepared by
the treasurer.
- For bank account balances:
  Control procedures in case: The cash balance on the books does not match the
actual cash balance at the bank.
 Bank accountants prepare a reconciliation table of bank deposit balances to
compare with the actual balance at the bank every month. Make adjustments to
all items causing differences between the book balance and the bank balance,
check the correctness and determine the cause.
1.3. Some common cash frauds and appropriate control procedures.
1.3.1. Cash receipts.
Skimming: Skimming fraud is a type of white-collar crime that involves taking
the cash of a business prior to entering it into the accounting system. Skimming is an
“off-book” fraud because the cash theft has occurred before it is entered into the
bookkeeping system. Thus, it is never reported on the company’s accounting records.
Lapping: Lapping is a fraudulent accounting techniques that occurs when an
employee alters the financial records to hide cash stolen from the company. Basically,
the employee will take subsequent cash received and apply it to an accounts receivable
to cover the theft.
1.3.2. Cash embezzlement.
This type of fraud is less common because it is easier to detect.
There are 3 times when money can be stolen from the unit:
 As soon as the sale is made.
 When debt is collected.
 Transfer money to another person's account if the customer pays by cheques.
1.3.3. Cash expenditure.
The trick is often to falsely declare expenses through forging original
documents such as purchase invoices or purchase orders to get money from the unit.
 CHAPTER 2: INTRODUCTION ABOUT MWG.
2.1. General information.
2.1.1. General information.
 Name: BACH HOA XANH TRADING JOINT STOCK COMPANY
 Representative: Pham Van Trong
 Website: bachhoaxanh.com
 Tax code: 0310471746
 Address: 128 Tran Quang Khai Street, Tan Dinh Ward, District 1, Ho Chi Minh
City, Vietnam.
 Core Business: trading of food
2.1.2. Vision, Mission and Core Value.
Vision
The Vision of Bach Hoa Xanh according to the leadership:
 To become the leading retail system in Vietnam: Bach Hoa Xanh aims to
become the No. 1 retail chain in Vietnam in terms of both scale and market
share.
 To provide Vietnamese consumers with the best products: Bach Hoa Xanh is
committed to bringing customers high-quality, safe and fresh products at
competitive prices.
 To improve the quality of life of Vietnamese people: Bach Hoa Xanh wants to
contribute to improving the quality of life of Vietnamese people by providing
essential products and services.
Mission
The Mission of Bach Hoa Xanh according to the leadership:
 To bring Vietnamese consumers the best quality products at the most
reasonable prices: Bach Hoa Xanh always strives to find and provide customers
with products of clear origin, ensuring quality and food safety.
 To provide the best customer service: Bach Hoa Xanh is committed to bringing
customers a convenient, comfortable and satisfying shopping experience.
 To contribute to the socio-economic development of Vietnam: Bach Hoa Xanh
wants to contribute to the socio-economic development of Vietnam by creating
jobs, promoting domestic production and improving people's lives.
The leadership of Bach Hoa Xanh always emphasizes the importance of fulfilling the
company's vision and mission. To achieve this vision and mission, Bach Hoa Xanh has
implemented many strategies, including:
 Expanding the store system: Bach Hoa Xanh continuously expands its store
system to densely populated areas to meet the shopping needs of the people.
  Diversifying products: Bach Hoa Xanh constantly diversifies its products,
providing customers with more choices.
 Improving the quality of service: Bach Hoa Xanh focuses on improving the
quality of service, training professional and attentive staff.
 Promoting the application of technology: Bach Hoa Xanh applies technology to
business operations to improve efficiency and convenience for customers.
With its efforts, Bach Hoa Xanh has achieved remarkable successes. Currently, Bach
Hoa Xanh is one of the largest retail systems in Vietnam with more than 2,000 stores
nationwide. Bach Hoa Xanh is trusted and chosen by Vietnamese consumers because
of its good product quality, reasonable price and thoughtful customer service. The
vision and mission of Bach Hoa Xanh are the guiding compass for all of the company's
activities. The leadership of Bach Hoa Xanh is committed to continuing its efforts to
make Bach Hoa Xanh the leading retail system in Vietnam, contributing to improving
the quality of life of Vietnamese people.
Core Value
- Commitment and Responsibility:
 Always fulfill assigned tasks.
 Take responsibility for one's actions and words.
 Demonstrate a high sense of responsibility at work.
- Honesty in Money and Integrity in Relationships:
 Always be honest in all financial transactions.
 Keep promises in all relationships.
 Possess a sense of fairness and integrity.
- Customer Dedication:
 Always prioritize the interests of customers.
 Listen and understand customer needs.
 Provide thoughtful and professional customer service.
- Love and Support for Colleagues:
 Help and support each other at work.
 Create a united and cohesive working environment.
 Possess a high team spirit.
- Passion for Work:
 Have an enthusiastic and dedicated work spirit.
 Always strive to do the best work possible.
 Demonstrate a high level of dedication to the company.
- Keeping Your Word and Always Putting Integrity First:
 Always keep your promises and commitments.
 Be responsible for your words and actions.
 Build trust and credibility with customers, colleagues, and partners.

In addition to the above 6 core values, Bach Hoa Xanh also emphasizes the spirit of:
  Continuous Improvement: Always look for new solutions to improve product
quality, service, and operational efficiency.
 Learning and Development: Encourage employees to learn and improve their
knowledge and skills for self-development.
 Teamwork: Respect, support, and effectively coordinate between individuals
and departments.
Core values are the foundation for all activities of Bach Hoa Xanh. The leadership
of Bach Hoa Xanh is committed to building a suitable working environment and
corporate culture so that each employee has the opportunity to maximize their
potential and contribute to the overall development of the company.
2.1.3. Corporation Identify Program and Product images.

Figure 2.1. Logo of Bach Hoa Xanh.

Bach Hoa Xanh's logo has two main parts: Text and image.
As for the image of the logo, it is a moving human symbol in the center of a
circle - an iconic logo of MWG. The outer circle symbolizes the globe, expressing the
desire to bring the brand globally. To do that, we must put the customer at the center,
giving customers the best satisfaction, which is why the human image in the center of
the circle appears on the logo. Besides, images of people created from squares
represent many of BachHoaXanh's retail stores.
As for the text of the logo, the font used in the logo design is lowercase to
create a close and friendly look, “XANH” is uppercase to emphasize the quality of the
products. The font's tilt to the right is like a message that is always facing forward.
Bach Hoa Xanh logos are often used to identify and differentiate those grocery
stores from other stores. This logo is very important for green department stores,
because it helps customers easily identify and find the products they need quickly.
Bach Hoa Xanh is not only a brand, but also a movement, a lifestyle friendly to
the environment and people. The products sold at Bach Hoa Xanh are meticulously
produced and selected to ensure safety, freshness and high quality. By prioritizing the
use of organic products, free of toxic chemicals and packaging with recycled materials,
green department stores are demonstrating a sustainable and strategic community
example for environmental protection efforts.
At the same time, the Bach Hoa Xanh logo also gives customers a feeling of
peace of mind when shopping at the store, because they know that the products here
are safe and good for their health and that of their families. Not only does Bach Hoa
Xanh help customers build a healthy and economical lifestyle, but also aims to create a
better world for everyone.
Goods traded at Bach Hoa Xanh are divided into 3 main categories: Available
goods, liquidation goods and pre-ordered goods.
Liquidation goods at Bach Hoa Xanh are items that are available and have a
short shelf life, but are still of good quality and can be used without affecting the user's
health.
Particularly for liquidation goods of fresh products such as vegetables, tubers,
meat, fish... you should buy and use them on the day of delivery and do not refreeze
and preserve frozen goods to avoid adverse effects to health.

Figure 2.2. Liquidation goods booth of Bach Hoa Xanh.

 Pre-ordered goods at Bach Hoa Xanh are items that are not available and when
purchasing these products, you will have to wait a few days to receive the product.
Pre-ordered products at Bach Hoa Xanh are mostly meat, fish, vegetables, tubers or
some fruits that are close to being in season.

Figure 2.3. Pre-ordered goods booth of Bach Hoa Xanh.

Available goods are products currently available at Bach Hoa Xanh. When
ordering, you can choose a delivery date and Bach Hoa Xanh can deliver to you on the
same day.
 Figure 2.4. Available goods booth of Bach Hoa Xanh.
2.2. The process of formation and development.
At the end of 2015, XANH Department Store was put into testing as a chain
store specializing in retailing fresh food (meat, fish, vegetables, fruits,...) and essential
quality products with clear origins.
The company took the idea from Alfamart - the top 2 largest department store
retail chains in Indonesia, and tried to replicate it in Vietnam.
In early 2017, Bach Hoa Xanh developed with 50 stores, all in Binh Tan district
with average monthly revenue reaching 1 billion VND/store and average value/invoice
of about 50,000, these are the numbers. The number is very high compared to other
minimart chains.
Bach Hoa Xanh continues to expand the market from Binh Tan to Tan Phu and
focuses on filling these two western populous districts.
Also in 2017, Bach Hoa Xanh began signing fresh food purchasing contracts
with major partners to ensure a large and sustainable source of goods, specifically a
contract to purchase fruit from Hoang Anh Gia Lai.
In 2018 MWG started to change the Bach Hoa Xanh store model. Accordingly,
the new store will have an area of 150-250 m2 (for standard types) and 300 m2 (for
large types), located on major roads leading to residential areas or right next to
traditional markets.
In addition, the space for fresh food has also been expanded. New standards
have been added to evaluate employee KPIs: welcoming attitude, clean and tidy
display space, fresh food, meat and fish processing skills...
 In 2019, Bach Hoa Xanh took the first quarter of the year to complete the
conversion/closing of the remaining stores of the old model before starting to expand
massively at a rate of about 60 new stores per month.
As of October 31, 2019, there were a total of 866 Bach Hoa Xanh stores, 452 of
which were located in 20 Southern and South Central provinces.
After successfully opening in Ho Chi Minh City, the leader said this chain will
open in cities with similar business environments such as Hanoi and Da Nang before
thinking about expanding nationwide. Bach Hoa Xanh's goal is to capture 40% market
share in the business segment.
Accordingly, the direction of the Bach Hoa Xanh chain will not create product
differentiation but will only be a "traditional market with better service".
Bach Hoa Xanh provides daily essential products that are fresh, clear in origin,
and diverse in types; Reasonable prices compared to traditional markets and small
stores; in a clean, friendly space and in accessible locations for homemakers
2.3. Dependent units.
Currently, the Bach Hoa Xanh store system has almost covered all districts in
Ho Chi Minh City, consumers can easily find Bach Hoa Xanh stores near the area
where they live with 1,698 retail stores and present in most provinces and cities in the
south and some provinces in the Tay Nguyen region.
 CHAPTER 03: INVESTIGATION OF THE CONTROLS OVER THE CASH
PROCESS OF THE ENTERPRISE.
3.1. Control Environment.
3.1.1. Demonstrate commitment to integrity and ethical values.
3.1.1.1. Perspective of the highest-ranking leader in the unit (tone at the top).
Leadership Style of Bach Hoa Xanh:
Decisiveness:
 Bach Hoa Xanh leaders make decisions quickly and decisively.
 They are not afraid to make tough decisions, even with limited information.
 They are confident in their judgment and are willing to take responsibility for
their decisions.
Focus on Results:
 Bach Hoa Xanh leaders always prioritize goals and results.
 They closely monitor work progress and ensure that goals are met on time and
with quality.
 They have a high sense of responsibility and always strive to achieve the best
work results.
Openness and Transparency:
 Bach Hoa Xanh leaders are always open and transparent in all activities.
 They regularly share information with employees and listen to their opinions.
 They create an open working environment where everyone can feel comfortable
sharing ideas and feedback.
Integrity and Ethics:
  Bach Hoa Xanh leaders always uphold integrity and ethics in all actions.
 They always keep their promises and commitments.
 They act with integrity and fairness, always putting the common good first.
Approachability and Care:
 Bach Hoa Xanh leaders are always approachable and caring towards
employees.
 They regularly meet and talk with employees to understand their work and life
situations.
 They create a friendly and cohesive working environment where everyone feels
respected and valued.
Development Orientation of Bach Hoa Xanh:
Market Expansion:
 Bach Hoa Xanh continues to expand its store network nationwide, especially in
rural areas and new provinces and cities.
 The goal of Bach Hoa Xanh is to become the leading retail chain in Vietnam in
terms of the number of stores and market share.
Improving Product Quality and Service:
 Bach Hoa Xanh focuses on improving product quality, ensuring clear origin and
safety for consumers' health.
 Bach Hoa Xanh also focuses on improving service quality, providing a
convenient and comfortable shopping experience for customers.
Technology Application Development:
 Bach Hoa Xanh promotes the application of technology in business operations,
aiming to improve management and operational efficiency.
 Bach Hoa Xanh also develops mobile applications to serve customers' online
shopping needs.
Private Label Development:
 Bach Hoa Xanh develops private labels for essential consumer products, aiming
to increase competitiveness and improve profits.
 Bach Hoa Xanh also focuses on building reputation and quality for private
labels.
Social Responsibility:
 Bach Hoa Xanh participates in social welfare activities, contributing to the
overall development of the community.
 Bach Hoa Xanh also focuses on environmental protection and efficient energy
use.
Bach Hoa Xanh is striving to implement the above development orientations to
become the leading retail chain in Vietnam, providing customers with the best quality
products and services.
3.1.1.2. Standards of conduct.
* Time regulations.
Working Hours of Bach Hoa Xanh Employees: Bach Hoa Xanh employees work in
shifts, each shift lasting 8 hours.
 Morning shift: 5:30 AM - 2:30 PM
 Afternoon shift: 2:30 PM - 10:00 PM
 Night shift: 10:00 PM - 5:30 AM
Shift Start Time:
 Employees must be present and ready to serve customers 10 minutes before
their shift starts.
 In case of requesting leave/shift change, employees must notify their supervisor
1 day in advance, no more than 3 times/month.
 In case of an emergency leave/shift change, employees must notify their
supervisor 1 hour in advance, no more than 2 times/month.
Meal Times:
 Employees will take their meals according to the arrangement of the
Manager/Assistant Manager on duty.
 Breakfast time: before 8:00 AM, 15 minutes meal time.
 Lunch time: 11:30 AM - 1:30 PM, 30 minutes meal time.
 Dinner time: 5:30 PM - 7:00 PM, 30 minutes meal time (employees starting
their shift at 6:00 PM eat before starting their shift).
Night Shift Break Time: 45 minutes break.
Notes: These regulations may vary depending on each store. Employees should
contact the store where they work for more details.
 Figure 3.1. Working Regulations of Bach Hoa Xanh

* Regulations on behavior and communication.

- Uniform:
 Clothes
Male employees:
 Dark green polo shirt with the Bach Hoa Xanh logo embroidered in yellow on
the left chest.
 Black or khaki pants.
 Black shoes.
 Dark green cap with the Bach Hoa Xanh logo.
Female employees:
 Dark green polo shirt with the Bach Hoa Xanh logo embroidered in yellow on
the left chest.
 Black or khaki pants.
 Knee-length black skirt (optional).
 Black shoes.
 Dark green cap with the Bach Hoa Xanh logo.
 Hairstyle:
Male employees:
 Hair must be cut short and neat, not longer than shoulder length.
  Hair must not be dyed in bright colors.
 Hair must not cover ears or forehead.
Female employees:
 Hair can be long or short, but must be tied neatly.
 Hair must not be dyed in bright colors.
 Hair must not cover the face.
 Jewelry:
Male employees: No jewelry is allowed, except for wedding rings and watches.
Female employees:
 Jewelry is allowed, but it must be small and not too flashy.
 No large earrings, necklaces, or bracelets are allowed.
 Nails:
Male employees: Nails must be cut short and kept clean.
Female employees:
 Nails may be painted, but the color must be light and not too flashy.
 Nails must not be too long.
 Makeup:
Female employees: Light makeup is allowed, but not too heavy.
Notes:
 Employees must always wear their uniforms when working.
 Employees must comply with the company's dress code.
 If employees violate the dress code, the company may take disciplinary action.
In addition, Bach Hoa Xanh also has some other dress regulations for its employees,
including:
 Jackets: Employees are issued dark green jackets to wear in cold weather.
 Aprons: Sales staff in the fresh food area are required to wear white aprons.
 Helmets: Delivery staff are required to wear dark green helmets with the
company logo.
 Figure 3.2. Bach Hoa Xanh's Dress Code.

Bach Hoa Xanh has a fairly strict dress code for its employees. However, this
helps to create a professional and recognizable appearance for employees, while also
promoting the Bach Hoa Xanh brand and creating a unified company image.
- Behavior:
Bach Hoa Xanh emphasizes the following code of conduct for its employees:
 Always prioritize customers:
 Be friendly, welcoming, and supportive to customers: Bach Hoa Xanh
employees should always show a welcoming and supportive attitude towards
customers.
 Actively listen and understand customer needs: Listen carefully to understand
the needs and desires of customers.
 Find suitable solutions and meet customer requirements: Propose appropriate
solutions and meet customer requirements to the fullest extent possible.
 Be honest and transparent:
 Be honest in all communication and actions: Be honest when providing
information, consulting products, and solving problems for customers.
 Provide accurate and complete information to customers: Ensure that the
information provided to customers is accurate, complete, and does not cause
misunderstandings.
 Keep promises and commitments to customers: Fulfill the commitments made
to customers.
 Be respectful and professional:
  Always respect customers and colleagues: Always show respect, courtesy, and
appropriate behavior towards everyone.
 Use polite and appropriate language: Avoid using offensive, uncultured, or
annoying language to customers and colleagues.
 Maintain a positive and professional attitude in all situations: Solve problems
professionally, calmly, and effectively.
 Work efficiently and responsibly:
 Fulfill assigned tasks well: Take responsibility and complete assigned tasks on
time and with quality.
 Use time effectively and save resources: Use time wisely, save company
resources, and avoid waste.
 Be responsible for your work and actions: Take responsibility for what you do
and be ready to solve problems that arise.
 Comply with internal rules and regulations:
 Comply with the company's internal rules and regulations: Regulations on dress
code, working hours, occupational safety, etc.
 Maintain common hygiene and working environment: Contribute to creating a
clean, tidy, and safe working environment for everyone.
 Participate in collective activities and the company's common development:
Participate in collective activities, unite, and develop the company together.
In addition to the above code of conduct, Bach Hoa Xanh also expects employees to
have the following qualities:
 Be in good health and have a strong work ethic: Ensure good health to work
well and contribute to the company.
 Have good communication and sales skills: Communicate effectively with
customers, consult products, and persuade customers to buy.
 Have a spirit of learning and self-development: Always be eager to learn,
improve knowledge and skills to enhance personal capacity.
 Have the ability to work in a team and cooperate: Work effectively in a
collective environment and coordinate well with colleagues.
Bach Hoa Xanh believes that a team of employees with good qualities and code of
conduct will contribute to building a professional and prestigious image for the
company and bring the best experience to customers.
* Other regulations.
 Backpacks, bags, and personal jackets:
 Must be placed in designated areas.
 Helps to ensure security, order and aesthetics.
 Goods:
  Must have an invoice before use.
 Must have an invoice attached to the product.
 Helps to control goods, ensure food safety and financial transparency.
 Products taken out of the supermarket:
 Must have an invoice or document.
 Helps to control goods, prevent loss and ensure customer rights.
Compliance with these regulations helps to improve the efficiency of the
supermarket, ensure security, safety, transparency and provide the best possible
experience for customers.
3.1.2. Exercises oversight responsibility.
3.1.2.1. Powers and responsibilities of the Board of Directors.
The Board of Directors (BOD) of Bach Hoa Xanh has the following powers and
responsibilities:
Powers:
 Determine strategic direction: The BOD is responsible for determining the
vision, mission, strategic goals and long-term development plans of Bach Hoa
Xanh.
 Decide on important issues: The BOD has the right to decide on important
issues related to business activities, finance, investment, human resources, etc.
of Bach Hoa Xanh.
 Supervise the activities of the General Management Board: The BOD has the
right to supervise the activities of the General Management Board, ensuring that
the General Management Board complies with the decisions of the BOD and
complies with laws and regulations.
 Elect and dismiss the General Director: The BOD has the right to elect and
dismiss the General Director according to the provisions of law and the
Company's Charter.
 Approve plans and financial reports: The BOD has the right to approve business
plans, investment plans, financial plans, etc. and financial statements of Bach
Hoa Xanh.
Responsibilities:
 Ensure the interests of shareholders: The BOD is responsible for ensuring the
interests of shareholders, protecting the company's assets and using the
company's capital effectively.
 Compliance with law: The BOD is responsible for complying with laws,
regulations and the Company's Charter in all activities.
 Public transparency: The BOD is responsible for publicly disclosing
information about the company's operations to shareholders and stakeholders.
  Report on activities: The BOD is responsible for reporting on the activities of
the BOD to the General Meeting of Shareholders.
In addition, the BOD of Bach Hoa Xanh may also have other powers and
responsibilities as prescribed by law and the Company's Charter. The BOD plays an
important role in ensuring the efficient operation and sustainable development of Bach
Hoa Xanh.
3.1.2.2. Independent and with appropriate expertise.
To ensure independence and appropriate expertise, Bach Hoa Xanh can apply the
following measures:
* For the Board of Directors (BOD):
BOD members:
 Diversity: The BOD should include members with diverse backgrounds,
expertise and perspectives.
 Independence: BOD members must not be managers or employees of the
company or have any related relationship with the company.
Election process:
 Transparency: The BOD election process must be carried out in a transparent
and public manner and ensure shareholder participation.
 Fairness: The election process must be fair to all candidates.
* For the Internal Control Board (ICB):
ICB members:
 Expertise: ICB members must have expertise in auditing or finance.
 Independence: ICB members must not be managers or employees of the
company or have any related relationship with the company.
Powers:
 Access to information: The ICB has the right to access all information,
documents and records related to the company's operations.
 Inspection: The ICB has the right to inspect the financial, accounting and other
activities of the company.
* Other measures:
 Code of ethics: Bach Hoa Xanh should develop and implement a code of ethics
for all employees.
 Whistleblowing channel: Bach Hoa Xanh should establish a whistleblowing
channel so that employees and stakeholders can report unethical or illegal
behavior.
 Training: Bach Hoa Xanh should organize regular training for employees on
regulations, code of ethics and accountability.
Applying these measures helps ensure that the BOD and SB of Bach Hoa Xanh
operate independently, objectively and with appropriate expertise, contributing to
protecting shareholder rights and improving the company's operating efficiency.
3.1.2.3. Supervision by the Board of Directors.
The Board of Directors (BOD) of Bach Hoa Xanh plays an important role in
supervising the company's operations. The BOD performs supervision through the
following activities:
Evaluate performance:
 The BOD regularly evaluates the company's performance based on financial
statements, activity reports and other indicators.
 The BOD may require the General Management Board to report on specific
issues.
Supervise the General Management Board:
 The BOD supervises the performance of the General Management Board.
 The BOD may require the General Management Board to explain issues related
to the company's operations.
Financial audit:
 The BOD may conduct a financial audit of the company.
 The BOD may hire an independent audit firm to conduct a financial audit of the
company.
Review major transactions:
 The BOD reviews and approves major transactions of the company.
 The BOD may require the General Management Board to explain major
transactions.
Review compliance issues:
 The BOD reviews and ensures that the company complies with laws and
regulations.
 The BOD may require the General Management Board to report on compliance
issues.
Review risk issues:
 The BOD reviews and assesses the risks facing the company.
 The BOD may require the General Management Board to report on risk
management measures.
In addition, the BOD of Bach Hoa Xanh may also carry out other supervision activities
as prescribed by law and the Company's Charter. The supervision of the BOD plays an
important role in ensuring the efficient, transparent and law-abiding operation of Bach
Hoa Xanh.
3.1.3. Establishes structure, authority and responsibility.

Figure 3.3. Organizational structure of Bach Hoa Xanh.

Bach Hoa Xanh is a fast-moving consumer goods retail chain with a mini
supermarket model owned by Mobile World Investment Joint Stock Company
(MWG). The organizational chart is presented in a very professional manner with a
scientific and reasonable department arrangement, clear and appropriate tasks for
employees in each department, and specific assignment of responsibilities for each
office employee in the company. The organizational chart helps the company operate
at its best, helps departments coordinate smoothly and closely, contributing to creating
a strong Bach Hoa Xanh brand.
3.1.4. Demonstrates commitment to competence.
3.1.4.1. The human resource policy and its practical application.
The policies and practices regarding human resources encompass guidelines
and regulations regarding recruitment, compensation, and retention of competent
employees, as well as the implementation of these guidelines and regulations in
practice. At Bach Hoa Xanh, there is always a high demand for recruiting a large
number of employees, with diverse job positions, and importantly, the benefits and
compensation packages are of good quality.
* Recruitment policy and welfare policy at Bach Hoa Xanh.
 The demand for recruiting personnel at Bach Hoa Xanh.
Bach Hoa Xanh opens supermarkets according to the principle of being 800m
apart, with each supermarket having a wide area of 16m and a length of 150m. The
primary business purpose is to capture 40% of the market share in the supply of clean
food and vegetables. Therefore, to meet this plan, they need a large workforce capable
of meeting the job requirements at the retail stores in the market. BACH HOA XANH
recruits for various positions, ranging from entry-level roles that do not require
qualifications or experience to higher positions such as managers, cashiers, etc.
 Recruitment policy at Bach Hoa Xanh.
Applicants are not required to have experience, qualifications, or attractive
appearance. You just need to have good health, the ability to work diligently and
energetically, be between the ages of 18 and 40, and have completed at least secondary
education. If you meet these criteria, you can apply at Bach Hoa Xanh.
Specifically, Collaborators are suitable for students or individuals seeking part-
time employment to earn extra income, willing to work flexible shifts such as day or
night shifts. Full-time employees will work eight-hour shifts rotating between
morning, afternoon, and evening. They will undertake various job roles to meet the
demands such as sales, inventory, cashiering, and night shifts, etc.

Figure 3.4. Bach Hoa Xanh recruits a variety of positions for many different
branches.
 Welfare policy at Bach Hoa Xanh.
 Promotion opportunities after 6 months of work. Many sales staff, cashiers have
the opportunity for rapid advancement, with some being appointed as store
managers or branch managers after just 6 months of work. The advantage at
Bach Hoa Xanh stores is the clear and transparent promotion opportunities for
employees, specifically outlined for each position, creating a comfortable and
hardworking environment for everyone in their job.
 Stable Income: How much is the salary at Bach Hoa Xanh? For an ordinary
supermarket employee, the average salary ranges from 6 to 8 million
Vietnamese dong per month. When you become a manager or store manager,
the salary will be higher, which is considered quite stable compared to the
current cost of living in Vietnam.
 Working at Bach Hoa Xanh, you not only enjoy competitive salaries but also
receive many significant benefits. These include monthly performance-based
bonuses, year-end bonuses, opportunities for promotion to managerial positions
after just 6 months of work, chances to travel domestically and internationally,
and numerous shopping discounts at The Gioi Di Dong and Dien May Xanh
retail systems.
 Figure 3.5. Benefits when working at Bach Hoa Xanh.

=> Policies and practices must reflect the expectations and requirements of investors,
governmental agencies, and other stakeholders, serving as the foundation for
determining the necessary competencies for all employees within the enterprise. It is
the basis to assist Bach Hoa Xanh in achieving its objectives, as well as to adapt
appropriately to changes in the business environment. Human resource policies and
practices must permeate throughout the entire organization of Bach Hoa Xanh, starting
from the Board of Directors down to the Chief Executive Officer, from the Chief
Executive Officer down to senior managers, and then disseminating to all levels of
management within the organization.
* Bach Hoa Xanh assesses the competencies of its employees.
Competency is the professional ability to perform assigned tasks. It reflects the
skills and relevant knowledge acquired through work experience, training, and
qualifications. Competency is manifested through individuals' attitudes, understanding,
and behavior when carrying out their responsibilities. Bach Hoa Xanh clearly defines
the competency requirements for a specific job and specifies them in terms of
knowledge and skills.
For example, Bach Hoa Xanh may recruit for a sales staff position without
requiring experience or qualifications. However, when hiring for higher positions such
as management roles, there are higher demands for qualifications, managerial
competence, and soft skills.
In determining the necessary competencies, Bach Hoa Xanh considers the
balance between supervision and the competency requirements of employees, while
also weighing competency against costs.
In addition, the Board of Directors evaluates the competency of the Chief
Executive Officer, and in turn, managers assess the competency of all employees
within the unit as well as external service providers. The evaluation process is based
on the human resource policies and practices that have been established, with actions
taken as necessary to address any shortages or surpluses in resources. For example,
due to a change in business operations, Bach Hoa Xanh may need to reallocate
resources to areas experiencing a shortage of personnel (such as when the unit
launches a new product in the market). At this time, Bach Hoa Xanh must reinforce its
sales and marketing teams and determine whether the competencies of transferred
employees are suitable for their new positions. In summary, managers are responsible
for promptly addressing situations of personnel shortages.
3.1.4.2. Attracting, developing, and retaining competent individuals.
The human resource policy is manifested through the attraction, development,
evaluation, and retention of suitable managers, employees, and external service
providers in line with achieving the unit's objectives. Based on this perspective,
managers at all levels need to take measures to:
 Attract: Identify and recruit candidates who fit the culture, management style,
and needs of the unit, and meet competency requirements.
 Training: aims to provide opportunities for individuals to develop
competencies suitable for their positions and assigned tasks. Through training,
employees must understand the behavioral standards and competencies that the
unit expects for each position. There are various training methods such as
formal training, self-study, and on-the-job training.

Figure 3.6. New employee training process at Bach Hoa Xanh.

At Bach Hoa Xanh, new employees will undergo training through the '6-
touchpoint' process. In this training process, new employees will go through 6
steps: Training -> Apprenticeship -> First Night Shift -> First Week -> First
Month -> Probation Evaluation. At these 6 points in time, new employees
greatly need attention, inquiries, and encouragement from Bach Hoa Xanh's
managers to create motivation.
 Direction: Bach Hoa Xanh's management needs to guide individuals on the
results to be achieved for each person, orient employees on the skills and
knowledge required to achieve the unit's goals, and help employees adapt to
changes in the work environment.
 Evaluation: Measures the individual's achievement of unit goals as well as the
behaviors expected by the unit.
For example, for a cashier at Bach Hoa Xanh, after one month of work, the unit
will measure the results and work productivity of that employee, such as
punctuality, customer satisfaction, and achievement of KPIs.
 Additionally, evaluation needs to focus on the expectations of service providers,
customers, or other stakeholders.
 Retention: employs various measures, including appropriate training and
rewards.
For example, based on the KPI bonus for July 2021, the store manager's bonus
reached nearly 40 million VND. Furthermore, during operations, if the store's
revenue is insufficient in any month, the company compensates by increasing
bonuses to ensure no impact on employee income. All adjustments are
transparent, obvious, and fair to employees.
=> Through the recruitment, training, orientation, and evaluation processes, any
behavior inconsistent with behavioral standards, human resource policies, and
practices will be detected, reviewed, and corrected promptly at all levels within the
unit. Therefore, Bach Hoa Xanh will actively ensure the competence of its staff to
support the achievement of unit goals while balancing costs and benefits.
3.1.4.3. Planning and preparation for succession.
Managers need to identify and assess which positions (functions) are crucial
and most important in achieving the unit's goals. To determine which positions are
critical, it is necessary to consider their impact (temporary or permanent) on the unit's
operations. Critical positions require thorough preparation of successors as well as the
need for contingency resources.
For example, the Chief Executive Officer, senior managers, strategic suppliers,
and key business partners are pivotal positions influencing the operations of Bach Hoa
Xanh. Therefore, there needs to be a succession plan in place to ensure that goals are
still achieved even in the absence of individuals occupying these positions.
Senior management and the Board of Directors also need to develop
contingency plans for key positions within the internal control system. Successor
candidates need to be trained and coached to assume roles in the future.
3.1.5. Enforces accountability.
3.1.5.1. Establish accountability through structure, authority, and responsibility.
 Structure:
The Board of Directors needs to affirm that the Chief Executive Officer (CEO)
is the ultimate responsible party for the management, understanding the risks faced by
the unit, and taking responsibility for establishing an internal control system to
mitigate those risks in order to achieve the unit's goals. In turn, the CEO and senior
managers are responsible for designing, implementing, and periodically evaluating the
organizational structure, authority, and responsibilities of each department to establish
accountability for internal control across all levels within the unit.
 Authority:
 Authority within Bach Hoa Xanh is delegated based on roles and
responsibilities defined within the organizational structure. The CEO holds the highest
level of authority and is responsible for overall strategic direction and decision-
making. Authority is further delegated to department heads and managers,
empowering them to make decisions within their areas of expertise. This delegation of
authority is accompanied by accountability, ensuring that decisions align with the
company's objectives and values.
 Responsibility:
Accountability refers to the responsibility of an individual, when entrusted with
internal control, to account for and be responsible for the implementation of internal
controls within their unit or department, thereby helping the organization deal with
risks and achieve its goals. Accountability entails an individual, when entrusted with
internal control, to report and be responsible for the implementation of internal
controls within their unit or department, thereby assisting the organization in
addressing risks and achieving its goals.
The viewpoint of top-level leaders influences the establishment and
implementation of accountability within the organization through:
 Honesty and ethical values, conflict resolution approaches, strict prohibition of
anti-competitive practices
 Management philosophy and leadership style manifested through thoughts,
forms, and different attitudes of managers towards internal control
 Upward communication channels allowing employees to comfortably report
ethical standards violations
 Management's response to behaviors that violate Bach Hoa Xanh's standards.
=> In the Bach Hoa Xanh system, each individual needs to report their work and duties
to the nearest management level and limit excess levels except in significant and
urgent cases.
After aggregating the reports of the individual departments, Bach Hoa Xanh's
manager will send a summary report on the situation of the branch market to the
cluster manager.
3.1.5.2. Establish performance measurement criteria, including both incentivization
and rewards.
The overall performance of Bach Hoa Xanh is greatly influenced by the extent
to which individuals fulfill their duties and how they are rewarded.
Managers and the Board of Directors are responsible for establishing
performance measurement criteria, which should include appropriate incentives and
rewards for various responsibilities at all levels, as well as consider both short-term
and long-term goal attainment. Performance measurement criteria (including both
rewards and disciplinary actions) should encompass both quantitative and qualitative
standards.
The specific amount of rewards at Bach Hoa Xanh depends on various factors,
including:
 Type of reward: Recognition can be either in the form of non-monetary
appreciation or tangible rewards.
 Level of achievement: Exceptional, good, or satisfactory performance in job
tasks.
 Employee's position and tenure: Senior employees and those with longer tenure
tend to receive more recognition. Managers may receive higher rewards
compared to cashiers or warehouse staff.
 Company's business performance: When the company performs well
financially, employees may receive more recognition.
Specific reward amounts include:
 Spot rewards: 500,000 - 10,000,000 VND (depending on the level of
achievement).
 Monthly bonuses: 10% - 30% of the basic salary (based on job performance).
 Quarterly/annual bonuses: 1 - 3 months' salary (depending on the company's
business performance and work achievements).
Additionally, Bach Hoa Xanh offers other forms of recognition such as:
 Gifts: Gifts can be tangible items or gift vouchers.
 Organizing trips: Domestic or international travel opportunities.
=> Establishing evaluation standards requires incentivizing and motivating managers
and employees to fulfill their duties. Increasing salaries or providing bonuses are
common forms of encouragement.
3.1.5.3. Reviewing excessive pressures.
When overly focused on outcomes, especially in the short term, Bach Hoa Xanh may
create pressures within the work environment.
Excessive pressures at Bach Hoa Xanh
 High KPI Pressure:

Bach Hoa Xanh sets high Key Performance Indicator (KPI) targets for
employees to drive revenue and profits. High KPI targets can make employees
feel pressured, stressed, and anxious. To meet KPIs, employees may have to
work overtime, continuously working extra hours, affecting their health and
personal lives.
 Pressure from Management:
Some managers may employ rigid and inflexible management styles, exerting
pressure on employees. Managers frequently monitor, inspect, and evaluate
 employees' KPIs, making them feel monitored and untrusted. Pressure from
management can lead to stress, conflicts, and reduced work efficiency.
 Competitive Pressure:
Due to high competition in the retail industry, Bach Hoa Xanh employees must
compete with each other to achieve KPI targets. Intense competition can lead to
rivalry, loss of cohesion, and affect the overall work environment"
 Customer Pressure:
Customers increasingly demand high-quality products, services, and
competitive prices. Bach Hoa Hoa Xanh employees must frequently interact
with customers, address inquiries, and handle complaints. Customer pressure
can leave employees feeling fatigued, stressed, and affect their service attitude.
 The imbalance: Imbalance between rewarding short-term financial results and
rewarding long-term goals as well as sustainable development objectives.
For example, if the sales department is tasked with increasing sales figures
excessively, which may not align with the overall market or industry
development. This could lead the sales director to manipulate sales figures or
engage in other unlawful behaviors to meet the assigned targets.
=> Moreover, changes in business operations such as strategies, acquisitions, and
mergers also generate pressures. Managers and the Board of Directors need to
understand these pressures and balance them with appropriate messages, incentives,
and rewards.
3.1.5.4. Evaluate work performance, reward and discipline.
- Performance evaluation system at Bach Hoa Xanh:
 Periodic evaluation: Bach Hoa Xanh conducts regular performance evaluations
(typically every 6 months) based on criteria such as:
1. Sales revenue.
2. Profit.
3. Customer satisfaction.
4. Compliance with company regulations.
5. Work attitude.
 Competency assessment: Bach BachHoa Xanh evaluates employees'
competencies through tests, competency assessments, and assessments of
professional skills and knowledge.
 360-degree feedback: Bach Hoa Xanh employs the 360-degree feedback
method to evaluate employees from various perspectives, including peers,
supervisors, and customers.
 The Board of Directors evaluates the performance of the Chief Executive
Officer. -> The Chief Executive Officer assesses the performance of other
senior managers. -> Senior managers, in turn, evaluate the performance of
 middle managers, and this process continues down to lower levels within the
organization.
Finally, the performance of employees is evaluated. The evaluation of
performance as well as reward and disciplinary measures need to be clearly
communicated to employees for understanding and implementation.
- Disciplinary system at Bach Hoa Xanh:
 Minor disciplinary actions:
1. Verbal warning
2. Written warning
 Major disciplinary actions:
1. Salary reduction
2. Demotion
3. Termination of employment
3.2. Risk Assessment.
3.2.1. Bach Hoa Xanh 's overall objective.
Bach Hoa Xanh aims to provide maximum speed and convenience to
customers in their shopping experience by expanding the Bach Hoa Xanh
supermarket system widely across all areas, including rural regions. Bach Hoa
Xanh is continuously striving to bring diversity to product choices, offering
over 12,000 products with various categories, clear origins, reasonable prices,
and transparency.
3.2.2. The objective of over control cash.
The objective of cash control at Bach Hoa Xanh is to ensure that cash is
controlled tightly and used effectively, in order to achieve the company's
operational, financial reporting, and compliance objectives.
Specifically, the cash control objectives at Bach Hoa Xanh include:
Operational objectives:
Ensure that there is enough cash to meet the company's operating needs,
including purchases, salaries, operating expenses, etc. Optimize cash flow and
minimize cash costs.
Financial reporting objectives:
Ensure the accuracy and integrity of cash information on the company's
financial statements. Comply with accounting and auditing regulations related
to cash.
Compliance objectives:
Ensure compliance with relevant legal regulations related to cash, such as
anti-money laundering and anti-corruption regulations, etc.
 3.2.3. Identify and analyze the risks of Bach Hoa Xanh.

Risks Description risks The level of influence Possibility

Increased Intense competition from Loss of market share, High

competition domestic and international revenue, and
retailers such as VinMart, profitability.
Circle K, Shopee, Lazada
could reduce BHX's market
share and profits.

Supply chain Natural disasters, pandemics Decreased sales, Medium

disruptions or trade wars could disrupt the profitability, and cash
supply chain, leading to BHX flow.
out-of-stocks, price increases
and operational challenges.

Employee BHX's high employee Can lead to customer Medium

turnover turnover rate can negatively dissatisfaction,
impact customer service, decreased efficiency,
operational efficiency and and increased training
training costs. costs.

Rising food Fluctuations in prices of Increased costs and Medium

costs agricultural goods increase decreased profitability.
raw material costs when
purchased by BHX.

Table 3.1. Identify and analyze the risks of Bach Hoa Xanh.
3.2.4. Analyze the risks of BHX’s over control cash.
* Collecting money.
 When Bach Hoa Xanh collects money from the customer directly.

Risks Description risks The level of Possibility

influence

Underpayment or Customers underpaying or giving Reduced High

 incorrect change incorrect change to the cashier, revenue.
and vice versa. Increased
costs.
Damage to
brand
reputation.

Cheating cashier The cashier engaging in fraud Reduce actual Medium

assumes both responsibilities of store revenue
collecting payment from Increase costs
customers and reporting the total for the store
daily revenue.
Damage to the
store's brand
reputation

Table 3.2. Analyze the risks of BHX when collects money from the customer.
 When ILA collects customer’s money from the bank.

Risks Description risks The level of Possibility

influence

The system has The payment system of BHX is The customer High
an error and experiencing an error, resulting in does not
cannot see the the inability to display customer receive the
transaction. payment transactions, possibly due purchased
to an internet connection disruption goods or
services.
BHX lost
revenue.

BHX had a A local or entire area power outage The customer Medium
power outage so or BHX's electrical system is does not
it could not unstable, leading to the inability to receive the
make payments make payments by bank card. purchased
via bank. goods or
 services.
BHX lost
revenue.

The customer's The customer's payment The customer Medium

credit card application has a software error or does not
payment the customer's internet system is receive the
application interrupted, leading to an purchased
crashed. unsuccessful transaction. goods or
services.
BHX lost
revenue.

The transfer was The payment transaction by bank The customer Medium
successful but transfer was successful, but BHX's does not
the machine said machine has not received a receive the
it had not been notification from the bank. Because purchased
received. BHX's payment system does not goods or
promptly update information from services.
the bank or the bank's internet BHX lost
connection system is interrupted. revenue.

Table 3.3. Analyze the risks of BHX when collects customer’s money from the
bank.
* Paying money.
 Paying for stationery supplies.

Risks Description risks The level of Possibility

influence

Buying unnecessary Employees may buy stationery Increased High

stationery. that is not necessary for work, or costs
buy stationery at a higher price Harms work
than it actually is. efficiency
Damage to
 brand
reputation

Arbitrary use of Employees can arbitrarily use Increased Medium

stationery tools for stationery tools for personal costs
personal purposes. purposes, or take stationery tools Harms work
to take home. efficiency
Damage to
brand
reputation

Table 3.4. Analyze the risks of BHX when paying for stationery supplies.
 Paying salaries to employees.

Risks Description risks The level of Possibility

influence

Payroll Accountants can calculate the wrong Harm to High

miscalculation salary for employees, such as employee
calculating salary lower than actual rights.
salary, calculating salary incorrectly Damage to
with regulations, or calculating business
salary for bogus employees. reputation.

Arbitrarily Accountants can arbitrarily pay Financial High

paying employees' salaries, such as paying damage to
employees' employees' salaries before they the business.
salaries expire, or paying employees' salaries Harm to
not in accordance with regulations. employee
rights.
Damage to
business
reputation.
 Table 3.5. Analyze the risks of BHX when paying salaries to employees.

 Paying money back to customers.

Risks Description risks The level of Possibility

influence

Paying Employees may pay customers Damage to the High

customers incorrectly, such as paying customers reputation of
incorrectly. a lower amount than the actual the business
amount, or paying customers a higher Financial
amount. money is higher than reality. damage to
businesses
Causing
disputes with
customers

Table 3.6. Analyze the risks of BHX when paying money back to customers.
3.3. Control Activities.
* Collecting money.

 When Bach Hoa Xanh collects money from the customer directly.
Process when Bach Hoa Xanh receives money from customers.
Step 1: Cashier receives orders from customers.
 Figure 3.7. Receives orders from customers.
Step 2: The cashier checks the goods by barcode scanners and confirms the price.

Figure 3.8. Staff use barcode scanners to scan prices.

 Figure 3.9. Cashier order screen.
Step 3: Print invoices and collect money from customers.

Figure 3.10. Collect money from customers.

Figure 3.11. Bill

Step 4: Return excess money to customers.
Step 5: Store receipts and cash in the cash drawer.
Step 6: Update payment information on the system.
 When Bach Hoa Xanh collects customer’s money from the bank.
 Step 1: Customers make bank transfers or pay by credit card. (If using a credit card,
the payoo card machine will be used to swipe the card and then the customer will
enter the PIN code).

Figure 3.12. Payoo card machine.

Step 2: The bank or intermediary payment organization processes the transaction and
sends notification of successful/failed transaction to Bach Hoa Xanh.
Step 3: Bach Hoa Xanh compares transaction information with customer orders.
Step 4: If the information matches, Bach Hoa Xanh confirms successful payment and
processes the order.
* Paying money.

 Paying for stationery supplies.

Step 1: Send the order to the accounting department.
 The employee who needs to purchase makes a detailed purchase order for the
stationery items to be purchased, quantity, unit price and estimated total value.
 The order includes supplier information, expected delivery time and intended use
of the stationery.
 Check the accuracy of the information before sending.
Step 2: The accounting department reviews the order and the estimated amount.
 The accountant checks whether the order is within the budget allocated for
stationery.
 Confirm the reasonableness of the proposed price, quantity and supplier.
 Check the purchase history with that supplier to evaluate the reputation and
quality of the product.
Step 3: Receive invoice from supplier.
 After delivery, the supplier will send an invoice to Bach Hoa Xanh.
 The invoice must clearly show information such as business name, address, tax
code, and contact information.
  Details of items, quantity, unit price, VAT (if any) and total payment value.
Step 4: Carefully check invoices and orders.
 The accounting department compares information on invoices with orders in
terms of items, quantities, and prices.
 Check the accuracy of calculations and VAT (if any).
 Make sure the invoice has been signed and stamped by the supplier.
Step 5: Pay money to the supplier.
 Based on the inspection, the accountant prepares a payment slip and sends it to
the level for payment approval.
 Pay the supplier according to the agreed method (cash, bank transfer,...)
 Maintain payment records including invoices, payment slips, and payment
documents.
 Paying salaries to employees.
Step 1: Human resources department prepares payroll.
 The human resources department collects timekeeping data, overtime notices,
and allowances.
 Calculate salary, personal income tax and deductions according to law.
 Check and review information on the payroll before sending.
Step 2: Director approves salary schedule.
 The Director reviews and approves the total salary payment amount on the
payroll.
 Confirm accuracy and compliance with Bach Hoa Xanh's human resources
policies.
Step 3: The human resources department sends the payroll to accounting.
 Transfer approved payroll to the accounting department to make payments.
 Provide any additional supporting documentation related to payroll if necessary.
Step 4: The accountant checks the payroll.
 The accountant reviews information on the payroll and compares it with
timekeeping and allowance data.
 Ensure accuracy of calculations and deductions on payroll.
 Contact human resources to resolve any errors if discovered.
Step 5: The accountant prepares the salary slip.
 Based on the checked payroll, the accountant prepares a general salary slip.
 Payment slips show the total amount to be paid to all employees.
Step 6: Accountant makes salary payment.
 Pay salaries to employees according to the agreed method (transfer, cash,...)
  Check your account information and amount before making a transaction.
 Maintain payment records, including payment slips and employee salary
confirmation receipts.
Step 7: Accountants update salary payment information into the system.
 Enter payroll data into accounting and human resources systems for storage and
tracking.
 Update salary payment history of each employee.
 Paying money back to customers.
Step 1: Customers contact Bach Hoa Xanh to request a refund.
 Customers can contact Bach Hoa Xanh through the following channels:
 Call the customer care hotline 1900.1908.
 Message via Bach Hoa Xanh's official fanpage.
 Go directly to the nearest Bach Hoa Xanh store.
 When contacting, customers need to provide the following information:
 Full name, phone number, and address of the customer.
 Order code or product/service information to be returned.
 Reason for return.
Step 2: Bach Hoa Xanh receives and processes customer requests.
 After receiving the customer's request, Bach Hoa Xanh staff will verify the
information and process the request.
 If the customer's request is valid, Bach Hoa Xanh will ask the customer to
provide necessary documents, such as:
 Receipt.
 Photo of the product/service to be returned.
 Minutes recording product/service status (if any).
Step 3: Bach Hoa Xanh verifies information and requires customers to provide
necessary documents.
After receiving the necessary documents, Bach Hoa Xanh staff will verify the
information. If the information is valid, Bach Hoa Xanh will complete the procedure to
return money to the customer.
Step 4: Bach Hoa Xanh completes the procedure to return money to customers.
Depending on the payment method the customer used when purchasing, Bach
Hoa Xanh will have the following return methods:
 Payment in cash: Bach Hoa Xanh will return cash to the customer at the store
where the customer made the purchase.
 Payment by credit card: Bach Hoa Xanh will refund the customer's credit card.
 Payment via e-wallet: Bach Hoa Xanh will refund money to the customer's e-
wallet.
Step 5: Bach Hoa Xanh updates refund information into the system.
After completing the procedure to return money to customers, Bach Hoa Xanh
staff will update return information into the system for monitoring and management.
Building a clear, transparent customer refund process and compliance with
current regulations will help Bach Hoa Xanh ensure customers' rights and enhance the
business's reputation.
3.4. Information and Communication.
3.4.1. Uses relevant information.
3.4.1.1. Determine information requirements, balance related benefits and costs.
The management of Bach Hoa Xanh identifies specific information requirements
tailored to each management level in accordance with specific standards.

Department of Information used in Bach Hoa Xanh

Internal
Control

Controlled Bach Hoa Xanh issues a Code of Conduct not only at all levels
environment within the unit but also to customers. As an executive or manager,
we are expected to not only understand and comply with the Code
of Conduct but also to perform as a leader and role model.

Risk - Bach Hoa Xanh communicates directly with customers.

assessment - Collect information from the sales department.
- Contract, agreement to buy and sell goods between two parties.
To assess the risk of non-compliance with regulations on sales and
collection, as well as keeping customer information confidential
on quantity, transaction value and other content, and then use this
information to assess risks.

Control - Bach Hoa Xanh collects information from sales staff/distributors.

operations - Online customer support and hotline. Coordinate various types of
control activities to prevent operations that do not comply with the
company's sales process, including: Approval, Verification,
Physical Control, Permanent Data Control, Alignment, Review
control.
 Monitor • Bach Hoa Xanh conducts taste surveys inside and outside the
company
• Supervision by internal auditors and other independent
individuals. To analyze and evaluate the quality of the company's
internal control.

Table 3.7. Determining information requirements in Bach Hoa Xanh.

3.4.1.2. Collect data sources inside and outside the unit.
Information can be obtained from various sources and in different forms. Managers
need to select the most appropriate and useful sources of information that align with
the goals, business model, and operations of the organization.
* Internal data sources.
Internal data sources: include Employees, Products.
Email exchanges: Company dynamics, tasks requiring resolution, handling
Bạch Hoa Xanh’s email: lienhe@bachhoaxanh.com.

Figure 3.13. Bach Hoa Xanh's contact information.

 Reports on quantity and quality of raw materials:
Selecting high-quality raw materials, emphasizing sourcing from natural,
environmentally friendly origins, minimizing or avoiding the use of preservatives.
- Bach Hoa Xanh currently has over 10,000 suppliers, including: Domestic
suppliers: Providing products such as fruits, vegetables, meat, fish, eggs, milk, rice,
instant noodles, etc. International suppliers: Supplying imported fruits, foreign milk,
international confectionery, etc.
- Quality of clean vegetables at Bach Hoa Xanh: Bach Hoa Xanh (BHX), a grocery
retailer owned by Vietnam’s Mobile World Investment, has started selling safe
vegetables from 4K Farm, a member of Mobile World. 4K Farm’s vegetables are fully
traceable with information about the farmer’s name, seed type, sowing date and
harvest date. Traceability is important to guarantee food safety. 4K Farm’s vegetables
adhere to the “4 No” policies of zero pesticide, GMO, preservatives and growth
substances, which are important promises deliver safe vegetables to end consumers.
The fresh vegetables – Chinese mustard, bok choy and young mustard greens – can be
purchased in store and

Figure 3.14. Quality of clean vegetables at Bach Hoa Xanh according to 4k

standards.
 Production department report.
 Regarding the number of completed products: Bach Hoa Xanh currently
offers over 2,000 items, including fresh food, processed food, household items,
and consumer goods. The average monthly revenue of Bach Hoa Xanh exceeds
2,000 billion VND. The number of completed products each month depends on
various factors such as market demand, promotional programs, etc. Fresh food
production department: Capable of supplying over 100 tons of fresh food per
day. Processed food production department: Capable of supplying over 50 tons
of processed food per day.
  Scale of the main production workshops: Currently, Bach Hoa Xanh operates
2 main production workshops: Fresh food production workshop: Located in Tan
Binh Industrial Park, Ho Chi Minh City, with an area of 20,000 square meters.
This workshop specializes in producing fresh food products such as pork, beef,
chicken, fish, vegetables, and fruits. Processed food production workshop:
Located in Long Hau Industrial Park, Long An province, with an area of 30,000
square meters. This workshop specializes in producing processed food products
such as sausage, hotdog, and cured meat products.
 Employee feedback survey results: All suggestions and concerns from employees
are encouraged to be shared and addressed through various channels: suggestion
boxes, emails, or daily exchanges with supervisors or the Labor Union. Monthly
meetings with Labor Union representatives or annual Workers' Conferences are
organized to discuss these suggestions/complaints. They are documented in the Labor
Dialogue Minutes and resolved as soon as possible.
* External data source:
External data sources include Customers, Partners, Retailers, Competitors, and the
Environment.
- Product research reports: Disclose information about products, various types of
safety certification for consumers of all ages.
- Trade shows: Aimed at promoting and introducing product lines, new trends to
consumers.

Figure 3.15. Bach Hoa Xanh opens large-scale shopping events every year to
introduce new products to consumers.
- Social networking sites and newspapers: Social networking sites like google and
tiktok mention Bach Hoa Xanh a lot, and under Bach Hoa Xanh's homepage, there are
comment sections for customers to give their feedback and feelings about Bach Hoa
Xanh.

Figure 3.16. Customer feedback through the comments section of

Bach Hoa Xanh's homepage.
3.4.1.3. Process data into information.
- Bach Hoa Xanh needs to collect and process data from both internal and external
sources into appropriate information to meet the information needs of the unit.
Depending on the characteristics of the unit and information requirements, the
information systems used will vary, ranging from simple to complex.
 The information system at Bach Hoa Xanh includes content related to: email,
internal network systems, software, telephones, internet access, fax machines,
personal computers, and other storage devices.
 Bach Hoa Xanh employs a modern information system to manage its business
operations, including:
- Point of Sale (POS) system: Facilitates sales management, payment
processing, and invoicing.
- MWG app: Used to notify employees of iìnormation
Figure 3.17. MWG app.
 - Customer Relationship Management (CRM) system: Manages customer
information, promotional programs, and customer care.
- Financial Accounting System (SAP): Manages financial activities, accounting,
and taxation.
3.4.1.4. Ensuring information quality.
The quality of information will impact the effectiveness of the internal control
system. The organization needs to issue information management policies, specifying
the person responsible for the quality of information within the organization. Quality
information should ensure the following attributes:

Attribute Explanation

Ease of Information must be readily available to users when needed.

access - Example: Bach Hoa Xanh has communication channels (Facebook,
TikTok, etc.) and a dedicated email for users to easily access and
provide feedback.

Accuracy Information must be precise and comprehensive.

- Example: Bach Hoa Xanh always needs to update accurately and
thoroughly to disclose the most precise information to customers.

Up-to-date Information must be current, reflecting the present situation.

- Example: Bach Hoa Xanh always needs to update the situation both
within and outside the company to keep up with trends and address
emerging issues.

Security Sensitive information is only accessible by authorized personnel.

Storage Information at Bach Hoa Xanh is stored for a sufficient duration to

serve the needs of both internal and external stakeholders.

Sufficient Information must be detailed enough to meet the requirements of the

detail user.
- For example, Bach Hoa Xanh always has reports that detail terms
and items such as financial reports, annual reports, etc.
 Timely Information stored in the system must ensure timely responsiveness
to requests.

Authentic Information must originate from reliable sources, be processed

according to proper procedures, and reflect real-world events.

Verifiable There must be evidence to verify information when needed, and

someone should be accountable for the quality of the information.

Table 3.8. Attributes that Bach Hoa Xanh needs to ensure to get quality
information.
3.4.2. Communication internally.
* Communication to employees to operate the internal control system
Bach Hoa Xanh uses a range of communication channels to ensure effective internal
communication on cash control. These include:
 Use phone:

Figure 3.18. Phone number.

- Internal messaging system: Internal messaging system allows Bach Hoa Xanh to
quickly notify employees of important information related to cash control: revenue and
expenditure, and instructions for handling emerging situations,...
- Internal bulletin board: Place an internal bulletin board in visible locations in the
store to announce cash management regulations, and instructions on how to use POS
machines.
 Figure 3.19. Bach Hoa Xanh bulletin board.
- Email: Use email to send internal information about cash control to each employee.
- Plenary conferences: Bach Hoa Xanh regularly organizes plenary conferences to
inform employees about our cash control situation and share effective cash
management experiences.
- Symposium: Organize seminars to train employees on knowledge related to cash
control, such as cash receipt and payment skills.

Figure 3.20. Bach Hoa Xanh’s staff take part in training.

Some specific examples of internal communication activities:
- Monthly "Excellent Employee" contest: This contest rewards employees with good
performance in cash control.
- "Cash Management Tips" program to share effective money management
experiences among employees.
- "Discussion with the Board of Directors" program to answer employees' questions
about issues related to cash control.
* Communication to Board of Management.
- Periodic financial reports should be provided to the board of directors on a monthly,
quarterly, and yearly basis. These reports should cover revenue, profits, operating
expenses, cash flow, and assets and liabilities. Any large or unusual expenditures
should also be explained, and actual results should be compared with the proposed
budget.
- In addition, internal control activities should also be reported directly to the Board of
Management, including information about control policies and procedures, their
implementation, internal audit results, and any internal control issues and corrective
measures.
- To facilitate effective communication, Bach Hoa Xanh may use various methods,
such as direct presentations to the board of directors, an enterprise management system
(ERP) to track and manage finances, and project management software to monitor the
progress and effectiveness of projects.
3.4.3. Communication externally.
- Providing periodic financial reports to relevant parties such as investors, banks, and
tax authorities on a monthly, quarterly, and yearly basis. Additionally, the report
should compare actual results with the proposed budget.
- Publicizing information about the financial situation and operations of the enterprise
on the website and annual report. Businesses should also provide information to the
media upon request.
 Figure 3.21. Bach Hoa Xanh’s media channels.
- Organizing meetings with investors, banks, and suppliers to inform them about the
financial situation and operations of the business. During these meetings, businesses
should answer questions and address any concerns from stakeholders.
- Using communication tools such as social networks and email marketing to
communicate about business activities. Businesses should share success stories,
new projects, and other information that can increase the trust of stakeholders.

Figure 3.22. Web bachhoaxanh.com.

 Figure 3.23. Fanpage Bach Hoa Xanh on Facebook.

3.5. Monitoring.
Bach Hoa Xanh uses both ongoing and separate evaluations to properly control cash:
Ongoing evaluations
 Install camera system:
 At the cash register: Ensure cashiers are following proper procedures for
receiving money, making payments, and returning change. Detect fraudulent
activities like taking money from customers, not recording transactions, or
recording incorrect amounts.
 In the warehouse: Monitor the movement of goods in and out to ensure they
are carefully inspected before being shipped and received.
 In the sales area: Observe customer behavior to ensure they are not engaging
in fraudulent activities like stealing merchandise or making unreasonable
returns.
 Unscheduled fund checks: Perform surprise fund checks at cashier counters to
ensure cash amounts match records. Check invoices and receipts to verify the
accuracy of transactions. Analyze sales data to detect anomalies.
 Sales Data Analysis: The manager can use software to analyze sales data and
detect abnormal transactions; compare the actual sales revenue with the
expected revenue; identify items with high loss rates to investigate the cause,...
Seperate evaluations

- Bach Hoa Xanh has an auditing system in place to regularly monitor its
financial operations.The internal audit department of Bach Hoa Xanh conducts
quarterly evaluations to assess the effectiveness of the internal control system
regarding cash receipt and payment processes and to detect and prevent errors or fraud.
Additionally, an independent auditing company hired by Bach Hoa Xanh conducts an
annual evaluation to ensure the accuracy and transparency of the financial reports and
to ensure compliance with accounting and tax regulations.The manager will guide
employees in periodically self-assessing the control environment and procedures
related to their operations. In addition, Bach Hoa Xanh also uses tools to support cash
control periodically such as sales management software, surveillance cameras, and
automatic reporting systems.
 CHAPTER 04: CONCLUSION AND RECOMMENDATION
4.1. Strengths of the internal control system.

Components Strengths

Control environment - Detailed rules for manager, staff.

- Full of policies to protect the staff and the welfare of staff.

- Clear standards of staff behavior, appearance, and uniforms.

Risk assessment - Periodically adjust the policies and regulations.

- Assess the risks timely, giving the right risk management

procedures.
Control Activities COLLECT MONEY DIRECTLY:

- The FO team has to update and charge the money to staff's

ID, so everyone else. The department can follow and be
updated with the staff’s condition.

- The accounting department will compare the revenue

entered on the system and invoices and documents.

COLLECT MONEY FROM THE BANK:

- Always ask the customer to capture the evidence that shows

that they have transferred the money successfully.

- BHX has a system to identify money transferred from

customers successfully received

- Separate duty between the bank reconciliation department

and the one who receives the transaction information from
the customer.

PAY THE MONEY:

- For stationery

+ Employee in charge must send the purchase order to the

accounting department for approval first.

+ If the quantity and total amount of money match with the

purchase order at the beginning month, the Accounting
Department will approve the payment.

- For the salary:

+ Salary is counted when the employee's name appears on the

schedule module in which the employee registers.

PAY THE MONEY BACK TO CUSTOMER:

 - It requires customers to provide all reasonable evidence
before they can get the approval from many departments to
receive the feedback.

Information & - The customers can easily contact the business.

Communication

Monitoring - Pay attention to controlling all kinds of bookkeeping to limit

fraud in the process of controlling money as well as accepting
bribes from accountants.

Table 4.1. Strengths of the internal control system in Bach Hoa Xanh.
4.2. Weaknesses of the internal control system.

Components Weaknesses

Control environment - BHX has set the tone of the top, however there is only one
board member which leads to lack of authorization.

Risk assessment - BHX can still detect, prevent cash embezzlement.

- BHX still can't maintain the satisfaction of the customers.

Control Activities - FO handles too many duties.

- The accounting department does not check whether the

price stated in the purchase order is the same as the price
quoted from the supplier or not.

- The manager can not control whether they actually did it or

not.

Information & - The employee might not collect the whole feedback of the
Communication customers.

Monitoring - There is no effective measurement to process and check the

 correctness of information from employees.

Table 4.2. Weaknesses of the internal control system in Bach Hoa Xanh.
4.3. Recommendations to improve the internal control system.

Components Suggestion

Control environment - Arrange staff for each position in each shift

- Clear division of work for each department

Risk assessment - The company should recruit more employees who will be
responsible for double checking the cash from the bank.

Control Activities - There should be a separate cashier.

- The accounting department should check whether such an

order quantity is reasonable or not, also they should ask for a
quotation from the supplier.

Information & - The assistants have to write down all the content of the call
Communication and upload it to the system.

Monitoring - Using ERP software plays an important role in regular

monitoring, ensuring objectivity for the company and less
mistakes.

Table 4.3. Recommendations to improve the internal control system.

REFERENCES