VINAMILK

Relevant
No. Understanding Business Risk Inherent Risk Management
Assertion
Fluctuations in raw
Risk of inventory
The dairy industry is material costs
valuation and
heavily affected by (especially Accuracy &
1 cost of goods
imported raw imported milk Valuation
sold
material prices powder) can reduce
misstatement
profit margins
Foreign exchange Exchange rate
Vinamilk exports to
risk due to revenue fluctuations may Accuracy &
2 multiple international
in foreign impact revenue Completeness
markets
currencies and profitability
The domestic market Revenue may be
is highly competitive Intense competition overstated to
Occurrence &
3 with TH True Milk, may reduce market maintain
Cut-off
Nestlé, and Mộc share and revenue financial
Châu Milk performance
Product quality
Risk of litigation
Dairy products are issues may cause
or provisions for Completeness
4 sensitive to food significant financial
compensation & Presentation
safety issues and reputational
claims
losses
Risk of asset
Risk of asset
Expanding large- valuation
management and Valuation &
5 scale dairy farms is a misstatement or
investment Completeness
key strategy improper
efficiency
depreciation
Vinamilk has a Risk of inventory Inventory may be
Existence &
6 widespread loss in the supply misreported or
Cut-off
distribution network chain subject to fraud
7 Vinamilk’s pricing Price control may Revenue may be Accuracy &
 adjusted to
policy is regulated by
impact profitability comply with Presentation
the government
regulations
Corporate
Changes in tax income tax
Compliance risks Completeness
8 policies may affect provisions may
may increase costs & Valuation
profitability be misstated or
omitted
Risk of
Internal fraud or Employees may
fraudulent
financial manipulate Occurrence &
9 revenue or
misstatements pose financial reports to Completeness
expense
risks meet KPIs
recognition
Risks related to
Digital technology is
Cybersecurity risks data security and
being applied in Accuracy &
10 and customer data financial
management and Presentation
breaches information
sales
accuracy