Page 553 - ISC PROCEEDINGS 21.4

salaries can be paid fixed or based on transportation revenue. For some ride-hailing
companies, there are no direct labor costs due to their specific characteristics.
(3) General production costs: Depreciation of transport vehicles; costs of support
staff (cleaning, technical, maintenance); maintenance, repair, parking, and inspection
costs; tire allocation costs (usually over 12 months); traffic fees, road tolls, tools,
equipment, etc.
- Production cost documentation and accounting shall be carried out in accordance
with current regulations within the IT environment.
b. Control objectives include information, compliance, and operations:
- Operations: Costs within the IT environment are calculated fully and promptly for
each cost object and in line with the company's objectives, resulting in cost savings.
- Information objective: to fully, promptly, and accurately record accounting
transactions related to production costs, and to present them truthfully and fairly in the
relevant financial statements.
- Compliance objective: to comply with company regulations and relevant legal
provisions within the IT environment such as the Law on the Capital City, the Law on Road
Traffic, etc.
c. Potential risks and fraud
- The price of raw materials has increased too rapidly compared to the forecast and
plan, there are no appropriate material consumption standards, and there is a shortage of
fuel for operating vehicles…
- Labor costs are not commensurate with the quality of service within the IT
environment. (either too low or too high).
- Other costs arise from risks such as traffic accidents causing vehicle damage due
to unfavorable traffic conditions like poor roads, traffic congestion, bad weather affecting
visibility and traction, and human factors such as driver fatigue, lack of experience, or
violation of safety rules. Delays in passenger transport due to traffic congestion or
adverse weather conditions, vehicle breakdowns, or shortages of operating personnel.
There are also legal and regulatory compliance risks related to non-compliance with
regulations regarding the number of passengers transported, traffic safety, etc.
- The use of company resources for personal purposes, colluding with service
providers to inflate prices…have also happened.
- Risks from the IT environment include viruses, software errors, information
management issues, security breaches, etc.
d. Control procedures
- General control aims to ensure data and program security related to production
costs, preventing risks such as data loss, data modification, or information leakage.
General control is implemented in many aspects, including assignment of responsibilities,
control of information processing, and independent verification of implementation.
Assignment of responsibilities includes delegating tasks based on the principle that those
performing cost-related tasks do not perform accounting or management tasks.
Accordingly, businesses need to organize the operation of vehicles independently from
administrative departments; the cost approval function must be separate from the
function of providing transportation services; the supplier selection function must be
independent from the purchasing and service function; accountants should not also hold
asset management positions; and the payroll and bonus calculation function must be
separate from the payroll approval function. Information processing control must be

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