Pursuant to Clause 1, Article 37, Law on Audit No. 67/2011, enterprises and organizations whose annual financial statements have to be audited by auditing firms or branches of foreign auditing firms in Vietnam include:
a) Enterprises with foreign investment;
b) Credit institutions established and operating under the Law on Credit Institutions;
c) Financial institutions, insurance enterprises, insurance brokerage firms.
d) Public companies, issuers, and securities trading organizations.
Vinasc is known as an organization specializing in providing auditing services for enterprises with foreign investment. Our strength lies in our professional auditor team who are experienced and competent in foreign languages to serve our customers. We thoroughly understand the demand and desire of foreign enterprises while operating in Vietnam.
Vinasc’s goal is to help our customers comply with the laws and provide our clients with impartial, objective evaluation of management vision.
AUDITING FINANCIAL REPORTING
Every year, FDI enterprises need to audit their financial reporting as required by laws to provide a basis for tax finalization. This is mandatory, if not comply, then pursuant to Clause 2, Article 12, Decree 41/2018, enterprises will be penalized at a range from 10.000.000 VND to 20.000.000 VND and compelled to solve the issues.
In addition, audited financial reporting of FDI enterprises are required in most of administrative procedure relating to the government, such as: Department of Planning and Investment, tax authorities, business certificates issuers.
Regarding capital withdrawal procedure, profit remittance abroad, audited financial reporting is also considered as a compulsory document at tax authorities and banks.
AUDITING FOR TAX PURPOSES
Auditing for tax purposes is not mandatory for enterprises, in general and for FDI enterprises, in particular. However, most FDI enterprises in Vietnam deeply care about this service.
Tax inspection from tax authorities has always been a concern for enterprises. This is an important matter during operation, on the one hand, it incurs impending legal and compliance risks, on the other hand, creates financial risks in terms of penalties and remedies.
With this service, we will audit to consult customers about the risks, remedies and cautions for the future. Methods of auditing includes choosing templates based on the evaluation and agreement between both parties. This method does not mean we would guarantee accounting review of 100% documents like in our accounting review service.
Compliance audit for enterprises is not mandated by government’s laws. However, the benefits from regular compliance audit will help enterprises mitigate and identify the risks of business management.
During operation, enterprises must establish operation protocol for each department such as Human Resource, Procurement, Sales, Receivables, Production… Ensuring compliance of each department is difficult for business managers.
Therefore, enterprises often collaborate and utilize a third party, usually auditors to check and evaluate all facets of compliance and the effectiveness of existing protocol.
By compliance audit, enterprises can make timely decisions and use this as a foundation to adjust the process accordingly to the reality of their businesses.
WHY CHOOSING OUR AUDITING SERVICES?
- Vinasc is a compliant unit and is certified to be eligible to provide auditing services to enterprises by the government.
- We have experience in auditing for FDI enterprises with a competent, multilingual, professional team
- Vinasc Group has a chain of services to support enterprises. Therefore, our service outcomes always derive at a full business picture for enterprises.
Our service fee is considered to be the most reasonable given the service quality and we have been trusted by several partners.
Please contact us to receive more consultation and share your stories.
Fundamentally, financial reporting belongs to enterprises’ duties and is generated by enterprises. Auditors only base on their own auditing methods to evaluate the information on the financial reports. This means that all the data on the financial reports must be calculated, generated, declared and explained to tax authorities by the auditors at the unit enterprises.
However, if the enterprise and the auditing company has additional agreement not stated in the contract but still legal, then both parties shall require and perform their rights and duties. Hence, auditors may conduct their duties if agreed by the contract.
For FDI enterprises who are compelled to auditing, a lot of enterprises only consider auditing as a required procedure without fully assessing its value or neglect the exchange of information from each auditing period. Reality shows that most foreign investors, business owners do not directly work with and receive information from the auditors. Therefore, consulting mails and important discussion content may not reach the targeted receivers to make wise decisions.
From such reality, to effectively utilize auditing services, enterprises should consider the following matters:
- Correctly evaluating the roles of auditing services and the auditors when cooperating.
- Choosing the companies capable of using foreign languages to communicate with decision-makers.
- Apart from Audit report, enterprises should also seriously consider management mails sent by the auditors.
This matter stems from the auditing methods regulated by the laws, which states that auditors can choose their template to audit and base on that chosen template to give auditor’s opinions.
This means that based on the laws, auditors do not have the duty to check 100% invoices, records or arising economic operation of enterprises.
However, during inspection, examination from tax authorities, the standard auditing method is to check 100% invoices, records or arising economic operation during the auditing period.
From our perspective, to minimize the above-mentioned risks, enterprises should clearly identify the follows when choosing the services:
- If enterprises want to hire checking services for mitigation of tax risks, then they should choose tax review services (belonging to 100% accounting review service)
- If enterprises want to use auditing services simultaneously, then they should evaluate whether the auditor or the auditing unit have enough experience in tax consulting.
For regular auditing services at Vinasc Group, Vietnamese standard and accounting mode is applied. However, we still have additional services called Converting financial reports to IFRS if required by our customers.
Enterprises are required by the laws to record their inventories and properties periodically or annually. So, what roles do auditing services play in the process of stocktaking?
According to the law on audit, auditors, personnel at auditing companies only observe the process of stocktaking performed by the employees of the enterprise as a base for giving their opinions. This means auditors do not have the duty to perform stocktaking on behalf of the enterprise.
Protecting customers’ information is our principle of operation.
Our team always organizes logical working protocol to deliver the progress as guaranteed with customers.
Service fees are built upon the values we bring to our customers.