Auditing services in Vietnam
Vinasc is known as an entity specializing in providing auditing services for enterprises with foreign investment. Our strengths lie in the team of professional auditors with experience and linguistic ability to offer best services to customers. We have experience and thorough understanding of the demand of foreign enterprises when operating in Vietnam.
Vinasc’s objectives are to help customers comply with the laws, at the same time, to provide customers with independent, objective evaluation for managerial purposes.
Pursuant to Clause 1, Article 37, Law on Audit no. 67/2011, the subjects of financial statement audit include:
- Enterprises with foreign investment;
- Credit institutions established and operating under the Law on Credit Institutions;
- Financial institutions, insurance enterprises, insurance brokerage firms.
- Public companies, issuers, and securities trading organizations.
Apart from using auditing services as mandated, managers, investors as well as authorities are demanding and highly expecting integrity and transparency in their financial statements.
To satisfy such demand, Vinasc has invested in service quality, auditors team with experience and expertise to serve our customers. After many years of operation, we have gained trust and the accompaniment of various enterprises, investors from different countries.
Belows are the important content relating to Vinasc’s auditing services:
When do foreign enterprises in Vietnam need our auditing services?
- At the end of the accounting period, before filing tax returns enterprises must have their financial statement audited and attach the audit result when submitting annual tax dossiers;
- Enterprises with mother companies abroad listed on stock exchanges;
- Audit for intrinsic management purposes.
Our auditing procedure:
- Investigating auditing customers: operation environment, accounting policies and business cycle;
- Initial risk evaluation: preliminary analysis of financial statement, assessing internal control system and fraud risks at the audited entities;
- Planning for auditing: determine the significance and sample selecting methods;
- Conducting the auditing: witnessing the checking of cash, inventories, fixed assets, sending mails to confirm the important segments, checking documents and accounting records;
- Compiling, concluding and filing the statement: discussing with customers about the shortcomings and limitations, especially the matters relating to internal control, optimizing the efficiency in customers’ business operation, giving audit opinions and publishing auditor’s reports.
- IFRS auditing: converting financial statements to IFRS standards (International Financial Reporting Standards);
- Surveying auditing service quality is conducted annually to improve the expertise of the auditors team.
Why choosing auditing services at Vinasc Audit Company?
- Auditing services fees: are guaranteed to be reasonable depending on the scale, business line, production characteristics of the customers;
- Searching for tax risks: timely identification and correction of the mistakes in financial statement, tax reports;
- Evaluating internal control system: Vinasc provides solutions aiding effective internal control;
- Auditing services quality: enterprises can be confident to publish audited financial statements, gain trust from investors, customers as well as authorities.
- Vinasc prioritizes credibility and respect our customers by providing transparent, compliant, reasonable and timely consulting services.
How to cooperate and effectively utilize auditing services?
For FDI enterprises obliged to have audited financial statements, many enterprises only see audit as a required procedure without correctly assessing the value, or neglect the discussion, sharing and acquiring information from the auditing period. Reality shows that most investors, foreign business owners do not directly work with and receive information from auditors. Therefore, consulting mails, important content for discussion may not arrive at the hands of decision-makers.
From such reality, to effectively utilize auditing services, enterprises should concern the following matters:
- Correctly assessing the roles of auditing services and the auditors when cooperating
- Choosing the enterprises with sufficient linguistic skills to communicate with decision-makers.
- Besides audit reports, enterprises need to carefully consider managerial mails privately sent by auditors.
- To have good auditor’s opinions that are beneficial to enterprises, then apart from fulfilling daily accounting jobs,
enterprises need to complete these following procedures:
- Checking fixed assets periodically or at the end of the year;
- Checking inventories periodically or at the end of the year;
- Checking cash balance periodically or at the end of the year;
- Regular collating of receivables, payables. Especially, confirmation mails from partners after collation are required at the end of the financial statement period.
- Collating, confirming other obligations such as loans, prepayments, capital contribution…
Enterprises need to take notice of the regulations on administrative penalties for not auditing financial statements at the end of the fiscal year.
Pursuant to Clause 3, Article 53, Decree no. 41/2018/ND-CP dated 12/03/2018, regulations on administrative violations in accounting and audit, specifically:
“A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed on audited units for failure to undergo compulsory audit for financial statements, settlement reports of project completion, consolidated and general financial statements, and other auditing works as specified in regulations of the Law on Independent Audit and other relevant laws.”.
If the enterprises did have their financial statements audited but not release as required when finalizing tax, then pursuant to Point d, Clause 2, Article 12, Decree 41/2018, enterprises will receive administrative fines from 10 million ND to 20 million VND and compelled to resolve.
Please contact us for timely consultation and support.