Why Do Businesses Need Audit Services?
According to Clause 1, Article 37 of the Audit Law No. 67/2011, businesses in the following groups are required to have their financial statements audited:
- Foreign-invested enterprises (FDI).
- Credit and financial institutions, insurance businesses, and insurance brokers.
- Public companies, issuers, and securities trading organizations.
Audit services not only help businesses comply with legal regulations but also provide practical value by optimizing management processes, minimizing risks, and enhancing credibility with partners and regulatory agencies.
Financial Statement Audit Services
Annual financial statement audits are mandatory for FDI enterprises and serve as the basis for the following:
- Tax Finalization: Ensures compliance with legal requirements, avoiding administrative penalties ranging from 10,000,000 to 20,000,000 VND (as stipulated in Point D, Clause 2, Article 12 of Decree No. 41/2018).
- Administrative Procedures: Audited financial statements are essential when working with agencies such as the Department of Planning and Investment, tax authorities, and business licensing organizations.
- Capital Withdrawal and Profit Remittance: These documents are indispensable for dealings with tax authorities and banks.
Tax Audit Services
In addition to financial statement audits, Vinasc provides specialized tax audit services to help FDI businesses manage tax-related risks effectively.
Why Do Businesses Need Tax Audits?
- Minimize Legal Risks: Ensures compliance with regulations to avoid unnecessary penalties.
- Optimize Costs: Identifies financial risks and provides effective solutions.
- Future Preparedness: Offers warnings and strategic solutions for sustainable operations.
Our tax audit services employ flexible sampling methods, designed based on risk assessments and specific agreements with each client. This ensures high efficiency while optimizing costs for businesses.
Vinasc – Supporting the Growth of FDI Businesses
Vinasc is proud to be a trusted provider of audit services, especially for foreign-invested enterprises. With over 10 years of experience, we have a team of professional auditors fluent in multiple languages, ready to comprehensively support our clients in Vietnam’s multinational business environment.
Benefits of Choosing Vinasc
- Legal Compliance: We ensure your business meets all legal requirements, from tax finalization to administrative procedures.
- Objective Evaluation: Our independent and transparent audit reports provide an overview for effective management purposes.
- Understanding Client Needs: Vinasc always puts itself in the position of FDI businesses, delivering the most practical and optimal solutions.
Vinasc’s Commitment
We are more than just an audit firm – we are a reliable partner dedicated to helping FDI businesses achieve sustainable growth in Vietnam. Let Vinasc assist you, from ensuring legal compliance to optimizing business performance.
FAQ - Auditing Services
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.
Auditing Services
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.