DO COMPANIES WITH FOREIGN INVESTED CAPITAL HAVE TO BE AUDITED?

The 2011 Law on Independent Auditing stipulates that mandatory auditing is auditing of annual financial statements, settlement reports and other financial information to contribute to publicity and transparency while also detecting and preventing fraud. prevent violations of the law.

The State encourages businesses and organizations to perform audit activities before submitting to state agencies. However, for some businesses with specific characteristics, the State requires these businesses and organizations to be audited when submitting financial reports and when making public financial statements, there must be an audit report. attached math.

The Government issued Decree 17/2012/ND-CP guiding the Law on Independent Auditing, with regulations on businesses and organizations whose annual financial statements are required by law to be audited and paid for by the enterprise. Auditing branches of foreign auditing firms in Vietnam include:

“- Enterprises with foreign investment capital;

• Financial institutions, insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, branches of foreign non-life insurance enterprises.
• Credit institutions established and operating under the Law on Credit Institutions, including foreign bank branches in Vietnam;
• Public companies, issuing organizations and securities trading organizations.”
• In addition, businesses and organizations must be audited by auditing firms and branches of foreign auditing firms in Vietnam, including:
• Enterprises and organizations in which state-owned corporations and corporations hold 20% or more of voting rights at the end of the fiscal year must be audited for their annual financial statements;
• State-owned enterprises, except state-owned enterprises operating in the field of state secrets according to the provisions of law, must have their annual financial statements audited;
• Enterprises in which listed organizations, issuing organizations and securities trading organizations hold 20% or more of voting rights at the end of the fiscal year must be audited for their annual financial statements;
• b) Enterprises and organizations implementing important national projects and group A projects using state capital, except for projects in the field of state secrets that must be audited according to the provisions of law. Completed project settlement report;
• Auditing firms and branches of foreign auditing firms in Vietnam must be audited for their annual financial statements.”

The Ministry of Finance also recommends that agencies and functional units not accept financial reports that do not attach audit reports of businesses and organizations. According to the law, the act of submitting financial reports to competent state agencies without attaching audit reports for cases that are required by law to be audited will be fined from 20,000,000 VND. up to 30,000,000 VND

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