Subjects required to be audited according to the Audit Law

Subjects required to be audited according to the Audit Law

Subjects required to be audited according to the Law on Independent Auditing

According to the provisions of Article 37 of the Law on Independent Auditing dated March 29, 2011 and Article 15 of Decree No. 17/2012/ND-CP dated February 13, 2012 guiding the Law on Independent Auditing, the following subjects are: This requires auditing:

Article 15. Audited units

1. Enterprises and organizations whose annual financial statements are required by law to be audited by auditing firms or branches of foreign auditing firms in Vietnam include:

a) Enterprises with foreign investment capital;

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b) Credit institutions established and operating under the Law on credit institutions, including foreign bank branches in Vietnam;

c) Financial institutions, insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, branches of foreign non-life insurance enterprises.

d) Public companies, issuing organizations and securities trading organizations.

2. Other businesses and organizations are required to be audited according to relevant laws.

3. Enterprises and organizations must be audited by auditing firms and branches of foreign auditing firms in Vietnam, including:

  • a) State-owned enterprises, except state-owned enterprises operating in the field of state secrets as prescribed by law, must have their annual financial statements audited;
  • 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;
  • c) 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;
  • d) 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. ;
  • d) Auditing firms and branches of foreign auditing firms in Vietnam must be audited for annual financial statements.
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4. Enterprises and organizations subject to annual financial statements audit specified in Clause 1 and Clause 2

This means that if a consolidated financial statement or general financial report is required by law, an audit of the consolidated financial statement or general financial report must be performed.

5. The audit of financial statements and project settlement reports completed for enterprises and organizations specified in Points a and b, Clause 2 of this Article does not replace the audit by the State Audit.

6. Enterprises and other organizations voluntarily be audited.

Subjects required to be audited

What is a foreign-invested enterprise?

Time before July 1, 2015 

According to the provisions of Clause 6, Article 3 of the Investment Law dated November 29, 2005, effective July 1, 2006

A foreign-invested enterprise is an enterprise established by a foreign investor to carry out investment activities in Vietnam or a Vietnamese enterprise whose shares are purchased, merged, or acquired by a foreign investor. .

Time from July 1, 2015 

Article 3 of the Investment Law dated November 26, 2014, effective from July 1, 2015, stipulates:

“17. A foreign-invested economic organization is an economic organization that has foreign investors as members or shareholders.”

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Regarding investment conditions, there are differences according to the ratio of foreign capital contribution specified in: Article 23. Implementation of investment activities of economic organizations with foreign investment capital

Pursuant to the above regulations, foreign-invested enterprises (or foreign-invested economic organizations) are enterprises whose capital investors are foreign individuals or organizations that are required to audited financial statements.

Administrative fine if audit is not conducted

Point h, Clause 2, Article 10 of Decree No. 105/2013/ND-CP dated September 16, 2013 of the Government stipulating penalties for administrative violations in the field of accounting and independent auditing regulations on penalties for violations Violating regulations on financial reporting, settlement reports and financial reporting disclosure: "Fine from 20.000.000 Dong arrived 30.000.000 contract for the act of submitting financial reports to competent state agencies without attaching audit reports for cases that are required by law to be audited.

Please contact AACS auditing service immediately so we can advise and send a quote to your company quickly according to the information below.

Audit department: Mr Manh – 0908 381 550 – Email: manh.aacs@gmail.com

AACS Auditing Company Limited would like to thank you for your interest in our Company's auditing services. If you have any questions, please contact us immediately for advice and answers to your questions.

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