Vinasc is one of the companies providing auditing services in Ho Chi Minh City, specializing in providing financial statement auditing services for foreign direct investment enterprises (FDI).
Ho Chi Minh City
Ho Chi Minh City, also known as Saigon, is the largest city in Vietnam in terms of population and gross domestic product (GRDP). Known as the “Pearl of the Far East” or “Paris of the East”, this city has attracted attention for its beauty and rapid cultural, economic and social development.
Southern people in general and people in Ho Chi Minh City in particular have a special cultural feature. They tend to be extroverted, open-minded, outspoken, like to do big business, explore adventurous challenges, and are very hospitable. This also partly explains why business and trade activities are always vibrant here. It also makes the city an attractive destination for foreigners, where they open offices and factories and develop production and business activities.
Ho Chi Minh City is attracting the largest number of FDI enterprises in the country. Simultaneously, with government regulatory demands and the increasing need for transparency in financial information in the market, auditing services in Ho Chi Minh City are developing as an essential trend.
What are auditing services?
Auditing services are the practice that qualified auditors will conduct audit procedures for the financial statements of an enterprise. The audit must comply with the system of Auditing Standards issued by the Ministry of Finance. The ultimate outcome is a set of audited financial statements accompanied by the auditor’s opinion on whether the financial statements have been presented truly and fairly.
Legal regulations regarding the audit of financial statements.
According to the Investment Law, an economic organization with foreign investment capital is an economic organization in which foreign investors are members or shareholders. A company with foreign investors as members or shareholders is referred to as a foreign direct investment enterprise.
According to the Law on Independent Audit, FDI enterprises are required to have annual financial statements audited by independent auditing service companies in Vietnam to submit to state management agencies.
Circular 200 issued by the Ministry of Finance stipulates that the recipients of audited financial statements of FDI enterprises include: financial authorities, tax authorities, statistical authorities, and business registration authorities. Additionally, enterprises with headquarters located in export processing zones, industrial zones, and high-tech zones are also required to submit their audited annual financial statements to the Management Board of the respective zones.
The deadline for submitting audited financial statements of FDI enterprises as regulated in Circular 200 by the Ministry of Finance is no later than 90 days from the end of the accounting year.
The penalties related to the submission of audited financial statements
- Fines ranging from 5,000,000 VND to 10,000,000 VND if the submission of audited financial statements is delayed by less than 3 months;
- Fines ranging from 10,000,000 VND to 20,000,000 VND if the submission of audited financial statements is delayed by over 3 months or if unaudited financial statements are submitted;
- Fines ranging from 20,000,000 VND to 30,000,000 VND if the information and data on the financial statements are false or if the financial statements have inconsistent data within the accounting period;
Fines ranging from 40,000,000 VND to 50,000,000 VND if the financial statements are not submitted to the competent state authority.
Process of the auditing services in Ho Chi Minh City by Vinasc
Financial statement auditing service is the core service of Vinasc. We prioritize expertise, service quality, and professional ethics in the field of auditing.
The auditing process
An audit of financial statements involves the following main steps:
- Contract signing: Agreeing on the scope of the audit, defining relevant terms, and signing an audit contract.
- Audit planning: This step includes assessing overall risks, determining the scope, selecting audit methods, and creating a schedule for the process.
- Conducting the audit: The auditing services in Ho Chi Minh City team will gather, examine, and analyze financial information to assess the accuracy and reliability of the financial statements.
- Issuing audit report and management letter: The audit report outlines the results, findings, and auditor’s opinions on the truth and fairness of the financial statements. Additionally, if necessary, the auditor may provide a management letter, highlighting issues and recommendations to enhance financial processes and internal control systems.
Audit timeline
The audit starts immediately after the company’s accounting completes all accounting records and the annual financial reports. However, the stocktake must be conducted on the last day of the financial year, including the verification of cash, inventory, and fixed assets.
The average time to complete an auditing service contract in Ho Chi Minh City for customers who are small and medium-sized enterprises ranges from 15 to 30 days. This depends on the pace of communication between auditors, the company’s accountants, and the business director. Furthermore, the execution time also relies on the waiting period for confirming account balances and transactions throughout the year from third parties such as banks, investors, creditors, suppliers, customers, …
Document preparation for audit
For an audit to take place quickly and effectively, it is necessary to coordinate with the accounting department at the enterprise. Before the audit, the client needs to prepare a set of documents including the following main items:
- Enterprise legal documents: investment registration certificate, enterprise registration certificate, …
- Set of financial statements: balance sheet, profits and losses, trial balance.
- Tax declarations of all kinds in the year: VAT, CIT, PIT, FCT, etc.
- Accounting books: summary of debts, amortization and allocation asset, inventory import and export, payroll,…
- Original documents: purchase and sale invoices, import and export declarations, bank statements, purchase and sale contracts, loan contracts, labor contracts, etc.
During the auditing process, additional documentation and supporting records may arise that the auditor needs to review and examine in more detail.
The value added gained when utilizing auditing services in Ho Chi Minh City
In addition to auditing services, Vinasc also provides consulting services related to legal matters, taxation, human resources, and accounting for businesses. Our team of consulting experts has extensive years of experience and has interacted with clients in various countries around the world. We have the capability to use multiple languages, including English, Chinese, Korean, and Japanese, to meet the diverse needs of our clients.
Vinasc holds a significant vision for building a corporate culture in which service quality and professional ethics are highly regarded, from top management to every employee. We are committed to ensuring professionalism and integrity in every aspect of our work, consistently adhering to regulations and professional standards. This vision is reflected in continuous training and development for our staff, creating opportunities for them to attain high expertise and best meet client needs.
Vinasc believes that by delivering value and trust to our clients, we will maintain long-term relationships and achieve sustainable success for both parties.
Contact
If your company is interested in using auditing services in Ho Chi Minh City provided by Vinasc, please get in touch with Vinasc using the information below. We will gather the necessary details and send a detailed quotation for your consideration.