Vinasc’s principles when providing auditing services are to maintain a long-term vision, act responsibly for the benefit of the community, and pass on the legacy to future generations.
Change rapidly in the business environment
The speed of technology development is very fast during the Covid pandemic. The Government of Vietnam completed the digitization of most administrative procedures in the fields of Investment, Tax, Accounting, Auditing, and Customs. Along with the application of synchronous e-invoices across the country, tax authorities, and businesses can access invoice information almost immediately.
The business model transformation takes place strongly
Competition occurs at a fast pace and on a wide scale, not only between enterprises in the same line but also between traditional enterprises in the line and young enterprises outside the line possessing completely new solutions and technologies. The competitive advantage of enterprises is no longer as long as it used to be.
The corporate administration model is forced to change according to adaptation and development. Procurement, research, production, sales, personnel, and training processes are improved, optimized, and perfected day by day. Notably, some of the above-mentioned processes have been replaced by automation by many businesses, significantly reducing the time and cost of production and service provision.
Auditing services in a new environment
Auditing activities at companies providing independent audit services have changed significantly in recent years. The proportion of work performed online by auditors is increasing rapidly.
On the one hand, documents such as invoices and contracts are converted to electronic form as mentioned above.
On the other hand, most activities of organizations and businesses are managed by software and can be looked up online such as banking transactions, tax reports, reports of insurance agencies, …; And other applications that come with artificial intelligence with great mining potential are in the trial and completion stage…
The above-mentioned technology applications save most of the time exchanging, analyzing information, and sending documents back and forth between the auditor and the client, helping the auditors have time to focus on the content of work and have in-depth professional judgments to make each audit more effective.
What are auditing services?
Auditing services, also known as independent audit, according to the Law on Independent Audit of Vietnam, are understood as certified public accountants, an audit firm giving its independent opinion on the financial statements and other audit work under the audit contract.
The independent audit has three main activities: financial statement audit, compliance audit, and performance audit.
The value of the audit report: The audit report on the financial statements gives an opinion on the truthfulness and reasonableness of the financial statements, whether it is in accordance with accounting standards, or accounting policies issued by a competent authority or organization.
Auditing services for FDI enterprises
Vietnam has many factors available to attract inflows of foreign direct investment (FDI), including high capital demand, a potential consumption market still on the rise, a favorable geographical location for logistics activities, low labor costs, many tax and land incentives, and political stability.
In order to absorb advanced technology, learn modern management methods, join the global supply chain network, increase the number of jobs, improve labor skills, and increase budget revenue, Vietnam has been very active in attracting inflows of FDI in recent years.
According to the Investment Law, a foreign-invested business organization means an organization whose members or shareholders are foreign investors. A company with a foreign investor as a member or shareholder is called an FDI company.
FDI enterprises are one of the organizations that the Law on Independent Audit stipulates must have audited their annual financial statements by an independent auditing service company.
In addition, some FDI enterprises also have to submit audited financial statements to the overseas parent company for the purpose of consolidating financial statements.
Regulations on the submission of audited financial statements
Circular 200 of the Ministry of Finance stipulates where to receive audited financial statements of FDI enterprises, including: Financial agencies, Tax agencies, Statistics agencies, Business registration agencies. In addition, enterprises with headquarters located in export processing zones, industrial parks, and high-tech zones must also submit audited annual financial statements to the Management Board of export processing zones, industrial parks, and high-tech zones.
The deadline for submission of audited financial statements of FDI enterprises as prescribed in Circular 200 of the Ministry of Finance is 90 days from the end of the annual accounting period.
Penalties related to the submission of audited financial statements according to Decree 41/2018/ND-CP:
- A fine ranging from VND 5.000.000 to VND 10.000.000: The financial statement is submitted less than 3 months after the specified deadline
- A fine ranging from VND 10.000.000 to VND 20.000.000: The financial statement is submitted 3 months after the specified deadline or later, or submit unaudited financial statements
- A fine ranging from VND 20.000.000 to VND 30.000.000: The financial statement’s figures are falsified; provide or publish financial statements which have inconsistent figures within an accounting period for use in Vietnam
A fine ranging from VND 40.000.000 to VND 50.000.000: Failure to submit financial statements. to the competent authorities; Failure to disclose financial statements.
Overview of Vinasc's audit services process
- Procedure for accepting customers
- Initial audit planning
- Define audit strategy
- Understanding and evaluating internal control activities
- Learn about the customer’s business environment
- Initial risk assessment
- Designing additional audit procedures
- Perform audit procedures including tests of controls and substantive tests
- Synthesize problems, discuss, and consult suitable solutions with customers
- Issuance of audit report and management letter
The documentations need to prepare for an audit
For an audit to take place effectively, with quality, and quickly, it is necessary the coordination of both. the audit service company and the client. Customers should prepare some documents in advance including:
- Enterprise legal documents: investment certificate, enterprise registration certificate, etc
- Financial statements: balance sheet, income statement, trial balance
- Tax declarations of all kinds in the year: VAT, CIT, PIT, FCT, etc
- Detailed accounting books: report of payables and receivables, table of assets. depreciation, tools and equipment, general account of input-output-inventory, payroll, …
- Original documents: purchase and sale invoices, import and export. declarations, bank statements, purchase and sale contracts, loan contracts, labor contracts, etc.
During the audit, additional documents will arise that the auditor needs to consider and learn more carefully.
Audit perform time
The time to start the audit is right after the enterprise’s accountants complete. all accounting books and annual financial statements. However, an inventory of assets must be made at the end of the financial year, including cash, inventory, and fixed assets.
The average time to complete audit services for clients who are small and medium-sized. enterprises is from 15 to 30 days, depending on the progress of exchanging. issues between auditors, corporate accountants, and business directors. In addition, the execution time also depends on the waiting time. for confirmation of account balances and transactions during the year by third parties. such as banks, investors, creditors, suppliers, customers, etc.
Principles of operation at Vinasc
- Vinasc builds a culture that values the quality of audit services from the top. management to all employees: complying with audit standards, assessing the quality of audit records, and monitoring the quality control system.
- Vinasc upholds compliance with auditing professional ethics: developing policies, disseminating. requirements, and establishing processes to detect and resolve issues of non-compliance.
- To achieve quality work in audit services, the qualification and motivation of employees are two decisive factors. Vinasc focuses on recruiting qualified employees, combined with vocational. education activities, updating knowledge, and sharing professional experiences to help employees maintain and improve their professional qualifications. Besides, the management team regularly discusses and disseminates regulations. on professional ethics, job evaluation, and career development as well as a suitable. promotion and income growth roadmap to motivate staff.
Contact
We create value through a team of highly specialized, dedicated professionals who understand customers. Vinasc’s strength is multilingual consulting combined with experience working with clients in most countries around the world.
If your business needs to learn about auditing services, please contact Vinasc using the information below. We will learn about the information and send a detailed quotation letter for your consideration.