What is compulsory audit? Enterprises and organizations required to be audited in Vietnam

What are the enterprises and organizations required to be audited in Vietnam? – Van Sang (HCMC, Vietnam)


What is compulsory audit? Enterprises and organizations required to be audited in Vietnam
(Internet image) 

1. What is compulsory audit?

According to Clause 1, Article 9 of the Law on Independent Audit 2011, a compulsory audit is the audit for the annual financial statements, the settlement statements of completed projects and other financial information of the audited units specified in clause 1 and clause 2 Article 37 of Law on Independent Audit 2011 and other provisions of concerned law.

And according to  Clauses 2 and 3, Article 9 of the Law on Independent Audit 2011:

- Audit contract of annual financial statements of the enterprises, organizations that are required to audit the financial statements must be concluded no later than thirty days before the date of ending the year accounting period.

- Enterprises and organizations that are required to audit as submitting financial statements to the competent State agencies and as publicizing financial statements audit are required to attach the audit statements; in case when the State agencies receive financial statements of the enterprises, organizations which are required to audit without the attached audit statements, the State agencies are responsible for sending notice to the competent state agencies for handling in accordance with the law regulations.

2. Enterprises and organizations required to be audited in Vietnam

Enterprises and organizations that have to be audited under Clause 1, Article 9, Article 37 of the Law on Independent Audit 2011, Article 15 of Decree 17/2012/ND-CP include:

(1) Enterprises and organizations whose annual financial statements must be audited in Vietnam according to Clause 1, Article 37 of the Law on Independent Audit 2011:

Enterprises and organizations whose annual financial statements, as prescribed by law, must be audited by the audit firm, branches of the foreign audit firm in Vietnam, include:

- Enterprises with foreign owned capital;

- Credit institutions which are established and operating under the Law on credit institutions, including branches of foreign banks in Vietnam;

- Financial organizations, insurance companies, reinsurance companies, insurance brokerage companies, branches of foreign non life insurance companies.

- Public companies, securities issuing organizations and securities trading organizations.

- Other enterprises and organizations are subjects of compulsory auditing under relevant provisions of law.

Enterprises and organizations subject to the audit of annual financial statements above, if as prescribed by law, must make the consolidated or comprehensive financial statements must implement audit for consolidated or general financial statements.

(2) Enterprises and organizations that have to be audited in Vietnam according to Clause 2, Article 37 of the Law on Independent Audit 2011

Enterprises and organizations subject to audit by the audit firm and branches of foreign audit firms including:

- State enterprises, except those operating in the field of state secrets as prescribed by law, must be audited for the annual financial statements;

- Enterprises, organizations implementing the national important projects, group-A projects using state funds, except for the projects in the field of state secrets as prescribed by law, must be audited for the settlement report of project completion;

- Enterprises and organizations with 20% or more of the voting rights held by state groups, state corporations in the end of the fiscal year must be audited for annual financial statements;

- Enterprises with 20% or more of the voting rights held by securities listing, issuing and trading organizations at the end of the fiscal year must be audited for annual financial statements;

- The audit firm, branches of foreign audit firms in Vietnam must be audited for annual financial statements.

Van Trong

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

317 lượt xem
  • Address: 19 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd.
Editorial Director: Mr. Bui Tuong Vu - Tel. 028 3935 2079
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;