Vietnam’s economy, after more than 30 years of opening up and integrating with the world economy, has achieved many outstanding achievements, businesses are growing stronger, each year hundred thousands of new businesses are established. There are domestic private enterprises, joint stock companies, foreign invested enterprises (FDI) branches of foreign corporations, foreign offices operating in the territory of Vietnam…
Accompanying the diversification of the economy in all fields of international integration and international trade, the need for independent audit is increasingly necessary and urgent for each operating business.
Currently, the Vietnamese government has only stipulates more than 20 areas of business activities that are required to be audited regularly (For example: FDI enterprises, joint-venture enterprises with foreign elements, listed joint-stock companies , credit institution companies, insurance companies, valuation companies, auditing companies, financial leasing companies…); But according to the orientation of the world economy, the field of auditing is mandatory for all operating businesses.
Auditing of financial statements occupies a necessary and important role for almost every business as well as those who use information in audited financial statements. With a developing economy, accurate and highly reliable financial information directly affects investment results and development orientation for investors and users of financial statements.
On the other hand, the Investor now expects accuracy, honesty, an objective view, as well as clear evidence in the internal control system as well as a high level of reliability and business results of his unit.
Auditing concepts and purposes
1/ Concept of audit
Auditing is the process by which independent, competent and ethical experts collect and evaluate evidence related to the information of the audited entity, for the purpose of confirming and reporting. report the extent to which this information conforms to established criteria.
2/ Purpose of audit
Operational audit: Operational audit is the independent auditors, auditing firms, branches of foreign auditing firms in Vietnam to examine and give opinions on the economy, effectiveness and efficiency. operation of a part or the whole of the entity being audited.
Auditing of financial statements: Auditing of financial statements is the independent auditors, auditing firms, branches of foreign auditing firms in Vietnam to examine and give opinions on the truthfulness and consistency of financial statements. material aspects of the audited entity’s financial statements in accordance with ISAs.
The process of performing audit services of financial statements is as follows:
- Actual survey, contract agreement and financial statement audit plan.
- Send the financial statement audit team to perform directly at the enterprise as planned;
- Research and evaluate the effectiveness and suitability of the enterprise’s internal control system;
- Review the accounting, tax, financial system …… of the business;
- Witnessing the inventory such as cash, fixed assets, stock of the entity at the time of making the audit report;
- Check and reconcile items on financial statements such as Cash, Bank deposits, Trade receivables, Inventory, Fixed assets, Trade payables, Short-term and long-term debt, Capital contribution. ; Revenue, expenses…
- Send a letter confirming the debts of the Enterprise
- Review, advise and answer factors affecting payable tax obligations;
- Discuss, adjust with accountants detected problems and give necessary advice;
- Send the client a summary of the issues during the audit and the draft audit report;
- Agree with customers the data on the financial report data;
- Issuance of the official audit report.
Viet My – VATC provides the following financial statement audit services:
- Financial statement audit service for submiting reports to authorities according to regulations.
- Financial statement audit service for submiting reports to parent company,
- Financial statement audit service for identifying tax and financial risks.
- Financial statement audit service for the purpose of bank loans.
- Internal Auditing Services, Reporting to the Shareholders’ Council.
- Auditing service on cost management.
- Service of reviewing administrative and selling expenses