In the context of Vietnam's deep integration into the global economy through new-generation free trade agreements such as CPTPP and EVFTA, the wave of foreign direct investment (FDI) is expanding significantly in both scale and depth. To maintain their position and achieve sustainable development in the global supply chain, domestic businesses need not only strong production capabilities but also a transparent financial system that meets international standards. Choosing an international auditing partner is a key factor in helping Vietnamese businesses standardize financial data, build trust with strategic shareholders, and increase access to global capital markets.
What is international partner auditing?
International partner audits refer to the use of audit services from organizations with global networks and a team of experts deeply knowledgeable about international practices. Unlike typical domestic audits, international partner audits offer a rigorous control system and a widely recognized and valuable assurance worldwide.
In the current Vietnamese market, we can clearly distinguish three main levels of auditing to help businesses choose the international auditing partner that best suits their strategic goals:
- Purely domestic audit: Performed by domestic companies, focusing on compliance with Vietnamese Accounting Standards (VAS) for tax reporting and internal management purposes.
- Domestic auditing within an international network: Vietnamese companies are official members of global auditing networks, performing international partner audits based on in-depth methodological support while maintaining legal independence at the local level.
- Full international audit: This is performed by multinational corporations with direct branches in Vietnam, applying the same international partner audit standards and business processes as the parent company globally.
The biggest differentiating factor that helps international partner auditors build credibility is the concept of global network responsibility. When a financial report is audited by an international partner auditor within a global network, market confidence is strengthened based on a common acceptance standard, giving the report high credibility with financial institutions and foreign investors.
The system of standards applied in international auditing.
Conducting international partner audits is always associated with the application of rigorous standards. Among these, the two most important pillars that a professional international partner auditor needs to master include:
- International Auditing Standards (ISA): A system of principles regarding methodology and procedures that international partner audit firms must adhere to in order to ensure the quality and objectivity of an audit.
- International Financial Reporting Standards (IFRS): Serving as a common financial language, IFRS prescribes how economic transactions are recorded and presented to ensure comparability among business entities worldwide.
Compliance with both ISA and IFRS is now almost a prerequisite if a business plans to work with international financial institutions or list on foreign stock exchanges through international partner audit services.
Leading international partner audit firms in Vietnam
To help businesses gain an overview of international partner audit service providers, here is a classification table of reputable companies operating in the Vietnamese market:
| Unit group | Representative figures | The main client base of international partner audits. |
|---|---|---|
| The Big Four | Deloitte, PwC, EY, KPMG | Multinational corporation, large listed company, key project. |
| International Mid-tier Group | Grant Thornton, Mazars, RSM, BDO | A medium-sized FDI enterprise, the company is on the path to an IPO. |
| Network Alliance | iCPA, IAV, UHY, Baker Tilly | Domestic businesses are geared towards exports, while SMEs have foreign investment. |
Note that international partner audit alliance models typically include legally independent firms that share a common international technology platform and business processes. The choice of which international partner audit firm to select largely depends on the scale of operations, budget, and strategic goals of the business at each stage of development.
The Big Four and their role in setting market standards.
The Big Four, comprising Deloitte, PwC, EY, and KPMG, currently hold a leading position in the field of international counterparty auditing. Instead of simply providing services to confirm figures, these international counterparty audit firms act as benchmarks. They apply the most rigorous processes to verify financial data, helping corporations maintain a very high level of transparency in accordance with current standards. The presence of an international counterparty audit opinion from the Big Four on financial statements is often considered a signal of top-tier credibility in the financial world.
International auditing organizations and network alliance models
Besides the Big Four, international partner audit firms such as Grant Thornton and Mazars, along with their strategic alliances, are increasingly asserting their position. The advantage of this group of international partner audit firms is their flexibility in coordination processes and reasonable service fees, making them particularly suitable for small and medium-sized enterprises (SMEs) preparing to enter the international market. These international partner audit firms help domestic businesses gradually standardize their financial practices, creating a solid foundation before proceeding with larger-scale audits or conducting cross-border mergers and acquisitions (M&A).
The strategic role of international partner audits.
International partner audit services deliver strategic value that goes far beyond the usual review of accounting data.
Confirming integrity and standardizing common financial language.
When financial statements are standardized according to IFRS under the supervision of an international partner auditing firm, all barriers to understanding the data are removed. This allows international investors to assess the financial health of Vietnamese businesses directly and accurately without the need for complex methodological conversion steps.
Consulting on risk management and compliance with international tax regulations.
In the era of global financial regulations, international partner audit professionals assist businesses in complying with complex issues such as Base Erosion and Profit Shifting (BEPS) regulations, Transfer Pricing rules, and establishing internal controls to prevent fraud risks.
Providing financial control support for projects using international funding.
For projects using ODA funding or funding from international organizations such as the European Union (EU) and the World Bank, the role of international partner audits is a mandatory requirement. International partner audit firms monitor the validity of disbursements, ensuring that costs comply with commitments in the financing agreement, thereby maintaining the credibility of the enterprise with global donors.
Practical benefits of using international auditing services.
Utilizing the services of an international partner audit firm offers distinct competitive advantages:
- Building a high level of trust: International partner audits are a crucial foundation for businesses to access long-term loan sources from foreign financial institutions or international venture capital funds.
- Facilitating the listing and fundraising process: Companies aspiring to IPO on international markets are required to possess a financial history audited by reputable international partner auditing firms.
- Improving governance quality: Through management letters from international partner audits, auditors provide expert recommendations to help businesses improve their internal control processes and professionalize their financial systems.
Challenges and considerations for businesses when transitioning to international auditing.
While offering significant value, businesses need to be well-prepared for the challenges involved in hiring international audit partners. The cost of international audit services is often considerably higher than the average due to the required expertise and network assurance responsibilities. Furthermore, the pressure to standardize original accounting data is immense; if the accounting system is not fully established, the international audit process can be lengthy and require numerous material adjustments. Businesses also need to ensure they have sufficient internal personnel with the necessary expertise to effectively collaborate with the international audit team.
The future of international auditing in Vietnam in the period of 2025
Entering 2025, the international partner auditing sector in Vietnam will witness significant shifts following the IFRS adoption roadmap (according to Decision No. 345/QD-BTC of the Ministry of Finance). The main trends in international partner auditing include:
- Sustainable Auditing (ESG): International Partner Audits conducts assessments of the accuracy of environmental, social, and governance reports as requested by global green supply chains and investment funds.
- Digital Audit: Our international partner audit firms apply artificial intelligence to analyze big data, enhancing accuracy and risk detection across a wide range of transactions.
Conclude
International partner audits serve as a strategic bridge, helping Vietnamese businesses confidently integrate into the global market. Choosing the right international partner audit firm not only ensures transparency in data but is also a crucial step in enhancing brand value. Businesses should base their selection on long-term goals and available resources to choose a suitable international partner audit firm, ensuring a balance between cost and financial management effectiveness.
Contact information for MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Other services
- Auditing: Auditing Services, Construction Auditing Services, Financial statement audit services
- Accounting and Taxation: Tax accounting services, Tax report, Transfer Pricing Advisory. Tax Accounting Services, Tax reporting services, Transfer Pricing Service, Affiliate Trading Service
- Legal aspects: Work permit services, Business registration certification services, Investment Certificate
- Other: Transfer Pricing Service, Affiliate Trading Service, Business Operations Consulting Services
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Frequently Asked Questions about International Partner Audits
How does the cost of international partner audits typically differ from that of domestic audits?
Based on market references, the cost of auditing international partners can be significantly higher, sometimes 3 to 10 times depending on the scale, due to the stringent requirements for personnel qualifications and the legal responsibilities of a global network.
Can a company applying VAS conduct international partner audits under ISA?
Absolutely. The ISA standards specify the procedures and methods for conducting international counterparty audits, and can be applied to financial statements prepared under VAS or any other accepted reporting framework.
What are the most significant differences between VAS and IFRS that international partner auditors need to be aware of?
The core difference lies in the recognition principle; IFRS prioritizes the use of fair value to accurately reflect market developments, while VAS is still primarily based on the historical cost principle.
