The cost of auditing financial statements is the service fee that a business pays to an independent auditing firm to verify the accuracy of its financial data. Independent Auditing Law 2011This is a mandatory obligation for FDI enterprises, credit institutions, and listed companies.
In the context of integration, the cost of auditing financial statements acts as insurance for the financial transparency of an entity. This fee typically accounts for approximately 0.05% to 0.5% of revenue, depending on the complexity of the transaction. A thorough understanding of the accounting process is crucial. Circular 200/2014/TT-BTC This helps businesses proactively plan their tax and financial matters.
The concept and nature of financial statement audit costs.
Expense audit of financial statements Essentially, it's a service fee under a contract between the audited entity and the auditing firm. This fee compensates the resources the auditor expends to gather evidence and provide an opinion on material misstatements.
According to Article 42 of the Law on Independent Auditing, the fee is agreed upon based on the workload and professional responsibilities. For businesses, this is a necessary management expense to enhance their reputation with banks, investors, and tax authorities.
Mandatory legal regulations regarding the auditing of financial statements.
Businesses need to identify the entities required to be audited in order to estimate the audit costs of their financial statements appropriately. Violations of this regulation can lead to severe administrative penalties under Decree 41/2018/ND-CP on accounting and auditing. Below is a summary table of the mandatory entities and related legal basis:
| Object | Legal basis | Audit frequency |
| Foreign direct investment (FDI) enterprises | Decree 17/2012/ND-CP | Annual |
| Public, listed company | Securities Law 2019 | Annual |
| Credit institutions, foreign banks | Law on Credit Institutions | Annual |
| Insurance companies | Insurance Business Law | Annual |
| State-owned enterprises | Decree 17/2012/ND-CP | Annual |
Understanding the target audience helps businesses proactively manage their operating budget. This avoids being caught off guard when it comes time to prepare annual tax returns.
Factors that directly impact the cost of auditing financial statements.
Audit cost financial reports There is no fixed price range for all types of businesses. Audit firms typically assess the risks and workload before sending a formal price quote.
Business size and transaction volume
Scale is a key factor influencing the cost of auditing financial statements. Businesses with large total assets and millions of invoices require a significant amount of time for inventory and reconciliation. The large number of scattered bank accounts and warehouses also increases the personnel costs involved.
Complexity of the business
Industries such as construction and real estate typically have higher financial statement audit costs. Determining revenue based on progress or valuing risk provisions requires a high level of expertise. The specific audit procedures for these industries are also more complex than those for general commerce.
Internal Control System (ICS)
If a company has a strong internal control system, auditors can reduce the number of detailed audit procedures. Conversely, if the accounting system is weak, the auditing firm is forced to increase its review staff. This directly drives up the cost of auditing financial statements.
Applicable reporting standards (VAS and IFRS)
Auditing according to the Ministry of Finance's IFRS roadmap is becoming increasingly common. Auditing IFRS reports typically costs 1.5 to 2 times more than auditing VAS reports. This is due to the high demands on personnel qualifications and the use of fair value asset valuation methods.
Reference price list for auditing financial statements in 2026.
Below is a reference price list for financial statement audits based on the general market rates in Vietnam. Actual prices may vary depending on specific negotiations between the two parties.
| Business size (Revenue/Assets) | Standard | Reference fee (VNĐ/Year) |
| Under 20 billion VND | VAS | 15.000.000 – 30.000.000 |
| From 20 to 100 billion VND | VAS | 30.000.000 – 60.000.000 |
| From 100 to 500 billion VND | VAS/IFRS | 60.000.000 – 150.000.000 |
| Over 500 billion VND (Listed) | VAS/IFRS | 150.000.000 – 500.000.000+ |
| Multinational corporation/Big4 | IFRS | 500.000.000 – 2.000.000.000+ |
Mid-year review fees typically account for approximately 50% to 70% of the annual audit fee. Businesses should also be aware of additional charges such as travel expenses, printing, and VAT as per current regulations.
Guidelines for accounting for audit costs of financial statements according to Circular 200
Properly accounting for audit fees in financial statements ensures that the income statement accurately reflects the costs. This expense is classified under the category of outsourced services for general management purposes.
User account
According to Circular 200/2014/TT-BTC, accountants use the following accounts:
- Account 642: Business management costs.
- Account 6427: Outsourced service costs.
- Account 1331: VAT is deductible.
Actual accounting procedures
When a service is rendered, the accountant records the transaction in the books based on the contract and invoice:
Case 1: Upon receiving the service invoice Debit Account 6427 – Outsourced service costs; Debit Account 1331 – Deductible VAT; Credit Account 331 – Accounts payable to suppliers.
Case 2: Payment for services Debit Account 331 – Accounts Payable to Suppliers; Credit Accounts 111, 112 – Cash or Bank Deposits
Case 3: Provision for expenses If a year-end audit is conducted but invoices are not yet available, the accountant should make an advance provision to ensure compliance: Debit Account 6427, Credit Account 335 – Accrued Expenses.
The necessary documentation is required for audit fees to be considered a valid expense.
For the cost of auditing financial statements to be considered a deductible expense when calculating corporate income tax, the following documents are required:
- Audit contract: Clearly state the scope, duration, and agreed-upon fees.
- Liquidation record: Confirm that the work is complete and the report has been issued.
- Financial invoice: Valid information regarding buyer, seller, and tax rate.
- Payment documents: Cashless payment is mandatory for bills of 20 million VND or more.
How to optimize the cost of auditing financial statements for businesses.
Businesses can optimize the cost of financial statement audits through operational strategies. Early and organized data preparation significantly reduces auditors' on-site work time.
Improving internal accounting capabilities helps ensure a smooth and error-free audit process. Additionally, choosing an audit time that avoids peak seasons can help you negotiate more favorable fees.
Conclude
The cost of auditing financial statements is a measure of a company's commitment to transparency and professionalism. Mastering accounting practices and preparing thorough documentation helps companies optimize their finances and build trust with partners.
MAN – Master Accountant Network is a professional auditing firm with a deep understanding of the specific characteristics of the Vietnamese industry. We are committed to delivering real value, helping businesses improve their systems and optimize costs. financial statement auditing services most effective.
Service contact information at 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
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 the Cost of Auditing Financial Statements
Do newly established businesses need to be audited?
If you are subject to mandatory requirements, such as FDI, you are still required to undergo and bear the cost of annual financial statement audits even if you have not yet generated revenue.
Is it possible to combine audit and tax consulting fees?
It is possible to opt for a combined service package to reduce the total cost. However, the invoice should clearly separate the items for convenient accounting and explanation.
Will the sudden increase in costs be subject to an audit?
Fluctuations in fees are normal if the scale of operations changes. You just need to explain the actual reasons, such as branch expansion, to ensure it's justifiable.
