Financial statement auditing services are a mandatory requirement for many businesses in Vietnam, especially FDI companies, state-owned enterprises, and large-scale companies. Auditing not only helps ensure legal compliance but also enhances transparency and builds trust with banks and investors. This article provides a comprehensive overview of the process, costs, required entities, and reasons to choose MAN – Master Accountant Network.
What is a financial statement audit and why is it important?
Service audit of financial statements This is the process of verifying and confirming the accuracy and reasonableness of financial data prepared by businesses, carried out by independent auditors. In the context of Vietnam's increasingly integrated economy, the public disclosure of financial data is not only a legal obligation but also a "passport" that helps businesses access international investment capital and build lasting credibility in the market.
According to statistics from the Ministry of Finance, tens of thousands of businesses undergo mandatory audits annually. Utilizing financial statement auditing services helps management identify gaps in internal control systems, thereby preventing fraud and accounting errors. This is a core foundation for stakeholders such as banks, investors, and tax authorities to have confidence in the financial health of the entity.
Legal basis for financial statement auditing services in Vietnam
The operation of financial statement auditing services is currently strictly regulated by the existing legal framework. Understanding these regulations helps businesses fulfill their responsibilities and avoid the risk of administrative penalties.
Relevant laws and decrees
The highest legal framework for financial statement auditing services includes:
- Law on Independent Auditing No. 67/2011/QH12Regulations concerning the principles, conditions, and authority of auditors and auditing firms.
- Decree 17/2012/ND-CP: Detailed guidance on the implementation of certain articles of the Law on Independent Auditing.
- Decree 41/2018/ND-CP: Regulations on administrative penalties for violations in the field of accounting and independent auditing.
- Circular 214/2012/TT-BTC: The Vietnamese Auditing Standards (VSA) System of 37 Standards.
Common types of audit opinions
In the financial statement audit report, the auditor will issue one of four types of opinions:
- Unqualified opinion: The report fairly and reasonably reflects the facts in all material respects.
- Exceptional comments: There are errors or limitations in scope, but these do not have a pervasive impact on the entire report.
- Opposing opinion: The errors were material and had widespread consequences.
- Refusal to express an opinion: Due to insufficient audit evidence.
Which entities are required to use financial statement auditing services?
Based on Article 15 of Decree 17/2012/ND-CP and the latest amendments, financial statement auditing services are mandatory for:
- Foreign direct investment (FDI) enterprises.
- Credit institutions and branches of foreign banks.
- Financial institutions and insurance companies.
- A public company, an organization that issues and trades securities.
- State-owned enterprises (SOEs).
Criteria for determining large scale according to Decree 90/2023/ND-CP
Units that do not fall into the above categories but satisfy at least two of the following three criteria also need to undergo an audit:
| Criteria | Regulatory threshold |
| Number of workers (Social Insurance) | Over 200 people |
| Total annual revenue | Over 300 billion VND |
| Total assets | Over 100 billion VND |
Comparing audit services: MAN vs. the Big4 (PwC, Deloitte, KPMG, EY)
The choice of financial statement audit provider depends on the size and budget of each business. Below is an objective comparison table:
| Criteria | The Big 4 group (PwC, EY, Deloitte, KPMG) | MAN – Master Accountant Network |
| Target customers | Multinational corporation, a publicly listed company with a large market capitalization. | Medium and large FDI enterprises, state-owned enterprises, private enterprises. |
| Service fees | Very high (usually in USD). | Reasonable and optimized according to the actual scale of the business. |
| Flexibility | The process is rigid and difficult for senior management to access. | Flexible, 24/7 support, direct interaction with experts. |
| Value added | Outstanding global brand reputation. | In-depth consulting on tax, internal control, and practical operations in Vietnam. |
| Strengths | The international standards system is very strict. | Local expertise, fast processing speed, high security. |
Reputable financial statement auditing firms in Vietnam
Businesses can refer to the list of reputable units provided. Ministry of Finance licensing:
- The Big 4: PwC, Deloitte, KPMG, EY (For international scale).
- Other international auditing firms: Grant Thornton, BDO, RSM, Mazars.
- Local Units & Expert Networks: MAN – Master Accountant Network: Specializing in FDI and large-scale enterprises in Vietnam; AASC, A&C: Audit firms with a long history in Vietnam.
Why should businesses choose MAN for their audit services?
MAN – Master Accountant Network is more than just an auditing firm; we are a strategic partner for businesses.
A team of elite experts
The auditors at MAN all own CPA Vietnam certificationWe hold ACCA certifications and have over 10 years of experience working at large corporations. We have a thorough understanding of the intricacies of the Vietnamese accounting system.
A "tailor-made" solution tailored to your needs.
We don't apply a one-size-fits-all approach. MAN's financial statement audit services are tailored to address the specific tax, cash flow, or internal control challenges your business is facing.
Commitment to confidentiality and timeliness.
We understand that financial data is the most valuable asset. MAN applies an internationally standardized information security system and is always committed to releasing reports on time as agreed, helping businesses stay proactive in all their business plans.
Price list for financial statement audit services at MAN – Master Accountant Network
At MAN, we understand that every business has its own unique characteristics. Our financial statement audit service fees are based on transparency and fairness. Below is a sample fee table (Actual fees will be quoted after reviewing your case):
| Revenue/Total Assets (Which is greater?) | Reference service fee (VND) |
| Under 20 billion VND | 15.000.000 – 25.000.000 |
| From 20 to 50 billion VND | 25.000.000 – 45.000.000 |
| From 50 to 100 billion VND | 45.000.000 – 80.000.000 |
| Over 100 billion VND | Contact us for a detailed price quote. |
Note: The above fee does not include VAT and actual business trip expenses (if any).
The process for performing financial statement audits at MAN.
Step 1: Receiving requests and conducting initial surveys
MAN's experts will gather information from the business, understand its industry specifics and scale of operations. Then, we conduct a preliminary assessment of the internal control system to develop the most optimal audit plan.
Step 2: Develop a detailed audit plan.
Based on the survey results, the audit team will identify key risk areas, establish materiality levels, and develop a specific on-site work schedule to avoid disrupting the business's operations.
Step 3: Conduct an on-site audit.
This is the core phase of the financial statement audit service. Auditors will conduct the following:
- Witness the inventory of cash, stock, and fixed assets.
- Reconcile balances with third parties (banks, customers, suppliers).
- Examine the details of accounting documents, invoices, and economic contracts.
- Analyze and evaluate the reasonableness of accounting estimates.
Step 4: Summarize and discuss the results
After gathering sufficient evidence, MAN will compile a list of transactions requiring adjustment. We will hold a face-to-face meeting with the Board of Directors and the Accounting department to explain the findings and advise on measures to improve the financial management system.
Step 5: Issue the official audit report.
The audit report, approved by the Certified Public Accountant (CPA), will be sent to the business. This will be accompanied by... Management letter – This document contains valuable recommendations to help businesses optimize their operational processes and mitigate future tax risks.
Real-world case study: The power of financial statement auditing services.
To better understand its practical value, let's consider the case of NT Production & Export Co., Ltd. (a foreign direct investment (FDI) enterprise in Binh Duong).
Context: In 2023, NT Company faced difficulties in tax settlement and was denied credit line renewal by the bank due to inconsistencies between cash flow and profit in its self-prepared financial statements.
Solution: The company used the financial statement audit services of an independent partner. The audit process revealed the following:
- Inventory worth over 5 billion VND was artificially suspended due to accounting software errors that failed to update cost of goods sold in a timely manner.
- Interest expenses were not properly capitalized, resulting in fictitious losses.
Result: Following the fully unqualified audit report and adjustments to the figures based on the consultant's recommendations, NT Company has:
- The bank extended the loan limit by 50 billion VND thanks to transparent financial data.
- A potential tax penalty of up to 800 million VND was avoided thanks to timely adjustments made before the tax authorities conducted an audit.
Conclude
Financial statement auditing services are fundamental to building a strong and transparent business. In a volatile market, having "clean" financial statements not only helps you comply with the law but also creates a huge competitive advantage when working with international partners.
If you are looking for a supplier newspaper auditing services For reputable financial reporting services at a more reasonable cost than the Big4 firms but with comparable quality, contact MAN – Master Accountant Network today.
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.
FAQ – Frequently Asked Questions about Financial Statement Auditing Services
What is the penalty for FDI enterprises that are late in submitting audited financial statements?
According to Decree 41/2018/ND-CP, submitting financial reports to state agencies less than 3 months late will result in a fine of VND 10,000,000 - VND 20,000,000. If the delay exceeds 3 months or audited financial reports are not submitted, the fine can reach VND 50,000,000. More importantly, this delay will reduce the company's credibility in the eyes of regulatory agencies.
If the auditor's opinion is "Except," will the business run into trouble with the bank?
In practice, most banks require a "Full Acceptance" opinion to approve large credit limits. If a "Quoted" opinion is received, the business needs to provide a detailed explanation of the reason (e.g., failure to reconcile a small outstanding debt or lack of witness testimony during the year-end inventory count). MAN will assist in advising on necessary adjusting entries in the following year to improve the audit opinion.
How is auditing financial statements different from tax settlement?
This is a common misconception. Financial statement audits aim to verify the accuracy of financial data according to accounting standards (VSA/VAS). Meanwhile, tax settlement is the calculation of the amount of tax payable according to tax law. However, a quality audit service like MAN's will help businesses detect tax errors early during the audit process, minimizing the risk of being subject to back taxes when the tax authorities conduct an inspection.
Why are MAN's financial statement audit service fees more competitive than those of the Big4 firms?
MAN focuses on optimizing workflows through technology and utilizing a team of local experts with in-depth knowledge of the Vietnamese business environment. We eliminate unnecessary international branding costs to concentrate resources on providing substantive advice to clients, helping businesses receive value commensurate with the most reasonable investment cost.
