The entities required to have their financial statements audited are economic entities and non-profit organizations specifically defined by Vietnamese law, which must undergo independent audits before disclosing information or submitting it to state management agencies. Entering 2026, in the context of tightening financial transparency and combating transfer pricing, correctly determining legal status is not only for compliance purposes. Law on Independent Auditing No. 67/2011/QH12 Furthermore, it is a crucial condition for businesses to maintain their reputation, credit rating, and trust in the capital market.
In the context of the rapidly developing digital economy and sustainable reporting (ESG) in Vietnam in 2026, the role of auditors for entities required to audit financial statements is increasingly important. Audit results not only reflect financial data but also serve as a basis for evaluating the management capacity and stability of businesses within the global supply chain. The analysis below provides a comprehensive update on new regulations, penalties, and implementation guidelines, helping businesses and the accounting community proactively comply and enhance transparency.
Key legal basis regarding entities required to have their financial statements audited in 2026.
In 2026, the legal framework governing auditing activities in Vietnam will still be based on the backbone of Article 37 of the Law on Independent Auditing, combined with the latest guiding circulars from the Ministry of Finance to ensure compatibility with International Financial Reporting Standards (IFRS)Identifying entities that are required to have their financial statements audited requires a deep understanding of the different categories of public interest entities and their equity sizes.
Current laws impose very strict requirements regarding objectivity; accordingly, auditing firms must ensure absolute independence from their clients, which is a mandatory requirement. audit of financial statementsThis strict enforcement aims to protect the legitimate interests of all stakeholders, from minority shareholders and credit institutions to tax authorities and the government, helping to prevent financial shocks that could have cascading effects on the national economy.
Independent Auditing Law and the Trend Towards Transparency in 2026
The Independent Auditing Act serves as a guiding principle for all financial control activities. For entities required to have their financial statements audited, this law is not only an enforcement tool but also a standard framework for businesses to self-assess and improve their accounting systems towards professionalism and standardization.
Decree 17/2012/ND-CP and its most recent amendments.
This decree remains an important basis for implementation, clarifying the list of types of entities, with particular emphasis on FDI enterprises. According to the updated regulations for 2026, all legal entities with foreign investment in Vietnam are automatically subject to mandatory financial statement audits, regardless of revenue or existing workforce size.
Detailed list of entities currently required to have their financial statements audited.
State management agencies have strengthened the review of entities subject to mandatory audits using a centralized data system. Incorrect identification or omission of entities required to have their financial statements audited in 2026 will be automatically flagged by the system and lead to specialized inspections by relevant ministries and agencies.
| No. | Actual unit type in 2026 | Core legal basis |
| 1 | Foreign direct investment (FDI) enterprises | Law on Independent Auditing & Decree 17 |
| 2 | Credit institutions, branches of foreign banks | Law on Credit Institutions |
| 3 | Financial institutions, insurance companies, reinsurance companies | Insurance Business Law |
| 4 | Public companies, organizations listed on the HOSE/HNX stock exchanges. | Securities Law |
| 5 | State-owned enterprises hold 100% of charter capital. | Law on State Capital Management |
| 6 | State-owned enterprises hold more than 50% voting rights. | Decree 17/2012/ND-CP |
| 7 | Completed public investment projects using budget funds. | Law on Public Investment |
Foreign direct investment (FDI) group of businesses
In Vietnam, Foreign direct investment (FDI) enterprises Financial oversight remains a central focus of tax supervision policies. As entities required to undergo financial statement audits, these businesses must demonstrate the actual flow of investment capital and the legality of payments made to foreign partners. This is particularly important in 2026 as tax authorities intensify the application of data-driven risk management mechanisms.
Any changes in capital, share transfers, or ownership structure within FDI enterprises must be truthfully reflected in their financial statements. Being subject to mandatory financial statement audits helps FDI enterprises protect themselves against accusations of tax evasion or transfer pricing, paving the way for them to benefit from double taxation avoidance agreements.
Credit institutions and financial funds
In 2026, as the Vietnamese banking system undergoes a significant transformation in accordance with Basel III standards, credit institutions It is even more crucial to strictly fulfill the role of being a subject of mandatory financial statement audits. The audit report now not only confirms deposit balances but also assesses the quality of assets and the level of risk of non-performing loans.
Transparency in the financial sector, where entities are required to have their financial statements audited, is the "lifeblood" of the economy. Without fully accepted audit reports, these institutions would lose the ability to raise capital in the interbank market and would face restrictions on credit growth imposed by the State Bank of Vietnam.
Listed companies and the stock market in 2026
The Vietnamese stock market is aiming for an upgrade to emerging market status in 2026. To meet this requirement, listed companies and securities firms – The group of entities required to have their financial statements audited – must strictly adhere to International Financial Reporting Standards (IFRS). The audit report serves as "solid evidence," helping investors and financial institutions make accurate disbursement decisions.
Full compliance with auditing obligations helps limit the risk of securities price manipulation and ensures market transparency. In 2026, the State Securities Commission (SSC) will strengthen direct supervision of both auditing firms and audit files of listed companies and securities firms to reinforce discipline and market confidence.
Regulations on controlling state capital and key projects.
In 2026, Vietnam will continue to accelerate the disbursement of public investment for strategic infrastructure. Accordingly, project management boards and State-owned enterprises and state capital Playing a key role, this sector is subject to mandatory audits of financial statements or investment capital settlement reports. Transparency in this area helps voters and the government effectively monitor the use of public funds.
Auditing regulations for state-owned enterprises have been detailed to prevent asset losses at large corporations. When an enterprise is subject to mandatory financial statement audits, all public procurement, divestment, or merger transactions must be verified by independent auditors regarding market value and the validity of the process.
State-owned enterprises (over 50%)
Not only state-owned enterprises (100%), but also entities with state capital holding more than 50% voting rights are subject to mandatory financial statement audits. This regulation protects the interests of the State in partially privatized joint-stock companies that still retain significant public assets.
Auditing the final accounts of completed public investment projects.
All Group A projects and nationally important projects to be completed in 2026 are subject to mandatory financial statement audits (final settlements). Audits help determine the true value of the project, eliminate "fictitious" costs, and serve as the basis for approving final settlements and contract terminations between the investor and the contractor.
Schedule and responsibilities for entities required to have their financial statements audited.
To ensure a smooth audit process, entities subject to mandatory financial statement audits need to plan well in advance. Based on practical experience in 2026, businesses typically begin signing audit contracts from the third quarter to carry out preliminary audit procedures and witness inventory counts at the end of the fiscal year.
Failure to adhere to this roadmap will make it difficult for businesses to find reputable auditing firms during peak audit season. Furthermore, legal liability for entities required to have their financial statements audited rests not only with the business entity but also with the personal responsibility of its legal representative.
Deadline for submitting and publishing the 2026 report.
Typically, the deadline for entities required to have their financial statements audited to be submitted to the authorities is 90 days after the end of the fiscal year (or March 31, 2026, for fiscal years coinciding with the calendar year). For listed companies, this deadline may be shorter or may require the submission of quarterly review reports.
The role of the Chief Accountant in the audit process.
In organizations subject to mandatory financial statement audits, the chief accountant is primarily responsible for preparing documentation, explaining accounting entries, and reconciling data with auditors. Professional collaboration between accounting and auditing ensures that reports are released on time and accurately reflect the organization's financial situation.
Consequences of failing to comply with regulations regarding entities required to have their financial statements audited.
Entering 2026, the penalties for auditing violations have been significantly increased to deter offenders. Businesses that intentionally evade their mandatory financial statement audit obligations may face the suspension of their tax identification number or the termination of their international e-commerce transactions.
| Violations (Updated 2026) | Estimated administrative fine | Additional consequences |
| No annual report audit was conducted. | 40 – 50 million VND | Publicly disclose names on the Ministry of Finance's portal. |
| Submitting audit reports three months or more late. | 20 – 30 million VND | Downgrade of credit ratings at banks |
| Incomplete documentation is hindering the auditors. | 10 – 20 million VND | Immediate comprehensive tax audit |
Risks of loan and tender rejection.
Large project tenders in 2026 consistently require audited financial statements for the three most recent years. If a company subject to mandatory financial statement audits fails to provide these documents, it will be automatically disqualified from the preliminary selection process, losing valuable business opportunities.
Impact on corporate income tax settlement
In 2026, the tax authorities will not accept corporate income tax returns from entities required to have their financial statements audited if those statements have not been audited. This means that businesses risk being charged late payment penalties and fined for invalid tax declarations.
The strategic value of independent auditing (Beyond the mandatory aspect)
From a modern management perspective in 2026, becoming a company required to have its financial statements audited should be seen as an opportunity rather than a burden. An audited report is a "health certificate" that gives businesses confidence when negotiating with venture capital funds or participating in mergers and acquisitions (M&A).
In addition, the auditing process for entities required to have their financial statements audited often includes a tax risk review. Auditors will help businesses identify invalid expenses, allowing for timely adjustments to avoid significant tax arrears when tax authorities conduct a subsequent inspection.
Enhancing transparency and corporate governance.
The presence of independent auditors at entities required to audit their financial statements creates an effective cross-monitoring mechanism. This helps prevent personal gain within the company and ensures maximum protection of the interests of non-direct shareholders.
Supporting businesses in accessing IFRS and international standards.
In 2026, when Vietnam widely adopts IFRS, auditing firms will play a leading role. For entities required to have their financial statements audited, training and guidance from professional auditors will help accounting departments improve their skills and prepare for the global economic arena.
MAN – Master Accountant Network: Your trusted partner for audit services in 2026
In the volatile financial services market of 2026, finding an auditing firm that not only understands the law but also has a commitment to partnering with businesses is crucial. MAN – Master Accountant Network is proud to be a pioneer in applying technology. digital auditThis helps optimize time and costs for entities that are required to have their financial statements audited.
At MAN, your company will experience financial statement auditing services that meet international standards. We not only provide audit reports to meet the legal requirements of entities mandated to audit financial statements, but also offer consulting solutions. financial statement auditing services This strategy helps businesses optimize cash flow and minimize tax risks in the most sustainable way.
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
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
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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.
Addressing common questions regarding entities required to have their financial statements audited in 2026.
Do representative offices of foreign companies need to be audited?
Representative offices do not conduct direct business in Vietnam, so they are generally not required to have their financial statements audited. However, if these offices engage in commercial activities or are upgraded to business branches, the obligation to audit will arise immediately.
Should small and medium-sized enterprises (SMEs) undergo voluntary audits?
Although not on the list of entities required to have their financial statements audited, SMEs aiming for listing on the stock exchange or securing large bank loans should consider voluntary audits. This helps to clean up financial data early on, saving costs and time as the business scales up.
Is it permissible to change the auditing firm annually?
The law does not prohibit changing auditing firms. However, for entities required to have their financial statements audited for public interest, changing auditing firms too frequently can raise concerns about stability and transparency. Businesses should choose a long-term partner whose auditors have in-depth knowledge of the entity's specific industry.
