The results of a financial statement audit are the highest value measure confirming the accuracy and reasonableness of economic data. In the context of integration, possessing a clean audit report is not only an obligation but also a requirement. Law on Independent Auditing No. 67/2011/QH12 It also serves as a "passport" that helps businesses access bank capital and attract investors.
In Vietnam, circulars such as 200/2014/TT-BTC good 133/2016/TT-BTC While accounting methods are strictly regulated, the VSA standards are the ultimate verification tool. Understanding the nature of financial statement audit results helps management identify potential risks and adjust operational strategies more effectively. Let's explore the legal aspects in detail below.
The nature and importance of financial statement audit results.
The results of a financial statement audit not only confirm accounting figures but also have significant legal and managerial value. This is the independent opinion of the auditor regarding the accuracy and fairness of the financial statements according to current standards, helping to improve the reliability of financial information, supporting businesses when dealing with tax authorities, banks, and partners, while also mitigating legal and financial risks.
Definition from a legal perspective
The results of a financial statement audit are the written confirmation by the auditor and the audit firm of material misstatements. According to Vietnamese Auditing Standard No. 700 (VSA 700), these results must be presented clearly and objectively in the audit report to serve the information users.
The core purpose of audit results
The primary purpose of a financial statement audit is to enhance user confidence in financial information. When reports are validated by reputable organizations, revenue and profit figures become more transparent to partners and banks.
Secondly, the results of financial statement audits serve as a legal basis for the Tax authorities to review budgetary obligations. Although not a replacement for tax settlement, the adjusting entries made by auditors often help businesses effectively mitigate the risk of tax arrears or administrative penalties.
Types of opinions that shape the audit results of financial statements.
Opinion classifications are based on VSA standards 700, 705, and 706. Each opinion reflects a different financial "health status" of the audited entity, ranging from fully transparent to critically risky.
| Type of opinion | Main features | Impact on businesses |
| Full acceptance | The financial statements present a fair and reasonable view in all material respects. | Optimizing performance and increasing credibility with banks and investors. |
| Except opinions | There are errors or missing evidence, but these do not permeate the entire financial statement. | A detailed explanation of the excluded item is required when applying for a loan. |
| Opposing opinion | The error was material and widespread, with serious consequences. | Loss of credibility may result in suspension of securities trading. |
| Refusing to comment | It was not possible to gather sufficient evidence due to scope limitations. | Suspicions of potential for continued operation or fraud. |
Full acceptance
This is the ideal financial statement audit result that every business strives for. This opinion confirms that the report fully complies with the current financial reporting framework in Vietnam, ensuring security for all parties involved.
An audit opinion is not a fully unqualified opinion.
When there are factors affecting integrity, the audit results financial reports The financial statements will be reclassified as excluded, contradictory, or rejected. This is usually due to violations of inventory accounting principles, provisioning, or revenue recognition in the wrong period as required.
The process of establishing the results of a financial statement audit.
To deliver accurate results, the auditing firm must go through a rigorous process consisting of three main stages. Adherence to this process helps ensure the highest level of expertise and reliability for the company's data.
Planning and risk assessment phase
Auditors will examine the internal control system and assess the risk of material misstatement. Determining materiality is crucial to forming the final audit conclusion of the financial statements, deciding the limits of acceptable misstatements.
Audit execution phase (Fieldwork)
Techniques such as sending confirmation letters, witnessing inventory checks, and examining original documents are applied. All evidence collected at this stage directly forms the basis for constructing the financial statement audit results, ensuring that all figures are based on factual evidence.
Report compilation and publication phase
After discussing the adjusting entries, the auditor will finalize the audit results of the financial statements. If the company agrees to correct the errors discovered, the audit opinion may be improved from a qualified opinion to a fully unqualified opinion.
How to quickly find the results of a financial statement audit.
Users can access audit results of financial statements through official channels to ensure their authenticity. This helps investors and partners make decisions based on independently verified data.
- Electronic Tax Portalthuedientu.gdt.gov.vn): This is where businesses submit their audited reports along with their corporate income tax return.
- UBCKNN system: This applies to publicly traded companies where the results of financial statement audits are required to be publicly and transparently disclosed.
- Business website: The "Shareholder Relations" section typically publishes the full annual financial statements that have been reviewed by independent auditors.
Common errors that affect the results of financial statement audits.
According to experts at MAN – Master Accountant Network, several common types of errors can lead to undesirable financial statement audit results, negatively impacting the image and reputation of an entity in the market.
Errors in recording revenue and expenses.
Recording unearned revenue or omitting accrued expenses are common errors. These adjustments directly affect the net profit figure in the audited financial statements, altering the actual business results.
Errors in assets and liabilities
Failure to make provisions for obsolete inventory or bad debts as required by Circular 48/2019/TT-BTC is very common. These discrepancies often lead to exceptions in the results. audit of financial statements (Financial statements), which reduces the credibility of the report.
Conclude
The results of a financial statement audit serve as proof of a company's transparency and sustainability. Possessing high-quality audit results helps businesses optimize their financial structure, strengthen trust with partners, and proactively manage legal and tax risks effectively.
If you are concerned about errors affecting the results of your financial statement audit, let MAN – Master Accountant Network be your partner. With a team of experienced professionals, MAN provides financial statement auditing services Professional service, helping to review systems and advise on optimal solutions in accordance with the law. Contact MAN today for dedicated support.
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
- Legal aspects: Work permit services, Business registration certification services, Investment Certificate
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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.
Frequently Asked Questions about Financial Statement Audit Results
Which businesses are required to have their financial statements audited?
According to Decree 17/2012/ND-CP, FDI enterprises, public companies, credit institutions, and state-owned enterprises are required to have their annual financial statements audited to ensure transparency and openness.
Can the results of a financial statement audit replace a tax audit?
No. Independent audits confirm fairness and integrity, while tax audits assess compliance with the law. However, a good audit result will make working with the tax authorities smoother and faster.
What should a business do if it disagrees with the results of the financial statement audit?
The board of directors has the right to explain and provide further evidence. If a consensus cannot be reached, the company may change the auditing firm for the next period, but must report the specific reasons to the regulatory authorities.
