Auditing financial statements is not only a legal requirement but also a crucial tool for businesses to ensure transparency and credibility in the market. A prime example is the case of Vinaconex Infrastructure Investment and Development Joint Stock Company (Vinaconex 34) being audited. A fine of 92.5 million VND was imposed. by the State Securities Commission in October 2025. The reason is that the company failed to publish audited financial statements from 2022 to 2024, as well as annual reports and corporate governance reports for the same period.
Failure to disclose financial information as required not only violates the law but also seriously impacts a company's reputation and ability to raise capital. For listed companies or those with major shareholders, regular financial audits ensure transparency, enhance investor confidence, and minimize legal risks. The case of Vinaconex 34 clearly demonstrates the importance of complying with information disclosure obligations in business operations.
Overview of financial statement auditing
What is auditing?
Auditing is an independent evaluation process aimed at verifying the accuracy and integrity of an organization's financial information, records, and accounting books. The primary goal of auditing is to ensure that all transactions, items, and financial statements are recorded and presented fairly, without distortion or fraud.
Audits can be conducted in two main forms:
- Internal audit: conducted by the company's own audit department. This type of audit focuses on evaluating and improving the effectiveness of internal processes, risk management, and compliance with internal regulations.
- Independent audit: conducted by independent, external auditing organizations. Independent auditors provide an objective opinion on the fairness and accuracy of financial statements, thereby enhancing credibility for stakeholders such as shareholders, investors, and government regulatory agencies.
What is financial statement auditing?
Financial statement auditing is the process of examining, evaluating, and verifying the accuracy and integrity of financial statements prepared by a business. This process is carried out by independent auditors – individuals with expertise, professional certifications, and no vested interest in the audited business.
Auditing financial statements helps businesses ensure that the figures on these reports are presented fairly, free from material misstatements or potential fraud, and meet disclosure requirements for shareholders, tax authorities, banks, and other stakeholders.
Objectives of auditing financial statements
Financial statement audits are conducted to provide an independent opinion on the accuracy and fairness of the information presented in a company's financial statements. The primary objective is to ensure that the financial statements accurately and fairly reflect the company's financial position, business performance, and cash flow in accordance with current accounting standards and legal regulations. In addition, financial statement audits also aim for the following specific objectives:
- Verifying the reliability of accounting data: This helps management, investors, banks, and other stakeholders have a reliable basis for making economic decisions.
- Detecting and preventing errors and fraud: Through the examination, comparison, and reconciliation of accounting documents and records, auditors can promptly detect potential irregularities and fraud.
- Assessing compliance with accounting laws and standards: Audits help businesses identify inconsistencies in the application of accounting regulations, thereby enabling adjustments and improvements to their financial management systems.
- Enhancing financial transparency and credibility: Audited financial statements increase trust in the eyes of partners, investors, shareholders, and government regulators.
The role of financial statement auditing in businesses.
Auditing financial statements plays a crucial role in ensuring the transparency and reliability of a company's financial information. Through an independent review process, audits provide businesses and stakeholders with a basis for accurately assessing their financial situation and operational efficiency. Specifically, financial statement audits have the following roles:
- Providing objective evidence: Helps confirm the accuracy and reasonableness of accounting data and financial reports.
- Support for management decision-making: Providing reliable information to leadership in strategic planning, cost control, and operational efficiency improvement.
- Increased credibility with external parties: Audited financial statements build trust with investors, shareholders, banks, and regulatory authorities.
- Risk and error detection: Helps businesses make timely adjustments, prevent fraud, and comply with legal regulations.
Standards and legal regulations regarding the auditing of financial statements.
To conduct a financial statement audit in a proper and professional manner, businesses and auditors need to comply with Vietnamese Auditing Standards (VSA) and related legal documents. Below is a summary of the important documents:
| Legal documents / Standards | Main content | Issuing authority |
| Law on Independent Auditing 67/2011/QH12 | Regulations governing the organization, conditions for practicing, scope, rights, and obligations of auditors and auditing firms. | Vietnam National Assembly |
| Decree 17/2012/ND-CP | Guidelines for implementing the Law on Independent Auditing, stipulating that businesses must have their financial statements audited, and the conditions for practicing the profession. | Government |
| Circular 214/2012/TT-BTC | The Vietnamese Auditing Standards (VSA) system is issued and applies to auditors and audit firms. | Ministry of Finance |
| Accounting Law 88/2015/QH13 | Regulations on the preparation and presentation of financial statements, and the legal basis for auditing. | Vietnam National Assembly |
| Circular 200/2014/TT-BTC | Guidelines for corporate accounting, including the system of accounting records and financial reporting. | Ministry of Finance |
Subjects of financial statement audit
Auditing financial statements is conducted on specific entities, organizations, and financial items to ensure their accuracy, fairness, and compliance with the law. Identifying the audit subject helps auditors focus their examination on key areas, detect errors, and identify potential risks.
| Audit subject | Audit content | Note |
| Businesses and economic organizations | Annual financial statements, consolidated financial statements, branch financial statements. | This includes joint-stock companies, limited liability companies, and state-owned enterprises. |
| Financial items | Cash, bank deposits, accounts receivable, accounts payable, inventory, fixed assets. | Verify accuracy, existence, and reasonableness. |
| Revenue, expenses, profit | Verify the recording, accounting, and classification according to accounting standards. | Determine whether the financial reporting figures accurately reflect the business situation. |
| Contracts and related documents | Sales contracts, loan agreements, invoices, payment vouchers, and other accounting documents. | Ensure the legality and accuracy of the recorded transactions. |
| Special or high-risk transactions | Related party transactions, provisions, bad debts. | Verify the reasonableness and compliance with accounting standards. |
Types of financial statement audits
Auditing financial statements is done in several ways. different typesDepending on the purpose, subject, and scope of the audit. The main types include:
| Type of audit | Purpose and main content |
| Mandatory audit | Businesses must comply with legal regulations (e.g., public companies, state-owned enterprises). The purpose is to ensure the accuracy and legal compliance of financial reporting. |
| Independent audit | Performed by an external organization or auditor, unrelated to the business. Its purpose is to provide an objective opinion on the financial statements. |
| Internal audit | Performed by the company's own audit department. Focuses on evaluating the effectiveness of internal controls, detecting errors and fraud, and improving processes. |
| Audits on special request | Auditing a portion of financial statements or a specific issue as requested by shareholders, banks, or regulatory authorities. |
| Consolidated audit | Auditing the consolidated financial statements of the group or parent company and its subsidiaries ensures that the aggregated information accurately reflects the overall financial situation of the entire group. |
Financial statement audit process
The financial statement audit process is carried out in strict steps to ensure the accuracy, fairness, and compliance with accounting standards of a company's financial statements. Specifically, the process includes the following stages:
Audit planning
This is the initial step, helping auditors understand the business operations, internal control environment, and potential risks of the enterprise. Auditors will determine the scope, objectives, timeframe, and methods of the audit, and assign appropriate personnel to ensure the work is carried out effectively.
Perform audit procedures
At this stage, auditors gather audit evidence through examination, comparison, confirmation, observation, or analysis of accounting data. The goal is to assess the accuracy and fairness of the items in the financial statements, as well as to detect any errors or fraud (if any).
Summarize and evaluate audit results.
After completing the procedures, the auditor compiles the results, compares them with standards, and provides comments on the reasonableness of the financial statements. Simultaneously, any issues that arise will be analyzed, risks assessed, and corrective measures proposed.
Prepare and issue audit reports.
Finally, the auditor prepares an audit report – the official document expressing an independent opinion on the company's financial position. The report may issue an unqualified opinion, a qualified opinion, a disclaimer, or a refusal of opinion, depending on the extent of the errors discovered.
Financial reporting services at MAN – Master Accountant Network
At MAN – Master Accountant Network, we provide professional, accurate, and fully compliant financial reporting services, helping businesses effectively manage their finances and enhance their reputation with investors, partners, and tax authorities.
Scope of financial reporting services at MAN – Master Accountant Network
With years of experience in accounting, auditing, and taxation, MAN – Master Accountant Network provides comprehensive financial reporting services, meeting the needs of all types of businesses. We accompany businesses throughout the entire process, from preparing and reviewing to finalizing financial reports, ensuring compliance with legal regulations and Vietnamese accounting standards (VAS).
| Service content | Detailed description |
| Prepare annual, quarterly, and monthly financial reports. | Prepare periodic financial statements in accordance with Vietnamese Accounting Standards (VAS), accurately reflecting the financial situation and business results of the enterprise. |
| Check and adjust accounting figures. | Review, compare, and correct accounting data to ensure accuracy, reasonableness, and compliance with current regulations. |
| Consolidated financial statements | Consolidating financial reports for corporations, parent-subsidiary companies, or units with branches helps to fully reflect overall operations and financial performance. |
| Financial data optimization consulting | We assist businesses in restructuring and presenting financial data for auditing purposes, obtaining bank loans, raising investment capital, or listing shares. |
Benefits of choosing MAN – Master Accountant Network
By choosing MAN – Master Accountant Network as your partner in preparing and auditing financial statements, your business not only receives professional service but also assurance of quality, confidentiality, and optimal efficiency. With the motto "Accuracy – Transparency – Efficiency," MAN offers the following practical benefits:
- Our team of experienced professionals in accounting, auditing, and taxation are always up-to-date with the latest regulations to ensure that financial data accurately reflects the company's operations.
- Strict adherence to accounting regulations and financial reporting standards helps businesses avoid the risk of errors and legal violations.
- We ensure the absolute confidentiality of business information, guaranteeing that all data and financial records are processed securely and used only for professional purposes.
- Save time and costs, especially during tax season, when all processes are optimized to deliver the fastest and most accurate results.
MAN – Master Accountant Network's Commitment
At MAN – Master Accountant Network, we understand that financial reporting is not only a legal obligation, but also a strategic management tool, reflecting the operational capabilities and development direction of a business.
We ensure that all financial reports prepared by MAN are based on Vietnamese Accounting Standards (VAS) and fully comply with current legal regulations. Every figure is carefully checked, compared, and verified to accurately reflect the financial situation, business results, and profitability of the enterprise.
Furthermore, MAN goes beyond simply completing reports – it also partners with businesses in analyzing, evaluating, and optimizing financial metrics. This enables management to make more accurate management decisions, better control risks, and guide long-term strategic development.
With MAN, each report is not just a collection of numbers, but a comprehensive financial management solution that helps businesses enhance their competitiveness, increase capital efficiency, and move towards sustainable development.
The process for using financial statement audit services at MAN – Master Accountant Network
To ensure that every audit service at MAN – Master Accountant Network is performed professionally, transparently, and with optimal efficiency, we apply a standardized, detailed, and easy-to-follow process. This helps businesses clearly understand the steps, coordinate conveniently, and have peace of mind regarding the quality and accuracy of their financial reports.
| Step | Detailed content |
| Step 1: Receiving requests and providing initial consultation | Businesses contact MAN, providing basic information about their size, type of operations, and audit needs. Consultants will then guide them through the process, service scope, timeline, and estimated costs. |
| Step 2: Sign the service contract | The two parties sign an audit contract, clearly defining their rights and obligations, the scope of the audit, the timeframe, costs, and confidentiality clauses. |
| Step 3: Gather and evaluate information | The company provides accounting books, vouchers, financial statements, and related documents. The auditor conducts a preliminary assessment of the internal control environment and potential risks. |
| Step 4: Conduct a detailed audit | Auditors conduct checks, comparisons, confirmations, and analyses of figures, assessing the accuracy and fairness of financial statements. Any issues that arise will be recorded and discussed directly with the business. |
| Step 5: Summarize the results and prepare the report. | After the audit is completed, the results are compiled, analyzed, and an audit report is prepared with detailed assessments, recommendations, and comments. |
| Step 6: Present and hand over the report | The auditor presents the report to the business, explaining the findings and recommendations. The official report is delivered as agreed in the contract, and a secure backup copy is also stored. |
| Step 7: Post-audit support | MAN advises businesses on resolving identified issues, improving internal accounting processes, and preparing for subsequent audits. |
Important considerations when auditing financial statements.
When conducting a financial statement audit, businesses and auditors need to pay special attention to the following key factors to ensure that the audited financial statements accurately reflect the financial position and operating results:
| Note | Detailed description |
| Prepare all necessary documents and records. | Businesses need to provide complete accounting records, invoices, documents, and contracts. Missing documents or invalid data can directly impact the audit of financial statements. |
| Comply with accounting standards and laws. | The figures must comply with Vietnamese Accounting Standards (VAS) and relevant legal regulations. Errors must be corrected before the financial statements are audited. |
| Identify risks and material items. | Auditors focus on high-risk items or material figures to ensure the financial statement audit accurately assesses the situation. Businesses need to provide detailed explanations for these items. |
| Communication and coordination during the audit process. | Businesses need to cooperate and exchange complete information with auditors to ensure that the financial statement audit is conducted smoothly and thoroughly. |
| Refer to post-audit recommendations. | After completing the financial statement audit, businesses should implement the auditor's recommendations to improve accounting processes and enhance financial management efficiency. |
Conclude
Auditing financial statements is a crucial tool that helps businesses ensure the integrity, fairness, and transparency of their financial management. Through the auditing process, errors and potential risks are detected and corrected promptly, helping businesses strengthen their reputation with partners, investors, and regulatory agencies.
To give businesses peace of mind and optimize benefits from financial statement auditing servicesContact MAN – Master Accountant Network today. With a team of experienced professionals, comprehensive services, and a commitment to absolute confidentiality, MAN will accompany you on your journey to building transparent, effective, and sustainable finances.
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 Auditing Financial Statements
What is financial statement auditing?
Financial statement auditing is the process of independently examining and evaluating a company's financial books, documents, and reports to ensure their accuracy, fairness, and compliance with accounting standards and current legal regulations.
Who can perform an audit of financial statements?
This process can be carried out by independent auditors, professional audit firms, or the internal audit department of a business, depending on its size and needs.
When does a business need its financial statements audited?
Businesses are required to have their financial statements audited as mandated by law, especially before filing tax returns, seeking investment capital, obtaining bank loans, or preparing consolidated financial statements.
What is the significance of an audit report on financial statements?
An audit report provides an independent assessment of the fairness and accuracy of financial statements, helping businesses to be transparent with information and enhance their reputation with partners, investors, and regulatory authorities.
Did the financial statement audit reveal any errors?
Yes, auditing financial statements helps detect errors, omissions, or potential risks in accounting, allowing businesses to make timely adjustments and improve financial management.
What are the costs of auditing financial statements?
The cost of conducting a financial statement audit depends on the size and nature of the business's operations and the scope of services. At MAN, we provide detailed consultations to help businesses choose the most suitable service package.
