Auditing listed companies is a mandatory legal obligation, specifically stipulated in the regulations. Securities Law 2019 and Independent Auditing Law 2011Public companies listed on exchanges such as HOSE, HNX, or the UPCoM system must publicly disclose audited financial statements by qualified auditing organizations.
Conducting audits according to proper standards not only meets the stringent requirements of the State Securities Commission but also protects the interests of shareholders. Proactively reviewing tax risks and accounting errors helps businesses maintain their reputation and investor confidence in the market.
Summary of key aspects of auditing listed companies.
Auditing listed companies is the process of examining, evaluating, and verifying the accuracy and fairness of financial statements prepared by qualified independent auditing firms for companies listed on the stock market.
- Main task: Provide independent opinions on financial statements, and examine compliance with accounting, tax, and disclosure laws and regulations.
- Applicable subjects: All joint-stock companies listed on HOSE, HNX, and businesses registered for trading on UPCoM.
- Time of execution: Semi-annual audit (reviewed financial statements for 6 months) and annual audit (audited financial statements for 12 months).
- Core purpose: Protecting investor interests, ensuring transparency in the financial market, and optimizing tax risk management for businesses.
What is auditing for listed companies and what are the current legal regulations?
The concept of auditing listed companies is closely linked to the verification of the accuracy of accounting figures and financial statements. This activity is carried out by independent auditors holding professional certifications as prescribed by the Ministry of Finance. Audited financial statements serve as the basis for regulatory authorities and investors to assess the financial health of the company.
The legal framework governing this activity includes the Securities Law 2019. Independent Auditing Law 2011, Decree 155/2020/ND-CP and Circular 96/2020/TT-BTC on information disclosure. Listed companies may only choose auditing firms that are on the list approved annually by the State Securities Commission.
Businesses that violate the deadline for publishing financial reports or have serious discrepancies in their data risk being fined between 50 million and 150 million VND according to Decree 156/2020/ND-CP. In addition, their shares may be placed under warning, control, or trading suspension.
| Comparison criteria | Auditing of listed companies | Standard business audit |
| Legal basis | Securities Law, Independent Auditing Law, Circular 96/2020/TT-BTC | Independent Auditing Law, Accounting Data Law |
| Auditing unit | Must be on the list approved by the State Securities Commission. | Legitimate independent auditing firm |
| Audit frequency | Annual audit and semi-annual review are mandatory. | Usually only the year is audited. |
| Level of transparency | Fully disclosed to the public and shareholders. | Internally or submitted to a government agency. |
| Legal risks associated with violations. | Suspension of trading, delisting, and heavy administrative penalties. | Administrative penalties in accordance with accounting and tax regulations. |
What tax and financial risks do listed companies face during an audit?
During implementation corporate auditing In the listing process, the most common risk is the mistimed recognition of revenue. Rushing to recognize revenue before meeting the requirements of Vietnamese Accounting Standards (VAS) leads to discrepancies between financial statements and tax reports.
Risks related to related-party transactions under Decree 132/2020/ND-CP are also a focus of inspection. Many listed companies have subsidiaries and affiliated companies but do not properly document transfer pricing as required. This leads to a high risk of tax assessment and penalties for late payment during tax audits.
Expenses lacking proper invoices or documentation, or those not related to business operations, are often excluded by auditors. This increases current corporate income tax expenses and directly impacts the net profit reported to shareholders.
Experts at MAN, with 30 years of experience, note that a lack of alignment between internal control systems and tax filings is a major cause of qualified audit opinions. A qualified financial report will reduce stock value and severely impact a company's ability to raise capital.
What are the steps involved in a standardized audit process for listed companies?
The auditing process for listed companies requires thorough preparation and strict adherence to Vietnamese Auditing Standards (VSA). Applying standardized procedures helps businesses save time and minimize data errors.
- Step 1: Develop an audit plan and conduct an initial risk assessment: Auditors examine a company's business model, legal environment, and accounting system. This step identifies the materiality and risk of errors or deficiencies in key accounts such as inventory, accounts receivable, and work-in-progress.
- Step 2: Test the internal control system: The audit team assesses the effectiveness of the revenue and expenditure approval process, inventory management, and sales. If the internal control system is functioning effectively, the auditors will reduce the number of detailed inspection procedures.
- Step 3: Perform basic inspection procedures: This procedure includes inventory of cash and fixed assets, reconciliation of accounts payable, and review of major economic contracts. Auditors will examine samples of receipts, disbursements, and inventory records to ensure their validity.
- Step 4: Review tax obligations and adjust accounting records: The audit team collaborates with the accounting department to conduct a detailed review of VAT, corporate income tax, and personal income tax obligations. From MAN's perspective, this step helps businesses identify risky expenses early and make timely adjustments before finalizing the financial statements.
- Step 5: Release the audit report and support the disclosure of information: The auditing firm drafts the report and discusses key points with the Executive Board and the Board of Directors. After reaching an agreement, the official audit report is released for the company to submit to the State Securities Commission and the Stock Exchange.
Insights from an expert with 30 years of experience auditing listed companies.
Auditing listed companies is not simply about checking the numbers in the books. It's a comprehensive assessment of an organization's risk management capabilities and compliance. Companies need to proactively review their financial systems before the official audit.
Practical experience shows that disagreements between corporate accountants and auditors often stem from misunderstandings of tax regulations and accounting standards. For example, the creation of provisions for inventory devaluation or provisions for doubtful accounts requires objective evidence, not just subjective estimates.
Businesses should establish mechanisms for open dialogue with auditing unit Right from the beginning of the accounting period, resolving issues related to asset recognition or financial statement consolidation early will help avoid a backlog of work at the end of the year, putting pressure on both parties.
The solution from MAN – Master Accountant Network helps businesses closely connect internal accounting practices with the requirements of the market. independent auditEffective tax risk management, coupled with sound financial auditing, is key to helping listed companies maintain sustainable growth.
MAN – Master Accountant Network provides auditing services for listed companies.
MAN – Master Accountant Network provides in-depth consulting and auditing solutions for public companies and businesses preparing for IPOs. The team of experts at MAN holds CPA Vietnam and ACCA certifications and has over 30 years of practical experience in auditing and tax consulting.
We understand the time pressure of information disclosure and the risks involved in tax audits for listed companies. MAN's services focus on thoroughly addressing these risks at their root, supporting businesses in perfecting their accounting systems and optimizing tax costs in accordance with the law.
MAN serves clients nationwide, with a particular focus on key economic regions such as Ho Chi Minh City (District 1, District 7, Thu Duc City), Binh Duong, Dong Nai, and Hanoi. Our local expertise enables us to work effectively with government agencies.
Below is a reference fee schedule for auditing services for listed companies. Please note that actual fees will be adjusted based on asset size, revenue, number of subsidiaries, and the complexity of each case.
| Business size (Revenue/year) | Annual audit fee (VND) | Semi-annual review fee (VND) | Estimated time of implementation |
| Under 100 billion VND | 80.000.000 – 120.000.000 | 40.000.000 – 60.000.000 | 7-10 business days |
| From 100 billion to 500 billion VND | 120.000.000 – 250.000.000 | 60.000.000 – 130.000.000 | 10-15 business days |
| From 500 billion to 1,500 billion VND | 250.000.000 – 450.000.000 | 130.000.000 – 220.000.000 | 15-20 business days |
| Over 1.5 trillion VND or Group | Survey and quote separately. | Survey and quote separately. | According to the contract agreement |
Note: The above price list is for reference only. Detailed costs will be agreed upon after MAN conducts a thorough review of the company's financial records.
Real-world Case Study: Optimizing Tax Risk for Listed Retail Businesses in Ho Chi Minh City
A listed retail company in District 1, Ho Chi Minh City, faces the risk of having 15 billion VND in promotional and sponsorship expenses disallowed during the annual audit. Due to a lack of documentation verifying the program's completion as required by the Commercial Law, the auditors initially planned to issue a qualified opinion.
The team of experts at MAN directly participated in reviewing all transaction documents. We advised the business to supplement the necessary reconciliation statements, photographic evidence, and promotional notification documents with the Department of Industry and Trade.
As a result, the entire 15 billion VND expense was accepted as reasonable by the auditors. The company's financial statements were fully approved, helping the stock price maintain its growth momentum and eliminating the risk of being subject to retroactive corporate income tax collection.
Conclude
Auditing listed companies plays a crucial role in ensuring transparency of financial information and enhancing the company's reputation in the stock market. Thorough preparation of accounting records and careful review of tax obligations helps companies avoid administrative penalties and a decline in investor confidence.
Choose MAN – Master Accountant Network to partner with your business. With a team of experts boasting over 30 years of experience and a deep understanding of tax risk management practices in Vietnam, MAN is committed to providing the safest, most transparent, and optimal audit solutions. Contact MAN today via hotline or website for expert advice on your upcoming audit.
Tax services at MAN – Master Accountant Network
- Tax accounting services
- Tax consulting services
- Tax settlement services
- Tax reporting services
- VAT refund service
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
- E-mail: man@man.net.vn
- Google Business Profile: View MAN – Master Accountant Network's Google Business Profile
- LinkedIn Founder: View expert Le Hoang Tuyen's LinkedIn profile.
Responsible for production and professional content review by: Mr. Le Hoang Tuyen – Founder & CEO of MAN – Master Accountant Network, CPA Vietnam with over 30 years of experience in accounting, auditing, taxation, and corporate financial consulting.
Frequently Asked Questions about Auditing Listed Companies (FAQ)
What is the deadline for submitting audit reports for listed companies?
Listed companies must submit audited annual financial statements within 90 days of the end of the fiscal year. Semi-annual review reports must be submitted within 45 days of the end of the first six months of the fiscal year.
Can listed companies choose their own auditing firm?
Businesses are free to choose their auditing firm, but that firm must be on the list of auditing organizations approved by the State Securities Commission for the corresponding fiscal year.
How do qualified audit opinions affect listed companies?
Financial statements with qualified opinions can lead to a stock being placed under warning or control status. If the auditor issues a disclaimer or adverse opinion, the stock may be suspended from trading or subject to mandatory delisting.
Where are the costs of auditing listed companies accounted for?
Audit fees are accounted for as business management expenses (Account 642) and are deductible when determining corporate income tax if there are complete invoices, contracts, and acceptance reports.
What is the difference between a semi-annual financial statement review and an annual audit?
Semi-annual reviews primarily utilize interview procedures and data analysis, and do not require physical inventory checks. Annual audits apply full detailed inspection procedures, asset inventory, and debt confirmation letters.
