Hiring an independent auditing firm is a mandatory requirement for many business groups in Vietnam. Independent Auditing Law 2011Foreign-invested enterprises, public companies, credit institutions, and state-owned enterprises are all subject to annual financial statement audits. Choosing the wrong auditing firm or lacking professional expertise can lead to rejected reports, delays in tax settlement documents, or even tax arrears after an audit.
In the context of stricter tax audits following the 2026-2027 tax year-end settlement, the need to hire independent audit firms extends beyond legal obligations to become a proactive risk management tool. From the perspective of MAN – Master Accountant Network, an auditing, accounting, and tax consulting firm with over 30 years of practical experience in Vietnam, most tax disputes stem from inadequate audit documentation. This article analyzes the process, costs, and selection criteria.
What does it mean to hire an independent auditing firm? Which businesses are required to do so?
Hiring an independent auditing firm means that a business entrusts a qualified auditing organization to conduct an independent review, evaluation, and opinion on its financial statements. According to Article 5 of the Independent Auditing Law 2011, this activity aims to verify whether the financial statements are prepared in accordance with accounting standards, accounting regulations, and relevant legal provisions.
Not all businesses are required to hire an independent auditing firm. Article 37 Independent Auditing Law 2011 and Decree 17/2012/ND-CP Clearly list the groups of entities whose annual financial statements must be audited, including:
- Foreign direct investment (FDI) enterprises.
- Credit institutions and branches of foreign banks in Vietnam.
- Financial institutions, insurance companies, and insurance brokerage firms.
- Public companies, securities issuers, and securities trading organizations.
- State-owned enterprises, except those operating in fields subject to state secrets as stipulated by regulations.
- Large-scale businesses according to Decree 90/2025/ND-CP, meeting at least 2 out of 3 criteria: over 200 employees participating in social insurance on average per year, total revenue over 300 billion VND, total assets over 100 billion VND.
In addition to mandatory auditing, many small and medium-sized enterprises (SMEs) proactively hire independent auditing firms to prepare loan applications, raise investment capital, or for restructuring and capital transfer purposes. This is a proactive step that helps businesses control financial risks before disputes arise.
Legal basis for requiring the hiring of an independent auditing firm.
- Law No. 67/2011/QH12 on Independent Auditing stipulates the conditions for practicing the profession and the subjects required to undergo auditing.
- Decree 17/2012/ND-CP provides detailed guidance on the implementation of the Law on Independent Auditing.
- Decree 41/2018/ND-CP stipulates administrative penalties for violations in the field of accounting and independent auditing.
- Vietnamese Auditing Standards (VSA), issued by the Ministry of Finance, serve as the professional basis for conducting audits.
- Decree 90/2025/ND-CP (April 14, 2025) amends and supplements Decree 17/2012/ND-CP, stipulating that additional groups of large-scale enterprises must undergo mandatory audits and limiting the time for signing audit reports to a maximum of 5 consecutive years for the same entity.
Why should businesses hire an independent auditing firm instead of relying solely on internal accounting?
Internal accountants record and compile data, but they lack the legal standing to verify the accuracy of financial statements before third parties. When a business is required to hire an independent auditor but fails to do so, its financial statements may be rejected by tax authorities, banks, or shareholders, leading to delays in settlement and disbursement of funds.
According to Decree 41/2018/ND-CP, failure to conduct mandatory audits of financial statements may result in administrative penalties, the amount of which depends on the nature of the violation. Besides the penalties, the indirect consequences are often more serious: loan applications may be rejected, foreign partners may lose confidence, or cumulative data discrepancies may arise over many years, leading to increased rectification costs.
Experts at MAN – Master Accountant Network, with over 30 years of practical experience in tax risk management in Vietnam, have noted that many businesses only hire independent auditing firms when the tax settlement deadline is approaching. This leaves auditors insufficient time for in-depth review, increasing the likelihood of overlooking material errors.
What is the process for hiring an independent auditing firm?
A company hiring process independent audit A systematic approach helps businesses control time, costs, and output quality. Below are the standardization steps commonly applied at reputable auditing firms.
- Step 1: Define the scope and objectives of the audit, for example, an audit of the annual financial statements, an audit of equity investments, or a review as requested by investors.
- Step 2: Research and compare independent auditing firms based on their licenses, industry experience, and feedback from previous clients.
- Step 3: The request for quotation and audit proposal should clearly state the scope of work, timeframe, and personnel responsible.
- Step 4: Sign an audit contract, clearly defining the responsibilities of each party, the deadline for issuing the report, and the fee.
- Step 5: Auditors conduct a preliminary survey, assess the internal control system, and develop a detailed audit plan.
- Step 6: Conduct detailed audits, compare documents, verify accounts payable, inventory, and other material items.
- Step 7: A meeting is held to discuss preliminary findings with the company, followed by the issuance of the official audit report and management letter.
Businesses should proactively begin the process of hiring an independent audit firm at least 6 to 8 weeks before the reporting deadline to avoid being bogged down during peak audit season, when large firms are usually fully booked.
See more articles at: Reputable auditing firms: Top 15 leading firms and solutions from MAN
What criteria help businesses choose the right independent auditing firm?
Having a license doesn't automatically qualify every business. When hiring an independent auditing firm, businesses should consider the following criteria before signing a contract:
- The valid professional license is issued by the Ministry of Finance and is publicly available on the list of qualified auditing organizations.
- The audit team consists of auditors holding CPA Vietnam certification or equivalent international certifications, who will directly participate in the audit.
- Practical experience within the company's specific industry is crucial, as each sector has its own unique accounting risks.
- Professional liability insurance protects the company's interests if errors occur on the part of the auditor.
- Transparent pricing with a clear price list helps avoid unexpected costs outside of the contract.
- The accompanying tax consulting services help businesses not only obtain audited reports but also minimize tax risks after final settlement.
See more articles at: Top 10 Reputable and Professional Auditing Service Companies in Ho Chi Minh City
How does MAN – Master Accountant Network support hiring independent audit firms?
The solution from MAN – Master Accountant Network is built on the principle of auditing combined with tax risk management consulting, rather than just issuing reports. MAN's team of experts has over 30 years of practical experience, having handled complex audit situations for FDI companies, manufacturing companies, and commercial and service businesses.
When a business decides to hire independent auditing firm At MAN, the workflow includes a free initial survey, scale-appropriate audit planning, detailed audit execution, and ongoing support in resolving any issues that may arise with the tax authorities after the report is released.
Reference price list for independent audit services at MAN
The cost of hiring an independent auditing firm depends on the size of the business, the number of transactions, and the complexity of the accounting system. Price list for independent audit services The information below is for reference only; actual fees will be assessed and quoted specifically by MAN based on each company's profile.
| Service package | Suitable candidates | Scope of work | Reference fee |
| Basic audit | Small businesses, simple transaction volumes. | Annual financial statement audit according to VSA | From 25 million VND |
| FDI audit | Foreign invested enterprises | Mandatory audit, reconciliation of transfer pricing and capital contributions. | From 45 million VND |
| Advanced Auditing | Large-scale businesses with multiple branches | Consolidated audit, internal control review | According to separate price quotation |
Note: The above price list is for reference only and is not fixed for all cases. The official fee for hiring an independent audit firm at MAN will be determined after the initial survey and will depend on the specific details of the business.
Proof of credibility and commitment to responsibility.
The team of auditors at MAN holds CPA certification, adheres to professional ethics standards, and is committed to the absolute confidentiality of clients' financial information throughout the independent audit process. Over 500 clients have returned for a second time in the past year, largely due to the consistent quality of reports and the ability to support clients in resolving tax-related issues. audit.
Nationwide service coverage
MAN – Master Accountant Network serves clients nationwide, focusing its resources on areas with a high concentration of FDI businesses such as District 1 and District 7 in Ho Chi Minh City, as well as key industrial zones in Binh Duong and Dong Nai. Businesses in other provinces and cities can still hire independent auditing firms from MAN through remote work combined with on-site surveys when necessary.
Case Study: How do FDI businesses in District 7 handle hiring independent auditing firms?
Background
Company Y, a foreign-invested enterprise operating in the logistics sector in District 7, Ho Chi Minh City, has been preparing its internal financial reports for many years without hiring an independent auditing firm on time, leading to delays in tax settlement and warnings from investment management authorities.
Handle
After receiving the documents, MAN takes three steps: reviewing all accounting data for the past three years to identify outstanding discrepancies, developing an audit plan prioritizing high-risk items such as intercompany liabilities and transfer pricing expenses, and assisting the business in working directly with the tax authorities to explain the adjusted figures.
The measured results
- The audit report was issued on time for the final settlement, avoiding penalties for late submission.
- A discrepancy in intercompany debt amounting to over 1.2 billion VND was detected and promptly rectified.
- The company established a process for hiring an independent audit firm on an annual basis, reducing processing time from six weeks to three weeks in subsequent years.
Expert opinion: Common business risks when hiring independent audit firms.
Experts at MAN – Master Accountant Network, with over 30 years of auditing and tax consulting experience in Vietnam, point out four of the most common risks that businesses often face.
- Risk 1: Choosing an auditing firm based solely on low fees: Many businesses prioritize low fees when hiring independent auditing firms, overlooking their actual professional capabilities. As a result, audit reports are often superficial, failing to detect material errors. Only when tax authorities conduct an inspection do they face retroactive tax collection and penalties for late payments, with the cost of rectification far exceeding the initial savings.
- Risk 2: Hiring an independent auditing firm too close to the settlement deadline: When businesses only hire auditing firms during peak periods, auditors don't have enough time for in-depth reviews, easily overlooking risky items such as inventory, bad debts, or expenses without valid invoices.
- Risk 3: Failure to verify the legal standing of the auditing firm: Some businesses contract with organizations not included in the list of qualified firms published by the Ministry of Finance. In such cases, the audit report may not be accepted by the regulatory authority, requiring the entire process to be redone.
- Risk 4: Lack of coordination in providing documentation during the audit process: Businesses that are slow to provide documents, contracts, or accounts receivable reconciliation statements prolong the audit process, directly impacting the tax settlement deadline. MAN recommends that businesses designate an internal point of contact to coordinate seamlessly with the audit team from the date the contract is signed.
Conclude
Hiring an independent auditing firm is not only a legal obligation for certain business groups but also a tool for early detection of financial risks and preparing solid documentation before tax audits. Businesses need to proactively choose a competent auditing firm, initiate the process early, and cooperate closely throughout the process to achieve the best results.
MAN – Master Accountant Network is a trusted partner for businesses seeking independent auditing services in Vietnam. With a team of experts boasting over 30 years of practical experience, deep expertise in tax risk management, and a commitment to absolute confidentiality, we offer exceptional service. Contact MAN – Master Accountant Network today for a free survey and audit quote tailored to your business size.
Other services
- Internal audit services
- Internal Control System Assessment Service
- Auditing services on request
- Professional tax audit services
- Construction auditing services
- Completed project settlement audit service
- Financial statement audit services
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 Hiring an Independent Audit Firm
Is it mandatory for small businesses to hire an independent auditing firm?
No, unless the business falls under the mandatory category according to Article 37 of the 2011 Independent Auditing Law, such as FDI enterprises or public companies. Other small businesses may voluntarily hire auditors to facilitate loan applications or fundraising.
What factors determine the cost of hiring an independent auditing firm?
Costs depend on revenue, number of branches, transaction complexity, and the time required to complete the report. Businesses should request a survey before receiving a formal quote.
What are the consequences for not hiring an independent auditing firm when it is mandatory?
Businesses may face administrative penalties under Decree 41/2018/ND-CP, and their financial reports may not be accepted by tax authorities and banks, affecting their loan applications and tax settlements.
How long does it take to hire an independent auditing firm and complete the audit?
For medium-sized businesses, the process typically takes 3 to 6 weeks from contract signing to receiving the official report, depending on the availability of supporting documents.
Is it possible to change independent auditing firms midway through the process?
It is possible, but businesses need to hand over all previous work documents and notify the reason for the change in accordance with regulations, to avoid disrupting the tax settlement process in the current fiscal year.
