Regulations on the rights and obligations of auditing firms according to Vietnamese law

Which businesses will be audited by the auditing firm? Rights and obligations of the audited enterprise?

1. Which businesses will be audited by the auditing company?

Pursuant to Article 37 of the Law on Independent Auditing 2011 stipulates as follows:

Audited units

1. Enterprises and organizations whose annual financial statements are required by law to be audited by auditing firms and branches of foreign auditing firms in Vietnam include:

a) Foreign-invested enterprises;

b) Credit institutions established and operating under the Law on credit institutions;

c) Financial institutions and business enterprises insurance businesses, insurance brokerage businesses.

d) Public companies, issuing organizations and securities trading organizations.

2. Enterprises and organizations that must be audited by auditing firms and branches of foreign auditing firms in Vietnam include:

a) State-owned enterprises, except state-owned enterprises operating in the field of state secrets according to the provisions of law, must be audited for annual financial statements;

b) Enterprises and organizations implementing important national projects, group A projects using capital state, except for projects in the field of state secrets that as prescribed by law must be audited for completed project settlement reports;

c) Enterprises and organizations with State capital contribution and other projects using state capital as prescribed by the Government must be audited for annual financial statements or completed project settlement reports;

d) Auditing enterprises and branches Foreign auditing firms in Vietnam must be audited for annual financial statements.

3. The audit of financial statements and project settlement reports completed for enterprises and organizations specified in Points a, b and c, Clause 2 of this Article does not replace the audit by the State Audit.

4. Enterprises and other organizations are voluntarily audited.

According to the above regulations, the following enterprises make annual financial statements and will be audited by auditing firms:

– Foreign-invested enterprises;

– Credit institutions established and operating under the Law on Credit Institutions application;

– Financial institutions, insurance businesses, insurance brokerage businesses.

– Public companies, issuing organizations and securities trading organizations.

2. What are the rights of businesses to be audited?

Pursuant to Article 38 of the Law on Independent Auditing 2011, which stipulates the rights of businesses to be audited as follows:

– Selecting auditing firms, branches of foreign auditing firms in Vietnam and practicing auditors who are qualified to practice according to the provisions of law to enter into audit contracts, except in legal cases. The law has other provisions.

– Require auditing firms, branches of foreign auditing firms in Vietnam to provide information in the registration documents to practice auditing and information about practicing auditors and auditing firms, branches of foreign auditing firms in Vietnam performing the audit.

– Refuse to provide information and documents unrelated to the audit content. Audit.

– Recommend replacing a member participating in the audit when there are grounds to believe that that member violates the principles of independent auditing during the audit process.

– Discuss and explain in writing about the issues raised in the draft audit report if found inappropriate.

– Complain about the behavior of members participating in the audit auditors during the audit process when there are grounds to believe that such behavior is illegal.

– Request compensation in case auditing firms, branches of foreign auditing firms in Vietnam cause damage.

– Other rights according to the provisions of law.

3. What are the obligations of the audited enterprise?

Pursuant to Article 39 of the Law on Independent Auditing 2011, it is stipulated as follows:

– Provide complete, accurate, honest, timely, objective information and necessary documents at the request of practicing auditors and audit firms, branches of foreign audit firms in Vietnam and take responsibility before the law for the information and documents provided.

– Fulfill the requests of practicing auditors and audit firms, branches of foreign audit firms in Vietnam on collecting audit evidence as required of auditing standards and adjust errors so that the audit report does not have exception opinions for contents that cannot be excepted according to the provisions of Clauses 2 and 3, Article 48 of this Law. In case errors are not adjusted according to the opinion of the auditing firm or branch of a foreign auditing firm in Vietnam, the audited unit must explain in writing at the request of the competent state authority or the owner’s representative for the audited unit.

– Coordinate and create conditions for practicing auditors to perform the audit.

– Must not have acts that limit the scope of audits. issues that need to be audited.

– Consider requests from audit firms and branches of foreign audit firms in Vietnam on existence and errors in financial statements and in compliance with the law to take timely corrective measures.

– Timely and fully notify violations of the law and violations of audit contracts in audit activities of practicing auditors and audit firms and branches foreign auditing firms in Vietnam to competent state agencies.

– Payment of audit service fees as agreed in the contract.

– In case of signing an audit contract with an auditing firm, branch of a foreign auditing firm in Vietnam for three consecutive years or more, the audit firm, branch of a foreign auditing firm in Vietnam must be requested to change the practicing auditor to sign. audit report.

– Other obligations as prescribed by law.