Audit of financial statements is a mandatory requirement for FDI businesses. Choosing a reputable independent audit firm that meets the standards of FDI businesses will enhance transparency, compliance with financial reporting, and support businesses in navigating complex regulations. In this article, RSM Vietnam will analyze the 3 factors for selecting an audit firm for financial statement audits for FDI businesses.
Table of contents:
Regulations on Audit for Foreign Direct Investment (FDI) Enterprises
Factors for Selecting a Financial Reporting Audit Firm for FDI Enterprises
How Can RSM Vietnam Assist FDI Enterprises?
1. Regulations on Audit for Foreign Direct Investment (FDI) Enterprises
Based on Circular No. 60-TC/CĐKT dated September 1, 1997, issued by the Ministry of Finance, which provides guidance on accounting and auditing for enterprises and organizations with foreign investment in Vietnam, the audit of financial statements is regulated as follows:
1. For enterprises with foreign investment:
1.1. All enterprises with foreign investment must undergo an audit, both in terms of compliance with accounting procedures and financial reporting.
1.2. The annual financial statements of enterprises with foreign investment must be audited by an independent audit firm in Vietnam or another legally operating independent audit firm in Vietnam, as per the regulations of auditing laws, before submitting them to competent authorities and making them publicly available.
1.3. The audit report must be attached to the annual financial statements of enterprises with foreign investment when submitting them to competent authorities and making financial reports publicly available.
1.4. The audit report should include the following main contents:
1.4.1. Confirmation of the objectivity, truthfulness, and reasonableness of the financial statements and accounting figures.
1.4.2. Comments and evaluations on the accounting work, compliance with the registered accounting system approved by the Ministry of Finance, adherence to accounting laws, regulations, and rules.
1.4.3. Recommendations.
1.5. The audit report must bear the signature and clearly state the full name, certification (degree) number of the auditor, the signature of the director, and the seal of the independent audit firm
2. For independent audit firms conducting the annual financial report audit if enterprises with foreign investment:
2.1. Independent audit firms may only audit the accounting documents of enterprises with foreign investment that are prepared according to the registered accounting system approved by the Ministry of Finance and applied within the enterprise.
2.2. Independent audit firms that have provided accounting services to prepare financial reports for enterprises with foreign investment are not allowed to audit the same financial reports.
2.3. Independent audit firms conducting the audit of the financial reports of enterprises with foreign investment must have legal entity status and ensure honesty, objectivity, and impartiality during the audit at the audited enterprises with foreign investment.
2.4. Independent audit firms are responsible for the legal compliance, independence, objectivity, and truthfulness of the audit results.
>>> See more Important information regarding business financial report audits in 2022
2. Factors for Selecting a Financial Reporting Audit Firm for FDI Enterprises
Audit Experience for FDI Enterprises
FDI enterprises need an audit consultant with extensive experience working with foreign companies. In addition, the audit team of the audit firm should possess a deep knowledge base in international and local areas, including auditing, accounting, taxation, labor, finance, and consulting.
RSM Vietnam has been providing audit services to many businesses and organizations from various countries such as the United States, Japan, South Korea, China, Europe, Taiwan, Hong Kong, Australia, and Canada.
International network
An international audit firm with a global network can meet the strictest requirements for auditing FDI companies.
RSM Vietnam is a member of RSM Global, which means we have international connections when conducting audits for clients with headquarters and subsidiary companies in different countries. RSM Global operates in more than 120 countries worldwide with 820 offices spread across the Americas, Europe, MENA, and the Asia-Pacific region.
Value-Added Services
In addition to providing independent and highly reliable financial report audit services, an audit firm serving FDI enterprises should offer value-added services such as accounting, taxation, compliance, internal control consulting, etc. These value-added services help clients improve their systems and mitigate future risks. These are the value-added services that RSM Vietnam provides to its clients. Furthermore, we regularly update clients on legislative changes, risk warnings, and related information through emails, seminars, and in-depth analytical reports.
3. How Can RSM Vietnam Assist FDI Enterprises?
We always position ourselves at the heart of our clients' business activities, where we can operate most effectively. As long-term consultants, we provide services with a team of experienced experts who have in-depth knowledge and stay updated. No matter where your business is located, you will receive consistently high-quality services from our internationally experienced experts with local insights in each country. We aim to bring success to our clients and empower them for a strong future.
We assign highly experienced auditors with deep industry knowledge to work with clients and quickly adapt to changes in their business environment.
We deliver added value to clients with each audit engagement.
We employ a risk-based audit approach (RSM Orb) with a commitment to transparency, objectivity, independence, and adherence to professional ethical standards.
We utilize big data for industry trend analysis, which impacts the financial reporting.
We provide our audit teams with a global audit platform, based on advanced technology, consistently applied to all member firms worldwide. This enables us to offer high-quality and consistent services to our clients.
>>> See more Foreign Invested Enterprise Audit Services
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