Auditing and Assurance Services RSM Vietnam

RSM Vietnam provides audit and assurance services designed to help clients enhance the integrity and reliability of their financial information. This information is used by investors, creditors, and other interested parties. RSM Vietnam's audit and assurance services are focused on customer service quality, ensuring high reliability.

RSM Vietnam is a member of RSM Global Auditing & Consulting Firm - the 6th largest global business and tax consulting service provider. RSM Vietnam has more than 400 professionals and staff who regularly serve listed companies, public companies and multinational corporations, and private enterprises in many fields.

The following article provides detailed and complete information about the audit and assurance services provided by RSM Vietnam. Please contact us for advice and the most detailed information.

Content

1. What is an audit?

2. Difference between audit and assurance services?

3. Introducing RSM Vietnam's audit and assurance services

4. Who needs audit and assurance services?

5. Audit of listed companies

6. Audit of foreign companies

7. Audit of financial statements

8. Construction Audit

9. Why should you choose RSM Vietnam's audit and assurance services?

10. Service process

a. On what basis is the audit performed?

b. Ensuring accounting and auditing standards based on Vietnamese law

11. Client's work when using audit and assurance services

12. Our commitments

RSM Vietnam provides audit and assurance services designed to help clients enhance the integrity and reliability of their financial information.

1. What is an audit?

Basically, if the accounting work is the provision of financial information of an economic organization through the tools of financial statements, the audit is to check and verify the truthfulness of the reports. that financial statement. In other words, an audit is a process of collecting and evaluating all relevant evidence regarding financial information provided by an accountant in order to verify its accuracy and prepare a report on its appropriateness. between such information and generally recognized standards.

In the most general perspective, it is the independent external inspection carried out by a force with high qualifications and professional skills, taking full legal and economic responsibility for the opinions. their assessment of the reliability of the assessed information. The State as well as society will manage and supervise this inspection activity on three main aspects: Public information must comply with generally accepted principles and standards of society.

Since then, the audit function is basically to verify and express an independent, objective, and honest evaluation opinion.

2. Difference between audit and assurance services

Auditing is the process of evaluating the accounting information presented in an organization's financial statements. An audit includes ensuring that the financial statements are accurate, reasonably presented, and ethically prepared, and whether they comply with accepted accounting principles and standards.

Auditing also applies to individuals' financial records and is often used for tax purposes. Audit reveals any misuse of funds, dishonest business practices, misrepresentation of financial statements, or embezzlement.

Internal audits are performed by accountants within the organization. Internal reviews may be conducted on a regular basis to ensure that financial records comply with standards. The audit function can also be outsourced to an individual unit that specializes in this type of assessment so that the audit firm can get an objective view of its financial statements. The audit firm usually performs the audit before the financial statements are presented to the public and ensures that the data provides a true and fair presentation of the financial position of the company.

Assurance is the process of analyzing and evaluating processes, activities, procedures, etc. Assurance is also used in the evaluation of accounting information and financial records. In accounting, the main purpose of assurance is to check the accuracy of accounting information and records and to assure all stakeholders that there are no red flags, misrepresentations, or irregularities in the financial statements. financial statements. The purpose of assurance is not to correct any problems that may be found in the accounting records, but rather to confirm that the accounting records comply with various accounting standards and principles.

Assurance can also apply to other aspects such as to evaluate the procedures and processes to be followed in the operation. In such a situation, processes and systems will be closely observed, and assurance will be provided as to whether the process is being conducted in a manner that yields optimal results.

So what is the difference between Audit and Assurance?

Auditing and assurance are parallel procedures and are often used when evaluating and verifying a company's accounting information and financial records. Auditing and assurance are quite similar in that both are methods used to verify that a company's accounting records comply with different accounting standards, principles, and procedures. Make sure this is the next step and check. Although the audit can be conducted internally with company accounts or externally by individual corporations, assurance is usually performed by a professional audit body or audit board.

3. Introducing RSM Vietnam's assurance audit service

Businesses have many different problems, each situation requires special solutions. Make efficiency a top priority in the process of quality control and budget when performing services. RSM Vietnam always aims to bring the best experience to customers by combining innovative and innovative approaches to different situations.

RSM Vietnam's audit and assurance services are designed to provide a rigorous process for evaluating a company's financial record. Auditing and assurance are parts of the above information verification process. The company's accounting records for accuracy and compliance with accounting standards and principles.

RSM Vietnam's audit and assurance services are designed to provide a rigorous process for assessing a company's financial record.

RSM Vietnam's audit and assurance services include:

• Audit of listed companies

• Auditing foreign enterprises

• Audited financial statements

• Construction Audit

RSM Vietnam confidently affirms the quality of service and we always set ourselves strict goals to achieve high results. Setting the highest professional standards, we take pride in our commitment to strategic partners. We have highly qualified staff and increase investment in training and technology. Our services include independent audits, internal audits for listed and unlisted companies, audit investigations, and other specialized consulting services.

4. Objects that need to use audit and assurance services

Basically, the following business objects that need to use audit and assurance services include:

• Enterprises with foreign investment

• Credit institutions

• Financial institutions and insurance businesses, insurance brokerage businesses

• Public companies, issuers and securities dealers

• State-owned enterprises must be audited for annual financial statements

• Enterprises with capital contributed by the State prescribed by the Government must be audited

• Auditing firm or foreign audit branch in Vietnam

>>See more: Assurance audit service

5. Audit of listed companies

The pressures and challenges related to the management of listed companies are increasing day by day. Protecting shareholder interests, facing frequent changes in securities laws, competing in global markets, and protecting the reputation of our clients are just a few of the many challenges faced by the Board of Directors. the manager has to face.

The audit department for listed companies of RSM Vietnam with experience and in-depth knowledge in many industries will help customers get the best audit service experience. Face-to-face discussions throughout the audit are critical to addressing key issues. The management of RSM Vietnam will work closely with the client throughout the process before and after the audit to promptly grasp the difficulties that the client is facing as well as offer the most suitable solutions.

At the beginning of an audit, our team of experts spends a lot of time learning about our client's operations and business environment. Based on this research and related experiences with similar clients, the audit team will develop the most appropriate plan to focus on the material issues facing the client. Our partners and customers can communicate directly with RSM Vietnam's management and experts to promptly support complex or unusual transactions.

We apply an optimal risk-based audit methodology (RSM Orb) and are backed by our commitment to integrity, independence, and ethical conduct.

>> See detailed article: Audit of listed companies

6. Audit for foreign enterprises

According to Clause 1, Article 15 of Decree No. 17/2012/ND-CP guiding the Law on Independent Audit, there are regulations on enterprises and organizations whose annual financial statements must be audited by enterprises. Branches of foreign auditing firms in Vietnam audit, including:

Article 15. Audited units

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

a) Foreign-invested enterprises;

b) Credit institutions established and operating under the Law on Credit Institutions, including foreign bank branches in Vietnam;

c) Financial institutions, insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, and branches of foreign non-life insurance enterprises.

d) Public companies, issuers, and securities trading organizations.”

Therefore, foreign-invested enterprises are required to have their annual financial statements audited.

RSM Vietnam has extensive experience in providing audit and assurance services to foreign enterprises doing business in Vietnam.

We have a staff of knowledgeable and experienced staff in the field of auditing, accounting, tax, labor, finance, consulting….

RSM Vietnam has been providing audit services to many businesses and organizations from different countries such as: USA, Japan, Korea, China, Europe, Taiwan, Hong Kong, Australia. .

RSM Vietnam is present in more than 123 countries around the world with more than 860 offices, spread across the Americas, Europe, MENA and Asia Pacific.

How does RSM Vietnam support foreign enterprises with assurance audit services?

• We assign a team of experienced and knowledgeable auditors in each industry to work with clients and quickly update changes in the client's business environment;

• We bring to our clients added values when performing each audit contract;

• We implement the optimal risk-based audit method (RSM Orb) with a commitment to integrity, objectivity, independence, and compliance with professional ethics;

• We use big data to analyze and identify industry trends that affect the data presented in the Financial Statements;

• We provide our audit teams with a global, technology-based audit platform that is consistently applied to all of our member firms around the world. Through this, we are able to provide our customers with consistent and high-quality service.

>> See detailed article: Audit of foreign enterprises

7. Auditing of financial statements

Auditing of financial statements is a job performed by auditors and audit assistants to collect audit information and evidence to evaluate the audited financial statements for the purpose of making a statement. opinions on the truthfulness and reasonableness of the audited corporate financial statements compared with applicable standards.

Corporate financial statements are economic and financial information presented by accountants in the form of tables, providing information on the financial position, business situation, and cash flows of the enterprise to meet the requirements of those who use them in making economic decisions.

The purpose of financial statements is to provide information about the financial position, performance, and cash flows of an enterprise, meeting the needs of the majority of users in making financial statements. economic decisions. For this purpose, financial statements must provide information on an enterprise on Assets, Liabilities, Equity, Revenue, other income, expenses, profit and loss, and cash flows enterprise.

The information provided by enterprises in the financial statements includes:

- Asset

- Liabilities must pay

- Equity

- Revenue, other income, production, and business expenses, and other expenses

- Profit, loss and distribution of business results

- Cash flows

In addition to the financial statements, the notes to the financial statements provide further explanations and disclosures about the items presented in the statements. These notes help users understand the accounting policies followed, any significant events or transactions, contingent liabilities, and other relevant information necessary for a comprehensive understanding of the financial statements.

After many years of operation, RSM Vietnam has provided audit services of financial statements for many state-owned economic groups with operating areas in many provinces and cities across the country. Through audit activities, RSM Vietnam has helped clients comply with policies applicable to state-owned enterprises, overcome existing weaknesses, and improve accounting systems and internal control systems, It improves the quality of financial management and corporate governance.

>> See detailed article: Financial statement audit service

8. Construction Audit

RSM Vietnam's construction audit service offers a range of benefits to investors involved in construction projects. Here are the key features and advantages of our construction audit services:

1. Time and Cost Savings: Our construction audit service helps investors save time and reduce construction investment costs. By conducting independent examinations and evaluations, we identify potential areas of inefficiency, waste, or non-compliance, allowing for timely corrective actions. This can lead to cost savings and improved project timelines.

2. Lessons Learned: Through the construction audit process, we gain valuable insights into the project management process. We share these lessons learned with investors, providing them with valuable knowledge and recommendations for future projects. This helps improve project management practices and avoid potential pitfalls in subsequent endeavors.

3. Accounting and Tax Advice: Our construction audit team provides guidance and advice to investors on accounting and tax matters related to the project and overall business operations. We ensure compliance with accounting standards, tax regulations, and reporting requirements. This helps investors navigate complex financial aspects and make informed decisions.

4. Regulatory Updates: We keep investors informed about regulatory changes through regular communications such as emails, seminars, and expert analysis reports. Staying updated on changes in laws, regulations, and policies is crucial for investors to maintain compliance and adapt their strategies accordingly.

RSM Vietnam's construction audit services encompass the following areas:

• Compliance Audit: We independently examine and evaluate the construction investment management process to ensure compliance with applicable laws, regulations, regimes, and policies. This helps identify any deviations or non-compliance issues that need to be addressed.

• Audit for Settlement Value Determination: We verify and assess the conformity of settlement values in contracts, work items, or projects with the relevant regulations and contractual conditions specified by the State. This ensures accurate and fair settlement processes.

• Audit of Completion Project Finalization Report: We review the finalization report of completed projects to ensure that it accurately and reasonably reflects the project's final settlement. This includes compliance with investment management regulations, adherence to Vietnamese accounting standards and regimes, and relevant legal requirements for financial statement preparation and presentation.

By utilizing RSM Vietnam's construction audit services, investors can benefit from professional oversight, enhanced compliance, cost savings, and improved project outcomes. Our experienced team provides comprehensive support throughout the construction process, offering valuable insights and recommendations for success.

>>See detailed article: Construction audit service

9. Why choose us?

With a team of staff with a background of knowledge and experience, for more than 20 years, RSM Vietnam has been providing construction audit services for state agencies, corporations, and large and small enterprises in the world. and abroad. Some typical customers and projects of RSM Vietnam:

• Vietnam Electricity: Thermal power plants, hydroelectric power plants, 500kV, 220kV transmission lines;

• Ministry of Transport: National road and bridge projects;

• Projects of domestic and foreign private enterprises: Hyatt Regency Da Nang Residences, Pandanus Resort Mui Ne, The InterContinental Hanoi Westlake Hotel, Cu Jut solar power plant; An Khanh Thermal Power Plant…

Optimum risk-based audit methodology (RSM Orb) and asserted integrity, independence, and ethical conduct.

RSM Vietnam regularly organizes and participates in seminars and in-depth research with the Ministry of Finance, Vietnam Securities Commission, HOSE, and HNX. This helps us maintain strong relationships with these agencies and can provide quick insights into upcoming changes that may affect our clients' operations.

RSM Vietnam is a member of RSM Global, so we have an international connection when conducting audits of clients with headquarters and member companies located in different countries. RSM Global is present in more than 123 countries worldwide with 860 offices spread across the Americas, Europe, MENA, and Asia Pacific…

10. Service process

10.1 . The Financial Statement Audit is built on the basis of:

The process of conducting our services is based on the following principles:

• Compliance with current Vietnamese auditing standards: We adhere to the auditing standards established by the Vietnamese authorities to ensure the quality and consistency of our audit engagements.

• Compliance with international standards: We also follow the general standards and practices recognized internationally in the auditing profession. This ensures that our services are aligned with global best practices and meet the expectations of international stakeholders.

• Professional ethics principles: We uphold the professional ethics principles of auditing, including independence, integrity, objectivity, confidentiality, and professional competence. These principles guide our behavior and actions throughout the audit process.

• Alignment with business operations and Vietnamese legal environment: Our services are designed to be practical and relevant to the specific business operations and legal requirements in Vietnam. We take into consideration the unique aspects of the Vietnamese business landscape and ensure our audit approach is suitable for the local context.

10.2 To ensure compliance with accounting standards, auditing requirements, and applicable laws, our specific work in the financial statement audit process will include the following steps:

1. •Surveying (for the first time), agreeing on contracts, and making detailed working plans with the Executive Board and the accounting department

2. •Send the financial statement audit team to directly work at the business as planned

3. •Research and evaluate the effectiveness and suitability of the enterprise's internal control system

4. Learn accounting, tax, financial… business systems

5. Witnessing the inventory such as cash, fixed assets, and inventory of the entity at the time of making the audit report

6. Check and reconcile items on financial statements such as Cash, Bank deposits, Trade receivables, Inventory, Fixed assets, Trade payables, Short-term and long-term debt, Capital contribution. ; Revenue, expenses…

7. Review, advise and answer factors affecting tax liability

8. Discuss, adjust with accountants detected problems and give necessary advice

9. Send customers a summary of issues in the audit process and draft audit report

10. Agree with customers on financial reporting data

11. Issue the official audit report.

11. Client's responsibilities

As the client, the Board of Directors has certain responsibilities in the financial statement audit process. These include:

1. Preparation of Financial Statements: The Board of Directors is responsible for ensuring that the financial statements are prepared accurately, fairly, and in accordance with the applicable Vietnamese Accounting Standards, the Vietnamese Accounting System, and relevant legal regulations. They need to oversee the financial reporting process to ensure the integrity and reliability of the financial statements.

2. Timely Provision of Information: The Board of Directors should provide the necessary information related to the company's financial statements to the audit team in a timely manner. This includes providing access to relevant financial records, supporting documentation, and other relevant data required for the audit.

3. Cooperation with the Audit Team: The Board of Directors should arrange for relevant personnel from the company to work with the audit team during the audit process. This may involve providing access to key personnel, such as accountants and financial staff, who can assist in answering queries, providing explanations, and facilitating the audit procedures.

12. Our Commitments

1. Fully and accurately performing the work as agreed in the contract: This means that both parties will fulfill their obligations as outlined in the contract, ensuring that the work is carried out completely and with precision.

2. Making and sending reports on time as required by customers: This commitment entails providing regular reports to the customers within the specified timeframes as per their requirements. Timely reporting helps in maintaining transparency and keeping all parties informed about the progress of the work.

3. Comprehensive and complete consulting on internal governance issues and tax risk identification: This commitment suggests that the involved parties will provide extensive and thorough consulting services regarding internal governance matters and the identification of tax risks. This can include advising on compliance with regulations, risk management, and suggesting strategies to mitigate potential tax-related risks.

4. Collaborating with the Client to solve problems in the implementation process: This commitment signifies a joint effort between the service provider and the client to address any challenges or issues that may arise during the implementation of the project. By working together, they aim to overcome obstacles and ensure that the audit report is issued in accordance with legal requirements.