WHICH FINANCIAL REPORTS ARE REQUIRED TO BE AUDITED?
QUESTION
Dear TLK Law Firm, I currently have a question and hope that you can answer the problem as follows: I am the owner of a newly established private business. However, I do not clearly understand which businesses and which financial reports are required to be audited. So let me ask, which financial reports are required to be audited? Looking forward to your company's answer. Thank you!
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Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Law on Independent Audit No. 67/2011/QH12 passed by the National Assembly on March 29, 2011;
2. Decree No. 17/2012/ND-CP issued by the Government on March 13, 2012 detailing and guiding the implementation of a number of articles of the independent audit law;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
In the current conditions of a developed market economy, information on financial reports not only serves the management requirements of business executives but also meets the information needs of employees and investors... Financial reporting is a regular job of businesses. However, not all financial statements require an audit. So, which financial reports are required to be audited? This is a question that many customers sent to TLK Law Firm.
Therefore, through this article, we will answer your questions about "Which financial reports are required to be audited?"
Photo 1. Which financial reports are required to be audited?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO FINANCIAL STATEMENTS WHICH ARE REQUIRED TO BE AUDITED
1. What is a financial statement audit? What is an audit report?
Pursuant to the Law on Independent Auditing 2011, financial statement auditing is the practice of practicing auditors, auditing firms, and branches of foreign auditing firms in Vietnam checking and giving opinions on the truthfulness and reasonable in material aspects of the audited entity's financial statements according to the provisions of auditing standards.
An audit report is a document prepared by a practicing auditor, an auditing firm, or a branch of a foreign auditing firm in Vietnam after completing the audit, giving opinions on the financial statements and other matters. Other content has been audited according to the audit contract.
2. Financial reports are required to be audited
Pursuant to the Law on Independent Auditing 2011, financial reports that are required to be audited include:
(1) Annual financial report;
(2) Completed project settlement report;
(3) Financial information of the audited unit includes:
- 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, including:
+) Enterprises with foreign investment capital;
+) Credit institutions established and operating under the Law on Credit Institutions 2010;
+) Financial institutions, insurance businesses, insurance brokerage businesses.
+) Public companies, issuing organizations and securities trading organizations.
- Enterprises and organizations must be audited by auditing firms and branches of foreign auditing firms in Vietnam, including:
+) State-owned enterprises, except state-owned enterprises operating in the field of state secrets as prescribed by law, must have their annual financial statements audited;
+) Enterprises and organizations implementing important national projects and group A projects using state capital, except for projects in the field of state secrets that must be audited according to the law, completed project settlement report;
+) Enterprises and organizations with State capital contributions and other projects using state capital prescribed by the Government must have their annual financial statements or completed project settlement reports audited;
+) Auditing firms and branches of foreign auditing firms in Vietnam must be audited for annual financial statements.
Thus, for reports falling into the above cases, mandatory audits must be conducted according to the provisions of the law.
3. Regulations on professional examination of the organization
Pursuant to Decree No. 17/2012/ND-CP, auditing organizations are social and professional organizations of auditors, professional auditors, and auditing firms throughout the country. And the professional organization examined:
(1) Architectural training for audit staff and practicing auditors;
(2) Carry out research, editing and updating the Vietnamese auditing standards system on the basis of the international auditing standards system according to the process of developing, promulgating and working on Vietnamese Auditing Standards Nam, submitted to the Ministry of Finance for promulgation;
(3) Participate in organizing exams;
(4) Coordinate with the main inspection of the Ministry of Finance and control the quality of service inspection.
Thus, the auditing practice organization has been established, operates according to the provisions of social law and has a sense of responsibility according to the provisions of law on independent auditing.
=> See more: Tax accounting services, financial reporting services
Photo 2. Which financial reports are required to be audited?_Hotline: 0972118764
II. SUMMARY OF ANSWER SECTION: WHICH FINANCIAL STATEMENTS ARE REQUIRED TO BE AUDITED?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Financial reports are the economic and financial information system of an accounting unit presented according to forms prescribed in accounting standards and accounting regimes. However, some financial reports are required to be audited, including:
(1) Annual financial report;
(2) Completed project settlement report;
(3) Financial information of the audited unit.
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III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time when the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the best legal service provider on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
IV. SOME QUESTIONS RELATED TO FINANCIAL STATEMENTS WHICH ARE REQUIRED TO BE AUDITED
Question 1: What is the latest deadline to conclude a financial statement audit contract?
Reply:
Pursuant to the Law on Independent Auditing 2011, contracts to audit annual financial statements of enterprises and organizations required to audit financial statements must be concluded no later than 30 days before the end of annual accounting the period. .
Question 2: What principles should be followed when conducting independent audit activities?
Reply:
Pursuant to the Law on Independent Auditing 2011, when conducting audit activities, the person conducting them must comply with the following principles:
(1) Comply with the law and be responsible before the law for professional activities and audit reports;
(2) Comply with auditing standards and professional ethical standards of accounting and auditing in Vietnam; For audit work under an audit contract that requires the application of other audit standards, that audit standard must be complied with;
(3) Independence, honesty, objectivity;
(4) Information security.
Thus, when conducting independent audit activities, the auditor must ensure full compliance with the principles prescribed by law.
Question 3: What kind of people are not allowed to register to practice as auditors?
Reply:
Pursuant to the Law on Independent Auditing 2011, the following people are not allowed to register to practice auditing:
(1) Officials, civil servants and public employees;
(2) People in the following cases:
- Being banned from practicing auditing under a legally effective court judgment or decision;
- Being prosecuted for criminal liability;
- Have been convicted of one of the economic or position-related crimes related to finance or accounting but the sentence has not been expunged;
- People who are being subjected to administrative measures of education in communes, wards, towns, sent to medical treatment facilities, or sent to educational facilities.
(3) People with a criminal record for serious economic crimes or more;
(4) People who violate the laws on finance, accounting, auditing and economic management shall be administratively sanctioned within one year from the date of the sanctioning decision;
(5) Persons suspended from practicing auditing.
Thus, if an individual falls into one of the above cases, he or she will not be qualified to register to practice auditing according to the provisions of law.
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Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
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