As a business owner, you can use auditing to manage your business effectively.
1. What is financial statement auditing?
Auditing financial statements is the activity of independent and competent auditors who collect and evaluate audit evidence on audited financial statements in order to provide an opinion on the fairness, accuracy, and reasonableness of the financial statements in accordance with current regulations and standards.
2. Safety - Economy - Development
Therefore, the overall objective of financial statement auditing is to provide assurance to third parties—those who use financial information—that the information provided to them is truthful and reasonable.
In a market economy, various parties use audit results for different purposes.
- For banks, as lenders, they need to know whether the funds they lend are being used for the intended purpose and whether the financial situation of the entity demonstrates its ability to repay the loan.
- For tax authorities, audited financial statements are used to calculate and collect taxes; similarly, other functional agencies also rely on audited financial statements to perform their functions.
- For audited businesses, the goal is to obtain financial statements that comply with current (or accepted) accounting principles and standards, and to detect and prevent errors and fraud.
- For business owners and shareholders, they need to know the full and accurate results of the business, etc. In short, auditing must satisfy those who use the audit results with the reliability and accuracy of the financial information provided to them.
3. Is using auditing services for company management purposes really necessary?
Current types of audits:
- Auditing financial statements
The objective of financial statement auditing is to help the audited entity identify shortcomings and errors identified by auditors or audit firms, so that corrective measures can be taken to improve the quality of the entity's financial information.
- Tax audit
The goal of a tax audit is to help businesses obtain comprehensive assessments and detect any errors in their tax compliance through compliance review techniques by auditors and audit firms, thereby enabling them to make necessary adjustments to comply with tax regulations.
- Business management audit
Depending on the actual needs and specific circumstances of the business, the audit will help meet the conditions that the business requires, serving the business's operations.
Additional services:
4. What is the purpose of an audit for management, and when?
[1] Audit for the purpose of supplementing the bid qualification [Bid audit]
When businesses participate in bidding, according to the Circular of the Ministry of Planning and Investment regulating the details of preparing bidding documents for the procurement of goods – the criteria for evaluating capacity and experience stipulate that: to assess the financial capacity of the bidder, the bidder must submit financial statements to provide information demonstrating the bidder's sound financial situation. Accordingly, the bid documents must include audited financial statements.
[2] Audit for the addition of Real Estate business sectors, sectors requiring statutory capital
According to a circular from the Ministry of Construction, when an operating enterprise wishes to add real estate business to its business activities, it must obtain written confirmation from an independent auditing organization regarding the amount of capital currently owned by the enterprise as recorded in the enterprise's most recent financial statements.
[3] Audit for business type conversion
According to the law, when a business changes its ownership structure, it must file a tax return with the tax authority managing the business up to the time the decision on the change of business type is made. Accordingly, the tax return includes financial statements and audit reports to mitigate tax risks.
[4] Audits for specific purposes
- As required by the bank regarding compliance with the terms of the loan agreement.
- To detect errors or fraud in the accounting system, that is, to examine whether the information in financial statements is truthful and reasonable, and whether it contains material misstatements. Detecting fraudulent and erroneous practices is crucial not only for businesses but also for the entire economy.
- As required by the company's partners in merger or acquisition transactions.
- According to the company's specific requirements.
- When businesses need independent and insightful perspectives on their internal control systems, they can then propose appropriate improvements.
- When a business wants to ensure that management requirements are submitted by the deadlines stipulated by the government or the parent company.
- When a business wants its audit report to be presented according to international standards or the standards of its parent company abroad.
- When businesses want to understand their tax risks, those risks refer to the potential for non-compliance with tax laws, regulations, and other revenue-related obligations of the state budget.
5. Why should you choose Expertis' audit services?
- Over 20 years of experience in the industry
- These professionals have 15-20 years of experience working in auditing, accounting, taxation, information technology, and corporate governance at both foreign and Vietnamese corporate levels.
- The number of accounting and auditing staff reaches 50 people.
- Representing large and small corporations and businesses to handle difficult cases at the tax authorities.
With us, partners can rest assured of the quality of audit services for management purposes.
- Auditing involves gaining a deep understanding of business operations and the issues facing the company within the current legal environment.
- Consider the risks the business faces as well as weaknesses in its internal control system.
- Always communicate with the Board of Directors about any issues that arise during the audit process.
