According to the provisions of Article 37 of the Law on Independent Audit dated March 29, 03 and Article 2011 of the Decree No. 15/17/ND-CP dated February 2012, 13 guiding the Law on Independent Audit, the following entities: This is a must audit:
Enterprises are required to audit #
1. Enterprises and organizations with annual financial statements prescribed by law must be audited by auditing enterprises and branches of foreign auditing enterprises in Vietnam, including:
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 foreign non-life insurance enterprises' branches.
d) Public companies, issuing organizations and securities trading organizations.
2. Other enterprises and organizations are required to audit in accordance with relevant laws.
3. Enterprises and organizations must be audited by auditing enterprises and branches of foreign auditing enterprises in Vietnam, including:
a) State enterprises, except State enterprises operating in the fields of State secrets under the provisions of law, must be audited for annual financial statements;
b) Enterprises, organizing the implementation of important national projects and group A projects, using state capital, except for projects in the fields of State secrets according to law provisions, must be audited for reports on completed project settlement;
c) Enterprises and organizations that state corporations and corporations hold from VND 30% or more of voting rights at the end of the fiscal year must be audited for annual financial statements;
d) Enterprises whose listing organizations, issuing organizations and securities trading organizations hold from VND 30% or more of voting rights at the end of the fiscal year must be audited for the financial statements of goods year;
d) Auditing enterprises and branches of foreign auditing enterprises in Vietnam must be audited for their annual financial statements.
4. Enterprises and organizations subject to auditing of annual financial statements as stipulated in Item 1 and Item 2 in accordance with the provisions of law must prepare consolidated financial statements or general financial statements. then auditing the consolidated financial statements or general financial statements.
5. The auditing of financial statements and finalization of project reports for enterprises and organizations specified at Points a and b, Clause 2 shall not replace the audit of the State Audit.
6. Other enterprises and organizations are voluntarily audited.
What is a foreign invested enterprise? #
Time before date 01 / 07 / 2015 #
Pursuant to Clause 6, Article 3 of the Law on Investment dated November 29, 11 and effective on July 2005, 01
Foreign-invested enterprise means an enterprise established by a foreign investor to carry out investment activities in Vietnam or a Vietnamese enterprise where shares purchased, merged or acquired by foreign investors. .
Time from date of 01 / 07 / 2015 #
Article 3 Investment Law dated 26 month 11 year 2014 takes effect from the date of 01 / 07 / 2015 specified:
“17. Foreign-invested economic organization means an economic organization whose foreign investor is a member or shareholder. ”
Regarding investment conditions, there are differences according to the ratio of foreign capital contribution stipulated in: Article 23. Carrying out investment activities of foreign-invested economic organizations
Based on the above provisions, foreign-invested enterprises (or foreign-invested economic organizations) are enterprises with capital-contributing investors being foreign individuals and organizations subject to compulsory audited financial statements.
Administrative fines if enterprises do not conduct mandatory audits #
According to Article 12 of Decree No. 41/2018 / ND-CP stipulating the Penalties for violations against regulations on filing and publishing financial statements as follows:
"Article 12. Penalties for violations of the regulations on submitting and publicizing financial statements
1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:
a) Submitting financial statements to competent state agencies less than 03 months compared to the prescribed time limit;
b) Disclosure of financial statements is slower than the monthly import deadline.
2. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:
a) Publicizing incomplete financial statements as prescribed;
b) Submitting financial statements to competent state agencies without attaching audit reports to cases where the law requires auditing financial statements;
c) Submitting financial statements to competent state agencies at a later than the monthly import and export deadline compared with the prescribed time limit;
d) Publicizing financial statements without accompanying audit reports in cases where the law requires auditing financial statements;
dd) Disclosure of financial statements is delayed for a month or more compared to the prescribed deadline.
3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:
a) Publicing untruthful financial statements and figures;
b) Providing and publishing financial statements for use in Vietnam with heterogeneous data in an accounting period.
4. A fine of VND 40.000.000 to VND 50.000.000 for one of the following acts:
a) Failing to submit financial statements to competent state agencies;
b) Failure to publish financial statements as prescribed.
Forcible submission and publicity of audit reports attached to financial statements, for acts of violations specified at Points b and d, Clause 2 of this Article. "