Auditing financial statements brings a lot of benefits to the business, but recognizing and promoting the benefits from auditing financial statements is sometimes not the top priority in the strategy. development of business leaders.
Why are businesses required to audit their financial statements? #
Because enterprises belong to one of the subjects subject to audit specified in Article 37 of the Law on Independent Auditing dated March 29, 3 and Article 2011 of Decree No. 15 dated February 17, 13 guiding the Law on Independent Audit up the following:
- Foreign-invested enterprises;
- Credit institutions established and operating under the Law on Credit Institutions, including foreign bank branches in Vietnam;
- Financial institutions, insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, branches of foreign non-life insurance enterprises;
- Public companies, securities issuing and trading organizations;
- State enterprises, except for state-owned enterprises operating in the fields of state secrets according to the provisions of law, must be audited for their annual financial statements;
- Enterprises and organizations implementing projects of national importance and group A projects using state capital, except for projects in the field of state secrets in accordance with the law, must be audited for reports. finalization of completed projects;
- Enterprises and organizations in which state groups and corporations hold 20% or more of the voting right at the end of the fiscal year must be audited for their annual financial statements;
- Enterprises where listed organizations, securities issuers and securities trading organizations hold 20% or more of voting rights at the end of the fiscal year must be audited for their annual financial statements;
- Auditing firms, branches of foreign auditing firms in Vietnam must be audited for the annual financial statements.
When should businesses be audited? #
With the trend of cross-border merger and cooperation, along with a strong investment wave, it is extremely necessary to always have an audited financial statement that properly reflect the "health" of the business. set.
More and more businesses understand that it is essential to have an effective accounting and financial management system and the appropriate and transparent presentation of the data in the report. Not only business leaders need to serve as the basis for making strategic decisions, but also investors always request audited financial statements.
Therefore, even though the enterprise is not subject to an audit, the business leaders still decide to audit the financial statements to meet the requirements of risk management and control.
The current trend of the business #
The "must be audited" or "should be audited" is no longer obligated to be within the statutory mandatory object, but now depends mainly on the vision and development orientation of the leaders. enterprise.
Auditing helps leaders of the Company visualize the overall picture of the business operation of the business in each period and always in a steady position, ready to grasp investment opportunities in the future. At the same time, the amendment of the Vietnamese Accounting Standards to increasingly get closer to the International Accounting Standards, the amendment of tax regulations helps to remove many differences in financial reporting in the country and the world. opening up many opportunities for both domestic and foreign investors.
The strong changes in integration, economic development orientation in the current situation as well as the benefits from auditing have had a strong impact on changing the perception of enterprises about the necessity of auditing and making an audit of "should-do" becomes a must-do.