Auditing financial statements in order to evaluate the truthfulness and reasonableness of financial statements in accordance with accounting standards and accounting regimes promulgated by competent agencies and organizations; increase users’ confidence in financial statements. Let’s learn more about FDI enterprises have to audit financial statements with LSX Law firm.
Law on Independent Audit
Decree No. 17/2012/ND-CP guiding the Law on Independent Audit
Does a foreign-invested company have to audit financial statements?
Accordingly clause 1, Article 15 of Decree No17/2012/ND-CP guiding the Law on Independent Audit has regulations on enterprises and organizations; whose annual financial statement according to the law; to be audited paid for by enterprises; includes:
Firstly, foreign-invested enterprises;
Secondly, credit institutions established and operating under the Law on Credit Institutions, including foreign bank branches in Vietnam;
Thirdly, financial institutions, insurance enterprises, reinsurance enterprises, insurance brokerage enterprises, branches of foreign non-life insurance enterprises.
Lastly, public companies, issuers and securities trading organizations.”
Therefore, FDI enterprises have to have their annual financial statements audited.
Time limit for making audit report
For enterprises that have to have their financial statements audited; they must audit before submitting financial statements as prescribed. The financial statements of the enterprises that have been audited; must attach the audit reports to the financial statements when submitting them to the State management agencies; and superior enterprises.
The annual financial statements of the accounting unit must be submitted to the competent state management agency within 90 days; from the end of the annual accounting period as prescribed by law.
Who to contact to audit financial statements?
Foreign-invested enterprises should contact auditing firms and branches of foreign auditing firms in Vietnam; to get certificates of eligibility for audit service business.
Besides, the Ministry of Finance publishes the list of practicing auditors and auditing firms on the system https://www.mof.gov.vn/
FDI enterprises have direct participation in the management of foreign countries; the management right depends on the capital contribution ratio between the two parties. However, when investing in Vietnam they are all Vietnamese legal entities, born, operates and is governed by many legal systems of Vietnam.
In essence, FDI is the meeting of the needs of two parties one side is the investor and the other side is the country receiving the investment