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    Country by Country Financial Reporting and Auditing Framework

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    Vietnam – Crowe Horwath Vietnam (prepared January 2015)

    Preparation and Filing of Statutory Financial Statements

    In general, all companies are required to prepare financial statements annually. Groups of Companies are required to prepare consolidated financial statements at the end of the year.

    State-owned enterprises and publicly listed companies are further required to prepare full mid-year financial statements. Other companies who voluntarily prepare mid-year financial statements have the option to prepare abbreviated financial statements only.


    Groups of state-owned enterprises are required to prepare the consolidated mid-year financial statements.


    All companies are required to submit their financial statements to local authorities (tax authorities, General Statistics Office and Department of Planning and investment) within 90 days after the year end date of the financial year.

    Financial Reporting Framework

    All Vietnamese companies must comply with Vietnamese Accounting Standards, Vietnamese Accounting System and relevant statutory requirements. These are partly compliant with International Financial Reporting Standards (IFRS) and contain specific guidance and requirements which are suitable to Vietnam.


    Companies can choose the ending day of each quarter as the closing day of a fiscal year.

    Audit Requirements  

    The companies and organizations that must be audited include:

    • Foreign-invested companies;
    • Credit institutions established and operating under the Law on Credit Institutions;
    • Financial institutions, insurance enterprises, insurance brokerage companies.
    • Public companies, issuers, and securities trading organizations.

    The audit contracts must be signed at least 30 days before the year end date of the financial year.


    Audited financial statements and audit reports must be submitted to local authorities within 90 days after the year end date of the financial year.


    Audit Appointments, Rotation and Joint Audits


    Auditors in Vietnam normally hold office until the next annual general meeting of their client company. They may be appointed or removed at any time. Vietnam does not currently have any rules relating to mandatory rotation of audit firms but there are guidelines within the ethical standards regarding rotation of engagement auditors. Whilst not prohibited, joint audits are quite rare.


    Auditing Standards


    Crowe Horwath Vietnam is required to undertake their audit and express an opinion on the financial statements in accordance with applicable law and auditing standards. Those standards mainly refer to Vietnamese Standards on Auditing issued by the Ministry of Finance of Vietnam. They are based on the International Standards on Auditing of the International Auditing and Assurance Standards Board, published by the International Federation of Accountants.


    Ethical Framework


    Crowe Horwath Vietnam is bound by the Code of Ethics for Professional Accountants issued by the Ministry of Finance which bases on the IESBA Code of Ethics for Professional Accountants (IESBA Code).   


    Auditor Registration


    Crowe Horwath Vietnam is subject to the following external and internal monitoring processes with regard to their audit practice:


    External monitoring


    The firm is subject to annual external review by the Ministry of Finance for the entities audited by the firm. The Ministry of Finance and together with VACPA (Vietnamese Association of Certified Public Accountants) are responsible for ensuring practicing auditors observe, maintain and apply professional standards such that the quality of their professional work is maintained or enhanced. The published financial statements of listed companies are also subject to review by the State Security Committee


    Internal monitoring


    The firm has designed and implemented a system of internal quality control, appropriate for the size and nature of the practice. An important element of the control system is to monitor the continued adequacy and operational effectiveness of the policies and procedures.


    The firm appoints a monitor who will select a completed engagement file from each engagement auditor and review the application of the quality control procedures. The scope of the file inspection is similar to that of a "general review" of working papers and should be driven by the complexity and risks associated with the engagement. The monitor conducts monitoring procedures as required under Vietnamese Standard on Quality Control 1 (VSQC1).

    Contact Us
    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292

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