A half-year review of financial statements in Vietnam is an engagement in which an auditor checks six-month financial statements mainly through analytical procedures and inquiries, rather than a full audit. For Australian, New Zealand and Singapore groups with a subsidiary, branch or investment in Vietnam, knowing when a half-year review is needed, what it covers and how long it takes avoids last-minute problems when the parent company consolidates results.
Half-Year Review of Financial Statements in Vietnam: What It Covers
A half-year financial report is prepared for the six months to a reporting date. It usually includes a balance sheet, income statement, cash flow statement and selected notes. A review is a limited-assurance engagement. The auditor performs analytical procedures, makes inquiries of management and carries out targeted tests, but does not examine every transaction as a full annual audit does.
The result is a review report. It states whether the auditor has become aware of anything that suggests the half-year statements are not prepared in all material respects. A review report is not an annual audit report with an audit opinion, so it should not be substituted for one in a bank file, a listing application or a parent company pack.
Half-Year Review Compared With an Annual Audit
| Criteria | Half-year review | Annual audit |
|---|---|---|
| Period covered | Six months | Full financial year |
| Level of assurance | Limited | Reasonable |
| Main procedures | Analytical procedures, inquiries, targeted tests | Detailed testing, confirmations, controls testing |
| Output | Review report | Audit report with an opinion |
When a Half-Year Review Is Required in Vietnam
As a general principle, a half-year review is required under securities rules for public companies and listed companies. The company charter, agreements with business partners, and requirements from banks or overseas parent companies may also call for one. Because these requirements change, companies should check the current rules against their legal status before planning the engagement.
Common situations
- A public or listed company must publish a reviewed half-year report.
- A foreign-invested company must send six-month figures to an Australian, New Zealand or Singapore parent for group reporting. Our guide on audits of foreign-invested companies explains related reporting requirements.
- A company applying for a bank facility is asked for reviewed interim figures.
- A company preparing for a listing needs reliable interim numbers.
Vietnam vs Australia, New Zealand and Singapore
The table below is a general comparison. Where we have not verified a rule for a particular jurisdiction, we say so. Please confirm current requirements with a local adviser.
| Criteria | Vietnam | Australia | New Zealand | Singapore |
|---|---|---|---|---|
| Half-year reporting | Public and listed companies must publish half-year statements under securities rules | Disclosing entities must prepare half-yearly financial reports under the Corporations Act (ASIC) | Depends on entity type and listing status; check locally | SGX moved listed companies from quarterly to half-yearly reporting (announced in 2020) |
| Review standard | Vietnamese auditing and review standards | ASRE 2410, the auditor's review of a half-year financial report | Check locally | Check the current SGX Listing Rules |
| Review report lodgement | Published as part of the company's disclosure | For ASX-listed entities, the auditor's review report is lodged with the ASX alongside the half-year report | Check locally | Check locally |
| Fee and timing reference | Depends on scope and size; request a quote | Varies; request a quote | Varies; request a quote | Varies; request a quote |
Half-Year Review Process at DAVA
- Scope and timetable: agree the reporting period, the entity or group in scope, subsidiaries included and the publication deadline.
- Understanding the business: review the industry, business model, and changes during the period, such as capital changes, new projects or large borrowings.
- Analytical procedures: compare six-month figures with prior period, budget and industry indicators.
- Inquiries and reconciliations: discuss matters with the chief accountant and management, and reconcile receivables, payables, inventory and related party transactions to the extent required.
- Discussing findings: resolve open questions, proposed adjustments and improvements to the notes.
- Issuing the review report: once matters are resolved, the review report is issued with the half-year financial statements.
Timing, Documents and Costs
There is no standard duration. Timing depends on the size of the group, the complexity of transactions and how quickly records are ready. Companies with clean ledgers, complete reconciliations and documents delivered on time usually move faster. We recommend booking the engagement several weeks before the publication deadline.
Typical documents include the draft half-year statements with a six-month trial balance, general ledger and detailed ledgers for major accounts, board and shareholder minutes, major contracts and loan agreements, a related party list and details of subsidiaries and changes in share capital.
For groups reporting to a parent in Australia, New Zealand or Singapore, agree the reporting calendar early. The parent's consolidation deadline often falls before the Vietnamese publication date, so the review timetable should work backwards from the group pack. Confirm which accounting framework the parent needs, whether that is Vietnamese standards with conversion adjustments or a reporting basis aligned with international standards, before the work starts.
Fees depend on scope, size of the group and the purpose of the report. Please contact DAVA for an accurate quote. The initial consultation is free.
Common Mistakes to Avoid
- Leaving preparation until close to the deadline, which compresses reconciliation of receivables, payables and inventory.
- Sending a draft whose figures are still changing, which means the review has to be repeated.
- Confusing a half-year review report with an annual audit report when dealing with a bank or a partner.
- Missing details of related party transactions, which lengthens inquiries and reconciliations.
- Not agreeing the subsidiaries in scope early, leading to a change of scope partway through.
After the Review Report Is Issued
The review report should be kept on file with the signed half-year statements. If adjustments are made after the review, update the notes and tell everyone who received the figures, especially a bank or an overseas parent. For consolidated reporting, align the issue date so that subsidiary figures match the group totals.
For the annual audit that follows, our guide on annual financial statement audits explains what changes in scope and timing. For completed construction or investment projects, see our note on project final account audits.
How DAVA supports foreign companies and expats in Vietnam
DAVA has more than 15 years of experience in valuation of real estate, businesses and machinery and equipment, and works regularly with courts, government agencies, banks and companies. Our offices are in Ho Chi Minh City, Hanoi and Da Nang, and we can meet on site when a physical review is needed. For overseas parents, we can explain Vietnamese reporting requirements in plain terms and help align timetables with group reporting calendars.
Frequently Asked Questions
Is a half-year review the same as an audit?
No. A review has a lower level of assurance than an annual audit and relies mainly on analytical procedures, inquiries and targeted tests. A review report does not replace an annual audit report.
Do small companies need a half-year review?
That depends on legal status, the company charter and requirements from partners or banks. Check current rules, or ask your auditor, before deciding.
Can a review start if the draft statements are incomplete?
Yes, but a complete draft makes the review faster and cheaper. Missing information usually extends the timetable.
When can the review start?
Typically after the six-month period ends and once accounting has a draft report ready. Book a timetable early.
Can the review be used by an overseas parent?
The report is issued in Vietnamese. If the parent needs English, DAVA can help prepare bilingual documents on request.
What should I prepare before contacting DAVA?
Basic company details, the reporting period and the publication deadline are enough to start. The rest is discussed during the engagement.
Conclusion
A reviewed half-year report gives management and stakeholders reliable interim figures before publication or use in a transaction. Good records and early scheduling have the biggest effect on timing.
Our team can work with you in English; documents can be prepared bilingually.
Contact DAVA about a half-year review:
- Hotline/Zalo: 0945 009 002
- Hotline/Zalo: 0906 915 002
- Phone: 028 6674 3333
- Email: voan.sgg@gmail.com
- WhatsApp +61 451 710 342 (Qualified AU Pty Ltd, for Australian clients)
- Zalo OA: https://zalo.me/4259407728989141071
