A company that must have its financial statements audited in Vietnam, but does not, or that files late or incomplete statements, can face administrative penalties. The amount depends on the type of breach, company size, how long it lasted and the rules in force when the penalty is assessed. This guide sets out the general principles so you can recognise the risk. It is not a substitute for advice on your specific situation.
Distinguish the different breaches
Businesses often lump different problems together, but they are usually treated separately. It helps to identify which one applies:
- Not arranging an audit when one is mandatory.
- Filing audited statements after the deadline.
- Not filing financial statements with the competent authority.
- An audit report that does not meet the required content or standards.
- Breaches by the audit firm itself, where the audit firm is the party penalised.
Who must be audited?
Mandatory audit tests generally depend on the type of enterprise, size (revenue, total assets, employees) or public-interest status, such as listed companies and credit institutions. The tests apply to each financial year, so a company should re-check its position every year. Read more in our guide on which businesses must have an audit.
General basis for penalties
Administrative breaches in accounting and auditing are handled under the rules on administrative penalties. Typical outcomes include fines and orders to remedy the breach, and in some cases supplementary sanctions may apply. Because these rules are amended from time to time, check the current text before drawing conclusions about the amount.
Late filing and non-filing are different
Late filing is a breach of a deadline. Non-filing is a breach of the obligation to file at all. A company can correct a breach by filing complete and correct statements, but a penalty may still apply depending on how late it was and the surrounding circumstances. For the deadlines and how they are counted, see our guide to the filing deadline for audited financial statements.
Steps when a missing audit is found
- Check the mandatory-audit test for each financial year.
- Pin down the years that may have been affected.
- Gather financial statements, board minutes and related records.
- Choose a qualified audit firm with suitable scope.
- Assess what can be corrected, and when filing can be done.
- Prepare a documented explanation for the competent authority.
DAVA's process
- We receive the information and check the mandatory-audit position year by year.
- We agree the scope: years to review, type of records, and purpose of the engagement.
- We assess the level of breach and the options to remedy it.
- We help prepare the records and liaise with the audit firm where needed.
- We prepare the explanation and the list of documents for the authority.
- We help plan future years so the gap does not recur.
Timing
Timing depends on the number of years to review, the condition of the records and the requirements of the authority. Complete records make the work faster. After we receive preliminary information, we will agree a specific timetable with you.
Documents to prepare
- Business registration certificate and any later changes.
- Financial statements for each year under review.
- Trial balance and main ledgers.
- Tax returns and any tax authority notices.
- Minutes of the relevant members', board or shareholders' meetings.
- Any reminder or request letters from the authority.
Cost
Review and support fees depend on the number of years, the completeness of the records and the scope of work. There is no single fee for every case: it depends on the records, scope and purpose. Contact DAVA for an accurate quote, with free initial advice.
Common scenarios
A newly formed company unsure whether it is in scope
Tests can change from year to year. Checking from the first year avoids discovering a gap after several years have passed.
A company that has received a reminder from the tax or business registration authority
Read the notice carefully, identify the exact conduct cited and the response deadline. A documented response is far more effective than a general one.
A subsidiary of a foreign group
Besides local obligations, the parent may require an audit to its own standard. The records should be prepared so one set of documents meets both requirements.
Vietnam vs Australia, New Zealand and Singapore
This comparison is general and for planning only. Check the current rules with the relevant regulator or an adviser before acting.
| Criteria | Vietnam | Australia | New Zealand | Singapore |
|---|---|---|---|---|
| Regulator | Ministry of Finance and competent authorities | ASIC (companies) | Companies Office and IRD (tax) | ACRA (companies) |
| Audit obligation | Mandatory for specified entities under the independent audit rules | Large proprietary companies generally must have accounts audited, unless ASIC grants relief | Depends on company type and size; check current rules | Small private companies may be exempt if they meet the criteria; criteria are under review, so check ACRA |
| Size tests | Based on the entity type and scope under the rules | Two of three tests: consolidated revenue, gross assets, employees (thresholds updated over time) | Depends on the entity type | Based on revenue, total assets and employees over two consecutive years |
| Penalty approach | Administrative penalties under the rules for accounting and auditing breaches | Penalties and enforcement under the Corporations Act; relief from audit is granted by ASIC | Penalties for non-compliance with filing and tax obligations | Penalties for non-compliance with filing and accounting obligations |
| Standards | Vietnamese auditing standards | Australian Auditing Standards | NZ auditing and assurance standards | Singapore Standards on Auditing |
How DAVA supports foreign companies and expats in Vietnam
DAVA works with foreign-invested companies, overseas groups and expatriate owners on valuation and review support. Our team can work with you in English; documents can be prepared bilingually. Australian clients can also reach us through Qualified AU Pty Ltd on WhatsApp at +61 451 710 342, or by email at voan.sgg@gmail.com.
Frequently asked questions
Is there always a penalty for not auditing financial statements?
No. A penalty risk arises when a company is required to have an audit under current rules and does not arrange one, or breaches related obligations. A company outside the mandatory scope is generally not penalised for this reason.
Are late audited statements penalised?
They can be. Filing late is a separate breach from failing to audit, with its own consequences. The length of the delay, whether it is a repeat issue, and whether it has been corrected can all affect the outcome.
What should a company do if it finds a missing audit?
Identify the affected financial years, gather the records, choose a qualified audit firm with the right scope, and prepare a written explanation. Get advice before filing anything with the authority.
How is the actual penalty calculated?
It depends on the type of breach, company size, duration and the rules in force at the time. Figures quoted online may be out of date. Check the current rules, or get advice, before relying on any amount.
Can an audit firm be penalised for a poor audit?
Yes. Negligent or collusive audits that misstate financial statements can lead to penalties for the audit firm and the individuals involved. When choosing an auditor, check its eligibility and the scope of work it will perform.
Conclusion
The most important step is confirming whether you are in scope, and identifying the exact breach if there is one. A company that reviews early and keeps complete records is much better placed when it deals with the authority. Contact DAVA for a preliminary review.
Contact DAVA for advice and a quote
- Hotline/Zalo: 0945 009 002 · 0906 915 002
- Phone: 028 6674 3333
- Email: voan.sgg@gmail.com
- WhatsApp (Australian clients, via Qualified AU Pty Ltd): +61 451 710 342
- Zalo OA: https://zalo.me/4259407728989141071
