Under Vietnamese law, most FDI enterprises are required to conduct annual independent audits of their financial statements. This audit is not merely a formality but a legal obligation that directly affects tax finalization, profit remittance, license amendments, and overall business compliance.

In this article, we provide a complete overview of the Professional FDI Auditing Service, including legal requirements, audit scope, common risks, audit procedures, and how MVA Viet Nam supports FDI companies throughout the auditing process.

I. What is an FDI Auditing Service?

1.1. Definition of FDI Enterprises under Vietnamese Law

An FDI enterprise is a company established in Vietnam with capital contributed by foreign investors. These enterprises operate under the Law on Enterprises, the Law on Investment, and must comply with Vietnamese accounting and auditing regulations.

Because of their foreign ownership structure, FDI companies are subject to stricter compliance requirements, especially regarding accounting records, tax declarations, and financial reporting.

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1.2. What is Statutory Audit for FDI Enterprises?

A statutory audit is an independent examination of a company’s financial statements conducted by a licensed auditing firm. For FDI enterprises, this audit ensures that financial reports accurately reflect business activities and comply with Vietnamese Accounting Standards.

As a result, using a Professional FDI Auditing Service helps enterprises meet legal requirements while maintaining transparency for investors and authorities.

II. Why FDI Enterprises Are Required to Conduct Annual Audits

2.1. Legal Basis for Mandatory Audit

The requirement for audit is governed by:

• Law on Independent Audit
• Law on Enterprises
• Tax Administration Law
• Accounting Law

These regulations clearly state that enterprises with foreign investment capital must have their financial statements audited annually.

2.2. Consequences of Not Conducting Audit

Failure to conduct an audit may lead to:

• Administrative penalties from authorities
• Rejection of tax finalization reports
• Difficulties in remitting profits abroad
• Problems when amending investment licenses
• Increased risk of tax inspections

Therefore, a Professional FDI Auditing Service is essential to avoid these legal and financial consequences.

III. Scope of Professional FDI Auditing Service

A comprehensive audit for FDI enterprises includes several important tasks.

3.1. Auditing Financial Statements

Auditors review balance sheets, income statements, cash flow statements, and notes to financial statements to ensure accuracy and compliance.

3.2. Reviewing Accounting Records and Vouchers

Moreover, auditors check invoices, contracts, bank statements, and accounting vouchers to verify the legality of transactions.

3.3. Assessing Tax Compliance

In addition, the audit process evaluates whether tax declarations such as VAT, CIT, PIT, and FCT are consistent with accounting data.

3.4. Internal Control and Risk Assessment

A Professional FDI Auditing Service also assesses internal control systems and identifies potential financial risks.

IV. FDI Audit Process in Vietnam

Understanding the audit process helps enterprises prepare documents effectively.

4.1. Preparing Accounting Documents

Companies must prepare full accounting books, financial statements, tax reports, and supporting documents before the audit begins.

4.2. Audit Fieldwork and Data Verification

Auditors work directly with the company’s accounting department to verify figures and transaction evidence.

4.3. Audit Report Issuance

After completing verification, the auditing firm issues an official audit report in compliance with regulations.

4.4. Submission to Authorities

The audited financial statements are then submitted to tax authorities, investment authorities, and statistical offices as required.

V. Common Risks Found During FDI Audits

During audits, several common issues are often discovered:

• Incorrect application of Vietnamese Accounting Standards
• Transfer pricing risks in related-party transactions
• Missing or invalid invoices and vouchers
• Differences between accounting data and tax declarations

Weak internal control systems

Consequently, early detection through a Professional FDI Auditing Service helps enterprises correct errors before facing penalties.

VI. Benefits of Using a Professional FDI Auditing Service

Using a professional audit service provides many advantages:

• Ensures full legal compliance
• Saves time for internal accounting teams
• Detects financial and tax risks early
• Supports tax finalization and inspections
• Builds trust with parent companies and investors

Furthermore, audited financial statements are often required when enterprises apply for loans, expand projects, or adjust investment licenses.

VII. Professional FDI Auditing Service from MVA Viet Nam

MVA Viet Nam is a trusted provider of Professional FDI Auditing Service for foreign invested enterprises across various industries.

Our services include:

• Reviewing accounting systems before audit
• Supporting document preparation
• Working directly with independent auditors
• Advising on risk correction before report issuance
• Assisting with submission to authorities after audit

At the same time, MVA ensures that FDI enterprises fully understand their compliance obligations and avoid unnecessary legal risks.

VIII. Conclusion

In summary, auditing is a mandatory and crucial requirement for foreign invested enterprises operating in Vietnam. A Professional FDI Auditing Service not only ensures compliance with legal regulations but also enhances financial transparency and operational efficiency.

Therefore, FDI enterprises should proactively prepare for audits and seek professional support to maintain long-term compliance and stability.

MVA VIETNAM ACCOUNTING AND AUDITING COMPANY LIMITED

Address: LK3 – 04, Loc Ninh urban area, TT. Chuc Son, H. Chuong My, City. Hanoi

Phone: 024.7109.7766 (keys 5) – Hotline: 0329.199.983

Wechat: 0329.199.983

Email: quynt.mva@gmail.com