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1. AUDIT FOR FINANCIAL STATEMENT – DEFINITION, OBJECTIVITIES, IMPORTANCE

Audit for Financial statement stands an important role in the development of businesses and the financial economy. Audit for Financial statement help increase the reliability of the information that companies provide to investors, creditors and other stakeholders in accordance with the law. Auditing corporate financial statements is a special type of service whose final product is the results of business operations through financial reports.

In the article below, IFRS will share with your business the important points of financial statement auditing including the concept, goals, objectives, roles and benefits of corporate financial statement auditing. Besides, we also answer some questions related to the audit of financial statements in 2024.

AUDIT DEFINITION

To understand what the definition of financial statement auditing is, we first start with the basic concept of auditing, what is auditing? In the simplest terms, auditing is the process of collecting and evaluating evidence about information to determine and report.

Financial statement audit is a work performed by auditors and audit assistants to collect information and audit evidence to evaluate the audited financial statements for the purpose of making recommendations. Opinions on the truthfulness and reasonableness of audited corporate financial statements compared to currently applied standards.

An audit for financial statement is the process of evaluating and verifying the accuracy, reliability, and compliance with regulations of an organization or business’s financial statements. The task of a financial statement audit is to provide an independent assessment of the reasonableness of financial information, ensuring that the financial statements accurately and fully reflect the financial situation and business results of the company. that organization.

Financial statements for enterprises are economic and financial information presented by accountants in the form of tables, providing information about the financial situation, business situation, and cash flows of the enterprise to meet the requirements of the enterprise required for those who use them in making economic decisions.

The purpose of financial statements is to provide information about the financial position, business situation and cash flows of an enterprise, meeting the useful needs of the majority of users in making decisions. economic decisions. To achieve this purpose, financial statements must provide information about a business about: Assets, Liabilities, Equity, Revenue, other income, expenses, profit and loss, cash flows enterprise.

Information provided by enterprises in financial statements includes:

• Assets
• Liabilities
• Equity
• Revenue, other income, business and other expenses
• Profit, loss and allocation of business results
• Cash flows

In addition to this information, enterprises must also provide other information in the “Notes to financial statements” to further explain the indicators reflected in the financial statements and accounting policies applied to record entries.

WHICH FIRM AUDITS THE FINANCIAL STATEMENTS?

Audited financial statements are typically performed by an independent auditing firm or group of external auditors, with no direct relationship with the organization being audited. The audit process includes collecting and examining documents, financial records, and other relevant information, as well as conducting tests and checks using appropriate audit methods.

THE IMPORATANCE OF AUDITED FINANCIAL STATEMENTS

Audited financial statement stand an important role in ensuring transparency, reliability and honesty in reporting an organization’s finances. It helps ensure that the financial information provided to stakeholders, such as shareholders, investors and managers, is accurate and reliable.

With the importance of financial statement auditing, choosing a reputable and experienced auditing company is very important. A trustworthy audit firm will help ensure that the audit process is carried out thoroughly and reliably, and provide objective and constructive opinions to improve management systems. internally and enhance the reliability of financial information. In summary, financial statement audit is an important process that helps ensure the accuracy and reliability of financial information. It plays an important role in verifying the reasonableness of financial statements and creating trust for stakeholders.

For businesses, financial statement audits also help strengthen internal management and detect errors, violations of financial laws and potential risks in business operations. Additionally, it creates trust among stakeholders and can provide a basis for effective business decision-making.

2. WHY FINANCIAL STATEMENT ARE AUDITED

As stated above, the purpose of financial statement audit is to help increase users’ confidence in financial statements. This is achieved through the auditor providing an objective, independent opinion on whether the financial statements presented by the enterprise are prepared and presented truthfully, fairly and in material respects, in accordance with the provisions of this Act. consistent with the applicable financial reporting framework.

Audit reports are a means of communication between auditors and users of an enterprise’s financial statements. It represents the most important aspect of the audit process and auditors use this report to convey the results of the audit process to users of Corporate Financial Statements.

In addition, audited financial statements will help audited businesses see their errors and shortcomings, thereby finding solutions to minimize tax risks as well as improve quality. quality of the accounting team at the unit and audited corporate financial information.

3. SERVICE FOR FINANCIAL STATEMENTS AUDITED AT IFRS

Based on the Standard Auditing Procedure of the Vietnam Association of Certified Public Accountants (VACPA) and designed with a focus on key risk areas, based on the characteristics of the client’s business activities such as the field of operation, competitive pressure, inherent risks and corporate culture, we provide professional and quality-committed full-package audit services. Our services are diverse, from auditing to financial consulting, to ensure timely provision of data, operating results and financial status of the enterprise but always comply with the frameworks for preparing and presenting Financial Statements as prescribed by relevant laws. We have performed audits of separate financial statements and audits of consolidated financial statements for corporations and general companies of medium and large scale, in a variety of fields.

Content of financial statement audited at IFRS:

• Check and review the company’s accounting records and books.
• Check and review financial statements.
• Analyze the company’s capital fluctuations during the period.
• Send confirmation letters for bank, investment, receivable and payable accounts.
• Observe the company’s main fixed assets and check the reflection of those assets at the balance sheet date.
• Evaluate the correctness of the company’s internal control system in managing cash, inventory, and fixed assets to confirm the existence, ownership, and value of cash and fixed assets and inventory at the end of the fiscal year.
• Evaluate the company’s internal control system for financial leasing contracts.
• Perform other or alternative audit procedures as necessary on a case-by-case basis.
• Issue audit reports.
• Issue a management letter (if necessary) addressing limitations in the accounting system and internal control system and providing the accountant’s suggestions to improve this system.

In addition to Financial Statement auditing services, we also provide other assurance services tailored to our customers’ specific reporting needs, including:

• Review services according to pre-agreed procedures;
• Forensic services;
• Inventory and fixed asset inventory services;
• Auditing services for Non-Government Organizations projects.

IFRS Auditing and Consulting Company Limited
The company provides a wide range of services such as audit of financial statements, tax advice, accounting services and valuation services with leading experts working in large auditing firms, multinational corporations