Updated at 04/07/2022 - 05:36 pm
The contents of the audit contract are based on the provisions of Auditing Standard No. 210 issued together with Circular No. 214/2012/TT-BTC dated December 06, 12 of the Ministry of Finance.
Audit contract #
An audit contract is an agreement on audit services made between an audit firm and an audited entity (client). Auditors and auditing firms are required to comply with the provisions and guidelines of this Standard in the agreement and performance of contracts.
The auditee (client) must have a certain understanding of the provisions and guidelines of this Standard in order to coordinate work and handle relationships related to the contract performance and agreement process. copper.
Standards specified in the contract #
According to this ISA, the terms of the agreement must be included in the audit engagement and must include the following main items:
- Purpose and scope of the audit of financial statements;
- The scope of the audit, based on relevant laws and regulations, auditing standards, professional ethics and professional body regulations, to which the auditor must comply ;
- Responsibilities of auditors and auditing firms;
- Responsibilities of the Board of Directors of the entity being audited;
- Agree with management on the responsibility to provide the auditor with financial statements and related documents on a timely basis to enable the auditor to complete the audit within the scheduled time;
- Determine the financial reporting framework that the entity applies to the preparation and presentation of the financial statements;
- Expectations about the report that the auditor and the audit firm will issue;
- And some other related content.
Time to sign the audit contract #
If your business belongs to Subjects required to be audited financial statements, with a fiscal year ending on December 31, the deadline for contract signing is December 12 of that year. If the fiscal year ends on June 01, the deadline for signing the audit contract is May 12 of that year.
This is based on the provisions of Clause 2, Article 9 of the 2011 Law on Independent Audit which clearly states:
"Auditing contract of annual financial statements of enterprises, organizations is required to audit financial statements must be concluded at least thirty days before the end of the annual accounting period".
What will happen if the contract is not signed on time? #
As prescribed at Clause 2, Article 54 of Decree 41/2018 / ND-CP guiding regulations on sanctioning of administrative violations in the field of accounting and independent audit, effective from May 01, 05, the act of entering into audit contracts is late compared to the maximum penalty. is 2018 million dong, specifically:
"A fine of from 5.000.000 VND to 10.000.000 VND shall be imposed on the enterprise or organization that is required to audit the annual financial statements that perform the conclusion of the audit contract of the financial statement slower than the period of time. term".
With the above clear regulations and benefits, we want to convey important contents to businesses that are required to audit annual financial statements. If you have problems in the implementation process, please contact EXPERTIS's Consulting Department for assistance.
