Ministry of Finance: Tighten inspection activities of corporate financial statements

DNHN - According to the Ministry of Finance, in recent years, there are many errors in the financial statements of some listed companies and public companies. Even, in some cases, even though there is a fully accepted opinion of the audit firm, errors still appear.

The Ministry of Finance has recently addressed a letter to the State Securities Commission and the Accounting and Auditing Supervision Administration demanding that they strengthen their inspection and supervision of listed businesses' auditors' compliance with legal requirements. 

According to the Ministry of Finance, the annual financial statement audit is compulsory for listed companies and public companies, to help businesses standardize and transparent financial information, and serve the interests of businesses and investors. 

However, in recent years, there are still many errors in the financial statements of some listed companies and public companies. Even, in some cases, even though there is a fully accepted opinion of the audit firm, errors still appear.

Therefore, to improve the quality of audit services for listed enterprises and public companies, meet the requirements of investors and the public; contributing to the stable and healthy development of the stock market, Finance Minister Ho Duc Phuoc requested the Department of Management and Supervision of Accounting and Audit and the State Committee to strengthen inspection and supervision of the implementation. the provisions of the law in the audit of listed enterprises. 

Specifically, assigning the Accounting and Auditing Management and Supervision Department to assume the prime responsibility for, and coordinate with the State Securities Commission and the Inspectorate of the Ministry of Finance in, strengthening and accelerating the inspection, examination and supervision of enterprises. auditing service providers; In case of detecting serious violations, it is required to urgently transfer to the police agency for handling according to the provisions of law. 

In addition, the Ministry of Finance requested the Department of Management and Supervision of Accounting and Auditing to strengthen inspection, supervision and take corrective measures so that audit firms can strictly comply with regulations on (i) compliance strictly with the legal provisions on auditing, the system of Vietnamese auditing standards and relevant legal documents; (ii) ensure independence and objectivity in the audit process; well control the professional ethics of practitioners, improve the capacity of the team of practising auditors; (iii) strictly and properly implementing the audit process; clearly define the contents and responsibilities of auditors and audit firms. 

Simultaneously, examine, assess, and advise the Ministry on changing and supplementing the Law on Independent Auditing and related guiding documents to adopt solutions that improve the quality of independent audit activities.

The Ministry of Finance demanded from the State Securities Commission that it increase oversight of the operation and financial condition of listed enterprises and public firms and that it swiftly notifies investors when an enterprise's financial status or business outcomes fluctuate. 

In addition, assume the prime responsibility for, and coordinate with the Department of Management and Supervision of Accounting and Auditing and the Inspectorate of the Ministry of Finance which e, which s planning to inspect and examine audit firms for listed enterprises, listed companies, and listed companies. mass; pay attention to enterprises whose customers have erroneous or erroneous financial statements, leading to amendments... which significantly change the financial position and business results of the enterprise; in case of detecting serious violations, it is required to urgently transfer to the police agency for handling according to the provisions of law.

The Securities and Exchange Commission is also required to review, amend and supplement sanctions for handling violations under its management for auditing firms and practicing auditors approved to conduct audits. payments to entities with public interests in the securities sector, ensuring deterrence.

Lan Ha