Financial statement review vs. statutory audit in Vietnam: which do you need?
Review and audit are not the same engagement or the same assurance. Here is the difference, who is legally required to be audited in Vietnam, and where a review fits.
“Review” (soát xét) and “audit” (kiểm toán) are often used interchangeably, but they are distinct engagements with different levels of assurance and different providers. Choosing the wrong one wastes money — or leaves you non-compliant. This is the practical difference and how to tell which you need.
Different levels of assurance
- An audit provides reasonable (high) assurance: the auditor gathers extensive evidence and expresses a positive opinion on whether the financial statements are fairly presented.
- A review provides limited assurance: it relies mainly on analysis and enquiry, and concludes negatively — that nothing came to attention suggesting the statements are materially misstated.
Who must be audited in Vietnam
Under the Law on Independent Audit (67/2011/QH12), a statutory audit by a licensed audit firm is mandatory for certain entities — including foreign-invested enterprises, credit institutions, insurers, and public-interest and listed companies. If your company falls into one of these groups, a review does not satisfy the requirement: you need a statutory audit from a licensed provider.
Where a review fits
For companies that are not subject to mandatory audit, an independent review is a lighter, lower-cost way to raise confidence in the numbers — for a lender, a prospective investor, or an internal control check. It is also valuable as pre-audit preparation: a review of your books before the statutory audit surfaces issues early and makes the audit itself smoother. Clarity Consulting provides financial-statement review and pre-audit preparation; where a statutory audit is legally required, we help you get audit-ready for a licensed auditor rather than performing the audit ourselves.
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Articles are prepared by Clarity Consulting's tax, accounting and corporate-advisory team, based on current Vietnamese regulations at the time of writing.