"To reduce audit fees is negative"
"To reduce audit fees is negative"
At a certain point, if everything just stopped at the reduced fee can be viewed as a positive move for the business use of audit services. However, after three audit firms prestigious publication in the loss of nearly 100 billion VND in 2009, plus a number of businesses "problem" of the financial statements have been audited, has made public opinion is not can not ask questions that surround this discount.
Talking to Bloomberg, Mr. Mai said:
- In the world of auditing activities around the world have always comprehend a concept known as "audit does not create value and profit." Thus, in the audit business is almost like any other industry in particular is no auditing investment companies, there is no joint-stock company, no investors. Income of audit activities are mainly from the labor and intelligence spending.
It was so so, at certain angles, profit and loss of audit activities is not the main goal of this career. Moreover, the losses come from a variety of reasons, may stem from the business strategy of the audit firm, including the world famous company.
When they want to increase market share, they have to improve service quality, technology and qualified human resources ... maybe they should be in a hole or a time period for certain.
Besides, for some foreign audit firms in Vietnam, they can use funds from other branches, or from parent companies in other countries to offset their costs.
But that public concern is the reduction of this fee will more or less related to the quality of the audit report?
The cost reduction resulting in losses of companies related to audit quality of audit reports should also be considered in detail. In auditing, quality problems will be related to the audit procedures. If the procedure is to ensure the reduction or loss of interest charges will not affect quality.
Typically, the audit procedures of the foreign audit firms and audit firms demand in Vietnam is generally guaranteed. In the majority of audits were withdrawn stages generally fall into the small business because their customers are only a small company does not affect the whole.
Currently, five separate international audit companies in Vietnam has occupied 55% market share, about 20 large companies in Vietnam more than 30% market share, the remaining approximately 15% of the small audit firms should also not too concerned with society.
But the foreign audit firms operating in Vietnam if there are costs to support the parent company. So, while independent company or companies if reduced audit fees Vietnam will definitely affect audit quality?
The time we have approximately 131 audit firms are operating, including five foreign companies. Among the audit firm has about 15 -20 Vietnam relatively large companies, the rest is small.
The audit firms have different market segments. Clients of the major audit firms are mainly foreign corporations, large corporations and enterprises invested overseas or large projects. In the small company audit clients were usually small and medium enterprises.
However, between these segments there are certain boundaries should lead to reduced costs for competition among audit firms.
But if a business audit fee discounts by stripping processes and procedures in the audit process is certainly the quality of the audits will be less affected.
So in the field of auditing and competitive by reducing costs can be considered valid, sir?
In terms of competition law and market economy conditions, reducing the cost of auditing firms is a good move, bringing benefits to society.
However, given the angle of the audit profession, in the current period, the discount is a negative action and measures need to be limited. Because, with current conditions, the rate which the auditor is not enough revenue to make the audit procedures, reduce costs even more so if not enough to fulfill our audit.
Personally, I absolutely oppose the reduction of audit fees.
So there should take a floor in charge of the audit did not, sir?
In Vietnam, only construction audit is taking a percentage of the estimated cost of the whole project. However, it still may agree to increase or decrease because everyone must follow the market.
In the past we still want to put a charge in the sense that a general threshold for the parties to the agreement, but many businesses do not accept less than the threshold that also limit the auditors' professional development.
According to the audit law, for the business losses have continued to participate in the audit did not, sir?
Law, businesses are still allowed to operate normally in the audit by the concept of "continuous operation", that is when the management body has not made any comments regarding the temporary stop operation, the audit firm is still working normally.
For audit firms losing Vietnam if they had insurance business or financial account used to set up risk reserve in advance. As for the foreign audit firm, if the hole will be the parent company support or income from other sources and other affiliates abroad.
Through supervision, VACPA usually detect any violations of the corporate audit and inspection plan what next, sir?
Through testing, we found the most common violation is the implementation of audit procedures are incomplete by the fact that the procedures prescribed by auditing activities too closely, carefully.
Meanwhile, to implement fully, they must spend so much time, effort and of course the cost of the audit must be very high, while the business conditions of Vietnam is willing to pay higher costs.
Thus, if the same client, the audit firms of foreign countries in Vietnam will set free more than 10 times, even 20 times the level of audit firms in Vietnam presented and they also fulfill complete the procedure.
There we also planned to test this year for the auditing firm is a member of his. With the policy is more and more efficient, the number of audited companies may be reduced slightly. Expected that only about 20 companies inspection and audit results will be made public later this year.
According vneconomy |