THE EXPANSION OF THE SUBJECT TO AUDIT THE FINANCIAL STATEMENT

THE EXPANSION OF THE SUBJECT TO AUDIT THE FINANCIAL STATEMENT

Decree No. 90/2025/NĐ-CP dated April 14, 2025 of the Government amending and supplementing certain provisions guiding the implementation of the Law on Independent Audit.

1. Add enterprises and organizations whose annual financial statements are required by law to be audited.

Other large-scale enterprises which meet at least two out of the following three criteria:

- Having an average annual number of employees participating in social insurance of over 200;

- Having annual total revenue exceeding VND 300 billion;

- Having total assets exceeding VND 100 billion.

The enterprises subject to the above-mentioned regulations that fail to meet the criteria for being classified as large-scale enterprises for two consecutive years shall not be required to undergo mandatory audits until they once again meet the prescribed criteria.

Principles for determining the average number of employees participating in social insurance per year, annual total revenue, and total assets:

a) The number of employees participating in social insurance includes all employees managed, employed, and paid wages or salaries by the entity, who are covered under social insurance in accordance with the laws on social insurance;

b) The average number of employees participating in social insurance per year is calculated by taking the total number of employees participating in social insurance for all months of the preceding year and dividing by 12 months;

c) The number of employees participating in social insurance for a given month is determined at the end of that month and is based on the social insurance contribution documents submitted by the enterprise to the social insurance agency;

d) The annual total revenue is determined based on the annual financial statements of the preceding year, which are prepared by the entity in accordance with accounting laws;

đ) The total assets are determined at the end of the financial year based on the annual financial statements of the preceding year, which are prepared by the entity in accordance with accounting laws.

2. Amendment regarding the audit report signing period by auditors:

A practicing auditor is not allowed to sign the audit report for a single audited entity for more than five consecutive years.