The audit report of a listed company was rejected, what should be noted about the quality of the 'passport'?

The audit file of the 2024 financial report of a listed company did not meet the requirements of the Securities Commission. The agency said it would suspend the auditor who signed the report.

Audit reports are not always a "passport" that ensures absolute transparency to help stock investors feel secure - Photo: QUANG DINH

Securities Commission "blows whistle" on the quality of an enterprise's audit report

Thu Duc Import-Export Trading Joint Stock Company - Timexco (TMC) has received a document from the Securities Commission regarding the company's audited 2024 financial statements audited by An Viet Auditing Company Limited.

According to the Securities Commission, the results of the audit service quality inspection at An Viet Auditing Company Limited showed that the audit records of Timexco's 2024 financial statements did not meet the requirements.

According to the management agency, the reason is that the auditor has not fully performed the audit procedures and has not collected sufficient appropriate evidence as required by auditing standards.

The Securities Commission also said it would suspend auditors from signing Timexco's 2024 audit report.

Notably, An Viet is also the unit responsible for auditing TMC's financial statements for both 2022 and 2023.

About An Viet, this auditing company was established in 2003, headquartered in Hanoi . An Viet's 2024 transparency report shows that the company has 55 clients who are audited businesses this year.

Among them, there are a number of listed companies such as Hanoi - Hai Phong Beer Joint Stock Company (BHP), Petrolimex Hai Phong Transportation and Services Joint Stock Company (PTS), Hai Phong Funeral Services Joint Stock Company (CPH), Petrolimex Saigon Transportation and Services Joint Stock Company (PSC)...

In the 2024 fiscal year (from July 1, 2023 to June 30, 2024), An Viet Company recorded revenue of more than VND 75.29 billion, while expenses amounted to VND 72.58 billion. As a result, the after-tax profit of this auditing firm reached more than VND 1.9 billion.

What should you note about the audit "passport"?

Under current regulations, public companies, especially listed companies, must prepare annual financial statements audited by an auditing organization approved by the State Securities Commission. Semi-annual financial statements must also be reviewed by an independent auditing unit.

This regulation aims to protect investors from risks from "fake" reports and embellished data. At the same time, it improves governance standards, approaches international practices, and creates confidence for domestic and foreign investors.

However, before An Viet Company, the Securities Commission had also "blown the whistle" on many auditing companies. For example, DFK Vietnam Auditing Company Limited signed the financial report of Quoc Cuong Gia Lai Joint Stock Company (QCG), but the Securities Commission later said that the auditor had not fully performed the auditing procedures.

The auditors auditing QCG's report have not yet collected sufficient appropriate audit evidence to express an audit opinion as required by the auditing standards.

This inevitably raises investors' doubts about audit quality.

The director of a securities company noted that investors should prioritize businesses audited by reputable companies.

At the same time, one should not rely solely on audit reports to make decisions, but should combine cash flow analysis, actual business operations and other information factors...

According to this person, Vietnam is encouraging listed enterprises to apply International Financial Reporting Standards (IFRS).

After the incentive period, listed enterprises, large-scale public interest organizations, especially foreign-invested enterprises after 2025, will have to prepare financial statements according to IFRS.

"However, in reality, not many accountants and auditors are proficient in IFRS. Up to now, very few large units have followed this standard, not to mention small and medium-sized enterprises," said the director.

Meanwhile, moving towards IFRS standards is necessary to help investors, especially foreign investors, make it easier to analyze and evaluate when approaching and investing in businesses.

BINH KHANH

Source: https://tuoitre.vn/bao-cao-kiem-toan-mot-cong-ty-niem-yet-bi-bac-bo-can-luu-y-gi-chat-luong-tam-ve-thong-hanh-20250924185015154.htm