Although the year is not over yet, the Electricity Finance Joint Stock Company (EVNFinance) has just terminated the contract to provide auditing services for 2024 with Ernst & Young Vietnam Co., Ltd.
EVNFinance's 2024 audited semi-annual financial report shows that the company has outstanding debt of more than VND 24,900 billion at a group of customers with the same representative or working in the same building - Photo: EVF
The resolution of the EVNFinance Board of Directors on terminating the audit contract for 2024 with Ernst & Young Vietnam Co., Ltd. has just been signed and issued.
Immediately afterwards, EVNFinance's board of directors also approved the selection of A&C Auditing and Consulting Company Limited as the auditing service provider in 2024 instead of the "Big4" auditors.
Previously, a large real estate group also changed its auditor "midway" before the end of the 2024 reporting period, namely Novaland . Novaland clearly stated the reason for changing the auditor PwC (also in Big4) as not meeting the necessary requirements to implement and ensure progress.
EVNFinance has not mentioned the reason for having to change the auditing unit when it is about to announce the financial report for the fourth quarter of 2024, and then the audited report for the whole year of 2024.
Previously, Ernst & Young Vietnam was the unit that signed the audit report for EVNFinance in 2022 and 2023, and semi-annual report 2024.
In the audited semi-annual financial report of 2024 of EVNFinance, the significant difference after the audit is that the report had to clarify more details in the customer loan section. This is also an issue that the auditor needs to emphasize when concluding with the long-term investment capital contribution section.
Specifically, regarding customer loans, EVNFinance's total outstanding customer loans at the end of June this year reached more than VND 37,968 billion.
Of which, the company has 11,369 billion VND in short-term loans to contribute capital to business cooperation contracts to implement long-term real estate projects, with collateral being property rights and assets formed in the future.
The company has 29,747 billion VND of loans independently valued by a valuation company over many years. In particular, there is a group of customers lending or having the same representative or working in the same building for more than 24,901 billion VND.
Loans related to real estate projects that have not yet been constructed as of the time of preparing the financial report are VND 11,606 billion.
Source: https://tuoitre.vn/evnfinance-bat-ngo-cham-dut-hop-dong-voi-kiem-toan-big4-ey-20241230151923065.htm
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