Updates to the Law on Independent Audit
On 14 April, the Government issued Decree No. 90/2025/ND-CP (“Decree 90”), amending a number of articles of Decree No. 17/2012/ND-CP (“Decree 17”) providing guidance on some articles of the Law on Independent Audit.
Decree 90 amends two articles of Decree 17, in line with Law No. 56/2024/QH15 amending the Law on Independent Audit (among other laws).
In particular, Article 15 has been amended to add one more case where an enterprise must have its annual financial statement (FS) audited by an external auditor. This will cover large enterprises that meet two of the following three criteria:
1. The total number of employees participating in social insurance on yearly average basis is 200 people or more;
2. Total annual revenue is VND 300 billion or more;
3. Total asset value is VND 100 billion or more.
For the 2025 financial year, enterprises will use data from 2024 to determine whether or not they are subject to the compulsory external audit.
If an enterprise fails to meet two of the three criteria for two consecutive years, it will not be required to procure a compulsory audit of its financial statements.
Of note, other cases subject to compulsory audit of financial statements are:
– FDI companies;
– Credit institutions;
– Financial and insurance companies;
– Public companies and securities trading companies.
In addition to Article 15, Article 16.2 of Decree 17 has also been amended to extend the time limit for one auditor to sign an audited report for five successive years.
Disclaimer: This article and its content are for information only and are not given as legal or professional advice. they do not necessarily reflect all relevant legal provisions with respect to the subject matter. Readers should seek legal or professional advice before taking or refraining to take any action.
