What are your thoughts on Vietnam’s auditing and accounting sector?

Accounting and auditing services continue to grow in Vietnam. In addition to basic auditing services, most independent auditing companies have rapidly developed many types of financial and accounting services to give clients more choice, which enhances the profession as a whole. These additional services include financial accounting supervision, assets assessment, advice on enterprise equitisation proposals, financial and accounting consultancy, taxation advice, and professional training in financial management, among others. 

Vietnam will be in need of high-quality, skilled accountants who understand the business environment and how organisations operate and can contribute to the running of efficient, effective and strong organisations. We believe there will be an increased need for highly-talented professionals, particularly in emerging markets such as Vietnam. That means that organisations need to be prepared to invest in their finance professionals to ensure that they are seen as leaders in the business and are central to decision making.

We also see a need for the role of the auditor to be enhanced and expanded. As well as reporting on historic financial statements, auditors can meet stakeholders’ needs better by including a review of risk management and governance arrangements. They should also report on the assumptions underlying the business model and whether these seem reasonable or optimistic. Greater communication of findings is needed for investors and other stakeholders, and in order to meet their needs we believe that auditors should ultimately report on real-time information.

What are ACCA’s activities in the accounting profession in Vietnam?

ACCA has been present in Vietnam as the first international accountancy body, established in both Hanoi and Ho Chi Minh City in 2002, and almost ten years later we’ve qualified more than 500 professional accountants and supported over 5,000 trainees to become ACCA professional accountants in the country. Worldwide, ACCA has over 147,000 members and 424,000 trainees.

Since the beginning, ACCA has aimed to be a strategic partner of government agencies in developing the local accounting and audit profession to global standards. This collaboration can be seen on a range of issues to strengthen and support the accounting profession in Vietnam, including training and knowledge sharing.

ACCA has been a strategic partner with local professional associations, employers, training providers and universities in developing the accounting and audit curriculum in line with international standards, to train Vietnam’s future finance and accounting leaders. In the next five years, with the mission of offering first choice qualifications to people of ability and ambition, ACCA will continue to work closely with leading universities and tuition providers in training future accounting and finance professionals. 

What, in your opinion, is the role of accounting firms in auditing corporate finance in State-owned companies (SOEs)?

In my view, both the private and the public sector adhere to similar auditing standards and undertake similar processes to gain assurance about the adequacy of the underlying controls and systems that support the financial transactions. In some countries, the audit of SOEs can fall between the two. However, one of the key differences is the wider scope of audit in the public sector, which is generally determined by a country’s legal framework. 

The scope of the auditors’ work in the public sector is generally extended to cover not only the audit of financial statements but also aspects of propriety, corporate governance and arrangements to secure the economic, efficient and effective use of resources. The wider scope of audit is a common feature of public sector audits in a number of countries around the world.

In particular, the governance and audit of SOEs is a major challenge in many economies and for many countries, including Vietnam, as they represent a significant share of the economy and a lot of effort is put in by governments to improve the way they operate and to make them more accountable. In contrast to Vietnam, the UK has limited SOEs, perhaps the most recent being the two banks (RBS and Northern Rock) brought under State control because of the banking crisis in 2008. Therefore, it is less of an issue for the UK’s economy.

Source: VNEconomy.