Experts eye role of independent audits

HA NOI — The independent auditing sector celebrated 20 years of operation in Viet Nam yesterday with a meeting that looked back on the achievements that were made during that time.

"Viet Nam is making huge strides as a market economy, and by recognising independent auditing as a profession, is making giant steps forward," said Rob Thomson, CPA Australia's executive general director.

"The most significant effort Vietnamese authorities in this segment have made is building an international auditing standard system," he said.

"The work you have been doing with Viet Nam's independent auditing sector over the past 20 years has enabled the nation to actively participate in the international accounting standards and become an official member of IFAC (International Federation of Accountants), AFA (Incorporated Financial Accountant) and CAPA (Confederation of Asian and Pacific Accountants)," Thomson said to congratulate the Vietnamese authorities.

He also praised the Law on Independent Auditing which will take effect next January.

The sector also experienced unexpected growth in during the period. The development scheme between 2001 and 2010 aimed at the creation of 100 auditing firms but "It actually reached 162 by December 2010 and now there are 165 companies", said Tran Van Ta, President of the Viet Nam Association of Certified Public Accountants (VACPA).

The Ministry of Finance targeted to increase this number to 350 within 10 years.

Ta revealed that auditing services had been improved with more consulting services being offered apart from normal financial auditing statement. "The revenue structure of services has transformed with the reduction in the proportion of auditing revenue and the increase in advisory revenue."

Auditing revenue last year was estimated at VND2.7 trillion (US$128.6 million), up 25.2 per cent compared to 2009. — VNS