Financial statement auditing involves examining and verifying the accuracy and truthfulness of accounting figures, accounting documents, and financial statements of accounting entities. The purpose of financial statement auditing is to serve those who need to use the information in businesses’ financial statements. Auditors must adhere to four basic principles when auditing financial statements:

1. Comply with legal regulations;

2. Adhere to principles of professional ethics, including independence, integrity, objectivity, professional competence and due care, and confidentiality;

3. Comply with professional standards;

4. Maintain professional skepticism.

However, in the Tan Hoang Minh, FLC, and Van Thinh Phat cases, independent auditors seriously violated their ethical obligations by colluding with businesses to falsify financial statements. In the Van Thinh Phat case, fraudulent financial statements that escaped detection resulted in SCB Bank being drained of as much as several hundred trillion VND. In the FLC case, Trinh Van Quyet and his accomplices used audit reports that violated regulations to prepare an application and secure the listing of FLC Company shares on the stock exchange, then committed fraud to misappropriate more than VND 3,620 billion from stock market investors. In the Tan Hoang Minh case, assistance from two auditing companies in falsifying financial statements enabled the company to go from reporting losses and owing banks nearly VND 20,000 billion to reporting net earnings and high profits. Tan Hoang Minh Company then successfully carried out fraudulent bond issuance schemes and misappropriated an exceptionally large sum of more than VND 8,600 billion from investors.

Link: https://nhandantv.vn/nhung-cai-bat-tay-nghin-ty-giua-kiem-toan-va-doanh-nghiep-d254328.htm

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.