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BUSINESSES TRANSITION FROM PROFIT TO LOSS AFTER AUDITING: WHAT ARE THE CAUSES; SANCTIONS FOR BUSINESSES IN VIOLATION AND LEGAL CAUTIONS FOR ENTERPRISES

posted 2 weeks ago

Monitoring the stock market in recent times shows that many listed companies lack transparency in their financial reports, which auditing organizations do not accept, refuse to provide opinions, or have audit opinions except… leading to penalties and even mandatory delisting for businesses.

1. Financial reports and the timing of financial reporting

– According to Article 3, Clause 1 of the Accounting Law 2015, the Financial report (FR) is an economic and financial information system of the accounting entity presented according to the forms prescribed by accounting standards and accounting regimes.
– FR applies to all types of businesses established and operating under Vietnamese law. Businesses are obliged to prepare and submit truthful, accurate, and timely financial reports in accordance with legal regulations on accounting and statistics.

2. Causes of deviation in value after performing audit

Enterprises tend to give quite spectacular plans at the beginning of the year, and at the end of the year, the index is very poor, possibly due to unpredictable fluctuations of the market. The style of the business is usually at the beginning of the year with all the difficulties, in the middle of the year recovering and at the end of the year with good results. This shows the culture of Vietnamese business people, as well as a better way to show it to investors.

3. Recommendations for businesses to make financial statements

Businesses that lack transparency and have errors in their financial statements will face a challenging situation where they may encounter financial penalties and forced to delist.
– Raise awareness
– Strengthening and perfecting the Vietnamese legal system

4. Conclusion

In conclusion, the discovery of enterprises falling from profit to loss after an audit can have significant repercussions for both the businesses involved and the overall market. The causes for such a dramatic shift can be varied, ranging from mismanagement and fraudulent activities to economic downturns and changes in market dynamics. So it is crucial for regulators to impose strict sanctions on businesses found in violation of financial regulations to deter misconduct and protect investors.

For the full detail of this post, please reference on this link: http://hmlf.vn/businesses-transition-from-profit-to-loss-after-auditing-what-are-the-cause-sanctions-for-businesses-in-violation-and-legal-cautions-for-enterprises/

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn
Email: [email protected]

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