Vietnam's Unique Business Environment
While Vietnam is experiencing rapid economic growth, unique business practices and cultures still exist.
- Relationship-centered business culture
- Paper-based documentation
- Complex legal regulations and strong administrative measures
Due to these factors, internal corruption or misconduct often leads to the survival or demise of companies.
Serious Consequences of Internal Misconduct
What happens when internal misconduct is overlooked?
- Financial Loss : Direct losses due to embezzlement, money laundering, etc.
- Reputation Damage : Market disruption of consumer prices due to distribution of excess production
- Legal Sanctions : Fines, business suspension, etc., due to violation of local regulations
In particular, regardless of employee misconduct, irreversible administrative actions can occur due to long-term neglect of obligations such as accounting, environmental, reporting, and registration due to legal ignorance.
Key Elements of Effective Internal Auditing
The following elements are necessary for successful internal auditing:
- Work environment that allows easy review of local laws
- Independent or external audit organization
- Regular and systematic audit culture
- Employee education and strengthening of ethical awareness
Reduce Costs with Expert Help
Internal misconduct auditing requires expertise and experience.
- Interpretation of complex legal and accounting issues
- Know-how to detect hidden misconduct
- Providing an objective and fair perspective
- Designing an efficient audit process
Directly hiring personnel for the above tasks is very difficult, and the maintenance costs are also high. However, if you outsource these tasks to a law firm, you can obtain more accurate results at a lower cost.