There is no state-issued audit fee schedule: the Law on Independent Audit only requires the audited entity to pay the fee under the signed contract (Clause 7, Article 39 of Law 67/2011/QH12). That is why quotes for the same company can differ several-fold between firms — the difference lies in how a firm builds hours and staff grades, not in any fixed “market price”. Understanding the composition is the precondition for negotiating in the right place and optimising the right way.
Composition: hours by grade + scope + extras
The largest component is audit-team hours by grade: partner/director review, manager coordination, seniors and assistants in the field — hourly rates climb steeply by grade, so the hour mix (how many partner hours versus assistant hours) drives the total more than any single rate. The second component is scope: the number of entities and locations (warehouses, branches), whether consolidated statements are involved, whether group reporting is required (a reporting package under the parent’s standards, group-format confirmations), and the number of draft rounds. The third is items outside the fixed fee: travel and subsistence for audits at distant plants, translation and bilingual reports, and out-of-scope work arising mid-engagement (prior-period re-examination, support for tax explanations). Two “hidden” drivers inflate fees without companies noticing: poor preparation that forces the audit team to do the accountants’ work for them (see FDI-LC-2023), and an audit calendar squeezed into the February–March peak when every firm is fully booked. A tax note: the audit fee is deductible for corporate income tax if actually incurred, related to production and business activities, and supported by the contract, invoice and payment documents (payments of VND 5 million or more require non-cash payment evidence) — keep the fee file with the year’s audit dossier.
Optimising the fee without trading away quality
The four most effective levers, in order of impact: (1) raise preparation quality — a complete PBC set on day one and one internal owner answering queries within 24 hours cuts the senior hours wasted on waiting and on doing the client’s work; (2) lock scope and the extras mechanism into the engagement letter — fixed fee, hourly rates and a cap on extras written down, out-of-scope work pre-approved in writing (see FDI-LC-2025); (3) shift work out of the peak — an interim audit in the fourth quarter for internal controls and stable balances, shortening year-end fieldwork; (4) structured tendering every two to three years — require every quote broken down by hours × grade and scope so you compare apples with apples, not totals. Three counterproductive “savings” run the other way: squeezing the fee below the level at which the firm can staff experienced people (you get an all-assistant team and a thinly evidenced opinion); cutting confirmations and stock-count attendance (small savings, large qualification risk); and switching firms every year over a small difference (a new firm’s first year always costs more in familiarisation — switching costs eat the difference). FDI companies should also verify the firm’s legal eligibility: an audit firm must meet the practice conditions of the Law on Independent Audit — an audit report from an ineligible firm is worthless however cheap the fee.
Frequently asked questions
What does a financial statement audit fee consist of?
Mainly audit-team hours split by grade (partner, manager, senior, assistant), plus scope (entities, stock counts, confirmations, group reporting), travel, bilingual reports if any, and pre-approved out-of-scope work. There is no statutory fee schedule — every fee is a contractual bargain.
How much does an FDI company pay for an audit per year?
There is no reliable “going rate”: the fee depends on revenue/asset scale, the number of locations, group reporting requirements and the readiness of the dossier. The only way to know your correct price is to take two or three quotes on one identical scope, split by hours × grade. Market reference numbers serve only for rough budgeting.
How can the audit fee be optimised without reducing quality?
Prepare the PBC dossier completely and answer queries fast; lock scope and an extras cap into the engagement letter; run an interim audit in the fourth quarter; tender in a structured way every two to three years. Avoid deep fee squeezing, cutting confirmations or stock counts, and switching firms annually.
Is the audit fee deductible for corporate income tax?
Yes, if actually incurred, related to production and business activities, and supported by the contract, invoice and payment documents — payments of VND 5 million or more must be non-cash. Keep the fee documents with the corresponding year’s audit file.
This article has been quality-reviewed by the FLAW AI Legal Council
