Our Core Audit and Assurance Services Include:

• Statutory Audit or an independence audit of financial statements
• Compilation of Financial Information (for filing to ACAR)
• Special Purpose Audits (Agreed Upon Procedures)
• Reviews of Financial Statements

Overview of Audit Requirement in Cambodia

Audit and Assurance enhance the credibility and transparency of financial reporting, which is crucial for stakeholders. Audited financial statements foster trust, attract both local and international investment, and reduce the risk of financial misstatements or fraud.

Furthermore, assurance services play a key role in strengthening internal controls and improving risk management processes by identifying potential weaknesses and offering practical recommendations.

They also ensure that financial statements are accurate and compliant with the applicable accounting standards in Cambodia, including CIFRS and CIFRS for SMEs as well as CFRS for NFPEs (applicable Non-profit organizations.)

Ultimately, audit and assurance services support sustainable growth and reinforce financial health, operational resilience and increase the key stakeholders trust in Cambodian businesses.

Our audit approach is driven by a deep understanding of your business and the risks that matter most. We apply a top-down, risk-based methodology that focuses on areas with the greatest impact on your operations and the risks at financial statements level.

This allows us to deliver not only a thorough and efficient audit but also practical, value-adding insights. Our goal is to go beyond compliance—providing strategic feedback that supports informed decision-making and drives business improvement. Delivering consistent, high-quality service is our highest priority.

Statutory Audit Obligations

Under the Law on Accounting and Auditing (amended 2021) and Prakas No. 563 MEF.Prk (2020), specific categories of entities are required by law to have their financial statements independently audited by a registered audit firm with Accounting and Auditing Regular (ACAR).

The audit criteria set by the law and Prakas are as follow:

1) Entities Subject to Mandatory Audit

a) Public Enterprise

• Entities established and governed by the Law on General Articles of Association of Public Enterprises.
• Typically include State-Owned Enterprises (SOEs) involved in sectors such as energy, utilities, infrastructure, and telecommunications.
• Required to:
  • Maintain proper accounting records.
  • Prepare financial statements in compliance with Cambodian Financial Reporting Standards (CIFRS/CIFRS for SMEs).
  • Submit annual audited financial statements to ACAR.

b) Public Interest Entities (PIEs)

Entities that fall into either of the following categories:

• Listed or Pre-Listing Companies:
  • Those with equity or debt instruments traded or in the process of being listed on a public securities market.
• Fiduciary Businesses:
  • Institutions that hold or manage financial assets on behalf of the public.
  • Includes:
    • Commercial banks and specialized banks
    • Deposit-taking microfinance institutions (MFIs)
    • Credit unions and savings cooperatives
    • Insurance and reinsurance companies
    • Securities firms, brokers, and dealers
    • Investment funds and mutual funds

c) Qualified Investment Projects (QIPs)

• Enterprises approved by the Council for the Development of Cambodia (CDC) as QIPs under the Law on Investment.
• Must:
  • Conduct annual audits of their financial statements.
  • Submit reports to ACAR and relevant authorities including CDC and GDT.

d) Large Enterprises

Any enterprise (for-profit or not-for-profit) that meets at least two of the following three thresholds:

• Annual turnover exceeding KHR 4 billion (~USD 1 million).
• Total assets exceeding KHR 3 billion (~USD 750,000).
• Number of employees exceeding 100 persons.

Enterprises meeting these criteria are subject to independent audits regardless of sector or ownership type.

f) Not-for-Profit Organizations (NGOs)

• NPOs or NGOs are required to be audited if they meet one of the below:
  • Receive annual funding/donations ≥ KHR 2 billion (~USD 500,000).
  • Number of employees is 20

2) Financial Reporting and Audit Timeline

Entities subject to an independent audit must comply with the following financial reporting and submission deadlines:

Note: Failure to meet the above deadlines may result in financial penalties under Sub-Decree No. 79 ANKr.BK.

3) Financial Reporting Identification Number (FIN) and E-Filing System

• All reporting entities must apply for a Financial Reporting Identification Number (FIN) with ACAR before they can access the E-Filing System.
• The FIN serves as a unique registration ID for submission of audited financial statements.
• Submit FIN application form and supporting documents (business registration, tax patent, representative ID).
• Processing time: Approximately 10 working days.
• Once the FIN is issued, audited financial statements and audit reports must be uploaded through: https://efiling.acar.gov.kh

4) Penalties for Non-Compliance – Sub-Decree No. 79 ANKr.BK (2020)

The Royal Government’s Sub-Decree No. 79 ANKr.BK, issued on 12 June 2020, defines penalties for non-compliance with accounting and audit obligations. These penalties apply to enterprises, and organizations.

Why Choose VSD?

VSD is a trusted audit and assurance firm built on integrity, quality, and client commitment. Led by a partner with over 13 years of experience at international firms, we combine deep industry knowledge with a risk-focused, top-down audit approach.

Our work goes beyond compliance—delivering practical insights that support informed decisions and drive sustainable growth. With VSD, you can expect professionalism, efficiency, and consistently high-quality service.

We proudly serve clients across a wide range of sectors, including:

• Insurance Broking
• Manufacturing
• Property Development
• Trading
• Logistics
• Tourism, Hotels, and Resorts
• Telecommunications
• Event Management
• Gambling
• Retail and Marts
• Non-Governmental Organizations (NGOs)

What Sets us apart:

• Trusted Expertise
• Industry-Focused Insight
• Client-Centric Solutions
• Proven Performance
• Direct Access to Leadership

By choosing VSD, you are choosing a dedicated partner who values ethics, excellence, and your organization’s sustainable growth.