Is the Department of Economy and Infrastructure eligible to appoint a chief accountant? According to current regulations, who is prohibited from practicing accounting in Vietnam?
Who is prohibited from practicing accounting?
According to Article 52 of the 2015 Law on Accounting of Vietnam as follows:
“Article 52. People prohibited from practicing accounting
The following people are prohibited from practicing accounting:
1. Minors; people who completely or partly lose their civil capacity as declared by the court; people forcibly sent to reform schools or rehabilitation centers.
2. People banned from practicing accounting under an effective court’s judgment or decision; people undergoing criminal prosecution; people sentenced to imprisonment or were convicted of economic crimes or other crimes related to finance, accounting and have not had their criminal records expunged.
3. Parents, adoptive parents, spouses, children, siblings of the legal representative, head, Director, General Director, deputies of the head, Deputy Director, Deputy General Director in charge of finance – accounting, and the chief accountant of the same accounting unit, except for private enterprises, single-member limited liability companies owned by individuals, and other cases specified by the Government.
4. People holding the position of managers, executive officers, treasurers, warehouse-keepers, buyers or sellers of assets in the same accounting unit except for private enterprises, single-member limited liability companies owned by individuals, and other cases specified by the Government.”
According to the above regulations:
- Minors; people who completely or partly lose their civil capacity as declared by the court; people forcibly sent to reform schools or rehabilitation centers.
- People banned from practicing accounting under an effective court’s judgment or decision; people undergoing criminal prosecution; people sentenced to imprisonment or were convicted of economic crimes or other crimes related to finance, accounting and have not had their criminal records expunged.
- Parents, adoptive parents, spouses, children, siblings of the legal representative, head, Director, General Director, deputies of the head, Deputy Director, Deputy General Director in charge of finance – accounting, and the chief accountant of the same accounting unit, except for private enterprises, single-member limited liability companies owned by individuals, and other cases specified by the Government.
- People holding the position of managers, executive officers, treasurers, warehouse-keepers, buyers or sellers of assets in the same accounting unit except for private enterprises, single-member limited liability companies owned by individuals, and other cases specified by the Government.
The above subjects are prohibited from practicing accounting.
Is the Department of Economy and Infrastructure eligible to appoint a chief accountant?
What are the regulations on the responsibilities of a chief accountant in Vietnam?
According to Article 55 of the 2015 Law on Accounting of Vietnam stipulating the responsibilities and rights of a chief accountant as follows:
- A chief accountant has the responsibility to:
+ Comply with regulations of law on accounting and finance of accounting units;
+ Organize the operation of the accounting apparatus in accordance with this Law;
+ Make financial statements in accordance with accounting regimes and accounting standards.
- The chief accountant has the right to perform accounting works independently.
- Chief accountants of regulatory agencies, organizations and public service agencies using state budget, and enterprises whose over 50% charter capital is held by the State, apart from the rights specified in Clause 2 of this Article, also have the right to:
+ Offer opinions in writing about employment, reassignment, pay raise, commendation, and disciplinary actions for accountants, warehouse-keepers, and treasurers;
+ Request relevant departments of the accounting unit to provide adequate documents related to the chief accountant’s accounting works and financial supervision works in a timely manner;
+ Preserve his/her opinions in writing if they are at odds with that of the decision maker;
+ Submit written reports to the legal representative of the accounting unit on discovered violations against regulations of law on finance and accounting in the unit. If the decision has to be complied with, the report shall be sent to the person superior to the decision maker or a competent authority. In this case the chief accountant is not responsible for the implementation of such decision.
Is the Department of Economy and Infrastructure eligible to appoint a chief accountant?
According to the provisions of Article 4 of Circular 04/2018/TT-BNV of Vietnam on appointment of chief accountant, accounting practitioners as follows:
“Article 4. Appointment of chief accountant or accountant in charge
1. Those accounting units prescribed in Clauses 1, 3, 4, 5, 6, 7, 8 of Article 2 of this Circular shall appoint chief accountants in accordance with Clause 1 Article 20 of Decree No. 174/2016/ND-CP .
2. The appointment of accountant in charge shall be done in accordance with Point a Clause 2 Article 20 of Decree No. 174/2016/ND-CP.”
Thus, the agencies with the task of collecting and spending state budgets at all levels will appoint chief accountants. The Department of Economy and Infrastructure is not responsible for budget collection and expenditure, so they are not allowed to appoint chief accountants, but only appoint accounting practitioners.
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