What is the periodic direct inspection process of accounting services in Vietnam?
What is periodic direct inspection of accounting services in Vietnam?
Pursuant to Clause 2, Article 5 of Circular 09/2021/TT-BTC stipulates as follows:
Inspection forms
An inspection is carried out in a direct or indirect manner as follows:
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2. Direct inspection means the presiding inspector’s establishing the Inspectorate to inspect accounting services at accounting service businesses. Direct inspection comprises:
2.1. Periodic inspection
Annually, based on the time limits for periodic direct inspections specified in Article 7 of this Circular, the presiding inspector shall make a plan for direct inspection of accounting service business activities.
2.2. Ad-hoc inspection
The presiding inspector shall undertake an unscheduled inspection of an inspectee in one of the following cases:
a) An ad-hoc inspection is to verify petitions and complaint letters related to provision of accounting services;
b) An ad-hoc inspection is to check information about any sign of violation detected in the process of indirectly managing and inspecting accounting service business activities.
Thus, periodic inspection means the presiding inspector shall make a plan for direct inspection of accounting service business activities annually.
What is the periodic direct inspection process of accounting services in Vietnam? (Image from the Internet)
What is the periodic direct inspection process of accounting services in Vietnam?
Pursuant to Appendix I issued with Circular 09/2021/TT-BTC, it stipulates the periodic direct inspection process of accounting services includes 4 stages, specifically:
Stage I. Pre-inspection stage
- Step 1. Selecting the accounting service provider to be subject to inspection
- Step 2. Establishing the inspectorate
- Step 3. Informing the selected accounting service provider
Stage II. Inspection stage
- Step 1: The inspectorate works with the inspectee
- Step 2: Carrying out inspection according to subject matters of the inspection decision.
Stage III. Inspection completion stage
- After the direct inspection is completed, the inspectorate needs to draft the inspection minutes and discuss them with the inspectee’s legal representative.
- After ratifying the inspection minutes, the inspectee’s legal representative, the inspectorate’s leader and other members shall be responsible for signing the inspection minutes after completion of the inspection. .
- If the inspectee disagrees over the inspectorate’s assessment opinions or conclusions, they must clarify their disagreement in the inspection minutes.
- In case of discovering that the inspectee commits any administrative violation, the inspectorate must prepare and issue a notice of administrative violation, enclosing relevant documents and records, to the competent authority to seek their decision on administrative penalty in accordance with laws.
Stage IV. Post-inspection stage
- Step 1. Addressing dissenting opinions on inspection results (if any).
- Step 2. The presiding inspector makes and publishes the general review report on inspection results in accordance with this Circular
What is the inspection stage in the periodic direct inspection process of accounting services in Vietnam?
Pursuant to Appendix I issued with Circular 09/2021/TT-BTC, it stipulates that the inspection stage in the periodic direct inspection process of accounting services is carried out as follows:
Step 1: The inspectorate works with the inspectee
- The inspectorate’s leader announces the presiding inspector’s decision on the direct inspection of accounting services;
- Requesting the inspectee to assign persons having relevant functions and competencies to cooperate with the inspectorate;
- The inspectee’s representative reports on the situation of organization, operation and process of provision of accounting services;
- Signing the commitment on compliance with independence and confidentiality rules of the inspectorate’s members using the sample given in Appendix II to Circular 09/2021/TT-BTC in front of the inspectee's eyes;
- The inspectee provides required documents and records for the inspectorate.
Step 2: Carrying out inspection according to subject matters of the inspection decision.
Inspecting the compliance with laws on practicing and business of accounting services, relevant accounting legislation according to the following procedures:
- Inspecting, reviewing documents and records related to registration for practicing and business of accounting services of the inspectee;
- Studying documents and records to check whether the inspectee’s conformance to accounting service practicing and business requirements is maintained;
- Examining and studying documents and records to check whether the inspectee has discharged the prescribed reporting or notification obligations;
- Studying documents and records to check whether the inspectee has discharged their obligations to pay fees for issuance or re-issuance of the certificate of practicing in the accounting profession and the certificate of conformance to accounting service business regulations;
- Assessing the level of the inspectee’s compliance with laws on practicing and business of accounting services.
Next, for inspecting the conformance to professional standards, accounting regimes and relevant accounting legislation according to the following procedures:
- Selecting dossiers related to accounting service contracts for inspection in accordance with regulations of Article 17 of Circular 09/2021/TT-BTC;
- Studying documents and records to check whether the inspectee’s procedures and processes for provision of accounting services conform to professional standards, accounting regimes and relevant accounting legislation;
- Reviewing, examining and collecting suitable evidence for assessment of the inspectee’s compliance with professional standards, accounting regimes and relevant accounting legislation based on the table of assessment criteria, given in the Appendix III of Circular 09/2021/TT-BTC;
- Assessing the conformance to professional standards, accounting regimes and relevant accounting legislation of each inspected dossier.
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