Vietnam: In what cases are certified public auditors not allowed to participate in auditing credit institutions?
Can foreign certified public auditors participate in auditing credit institutions in Vietnam?
According to Article 13 of Circular 39/2011/TT-NHNN stipulating as follows:
Criteria of certified public auditors and representatives of independent audit organizations participating in auditing credit institutions and foreign bank branches
1. Possessing an audit practicing registration certificate issued by the Ministry of Finance;
2. Vietnamese certified public auditors must have at least 2 years' audit experience after the date of being granted an audit practicing registration certificate;
3. Foreign certified public auditors must have at least 2 years' audit experience in Vietnam;
4. Being other than a client provided with credit and other services under preferential terms by the to-be-audited bank, non-bank credit institution or foreign bank branch;
5. Not having been handled for violations of the law on independent audit during two years preceding the year of audit;
6. Not falling into cases they many not conduct audit specified in Article 19 of the Law on Independent Audit;
7. Meeting other requirements on independent audit provided in guiding documents of the Law on Independent Audit.
Accordingly, foreign certified public auditors must have at least 2 years' audit experience in Vietnam.
At the same time, foreign certified public auditors must meet the following additional criteria:
– Having an audit practicing registration certificate issued by the Ministry of Finance;
– Being other than a client provided with credit and other services under preferential terms by the to-be-audited bank, non-bank credit institution or foreign bank branch;
– Not being handled for violations of the law on independent audit in the 02 consecutive years before the audit year;
– Not having been handled for violations of the law on independent audit during two years preceding the year of audit;
In what cases are certified public auditors not allowed to participate in auditing credit institutions in Vietnam?
According to Article 19 of the Law on Independent Audit 2011 as follows:
The cases that certified public auditors are not allowed to audit
certified public auditors are not allowed to audit in the following cases:
1. as members, founding shareholders, or purchasing shares or capital contribution in the audited unit;
2. as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
3. as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units for the audited financial year;
4. within two years from the time of resigning the managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
5. as those who are doing or have done in the preceding year the work of bookkeeping, making financial statements or internal audit for the audited units;
6. as those who are doing or have done in the preceding year the service which is different from the services specified in clause 5 of this Article affecting the independence of certified public auditors in accordance with provisions of professional ethical standards of accounting and auditing;
7. with their parents, spouse, child, natural brother, sister who have remarkable direct or indirect financial interests in the audited units in accordance with provisions of professional ethical standards of accounting, auditing or those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
8. Other cases in accordance with regulations of law.
Accordingly, certified public auditors are not allowed to participate in auditing credit institutions in the following cases:
- As members, founding shareholders, or purchasing shares or capital contribution in the audited unit;
- As those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
- As those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units for the audited financial year;
- Within two years from the time of resigning the managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
- As those who are doing or have done in the preceding year the work of bookkeeping, making financial statements or internal audit for the audited units;
- As those who are doing or have done in the preceding year the service which is different from the services specified in clause 5 of this Article affecting the independence of certified public auditors in accordance with provisions of professional ethical standards of accounting and auditing;
- With their parents, spouse, child, natural brother, sister who have remarkable direct or indirect financial interests in the audited units in accordance with provisions of professional ethical standards of accounting, auditing or those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;
- Other cases in accordance with regulations of law
What is the maximum duration of the audit practicing registration certificate in Vietnam?
According to Article 6 of Circular 202/2012 / TT-BTC as follows:
Certificate of registration for audit practice
1. Certificate of registration for audit practice includes the following basic contents:
a) Full name, year of birth, hometown or nationality, photos of the person who is issued certificate of registration for audit practice;
b) Number and issuance date of the auditor's certificate
c) Name of the auditing enterprise where the auditor registered to work as practitioner;
d) Number of Certificate of registration for audit practice;
đ) The term of Certificate of registration for audit practice.
2. Certificate of registration for audit practice has a maximum term of 5 years (60 months) but not more than the day of 31/12 of the fifth year since the effective year of the certificate of registration for audit practice.
3. Form of certificate of registration for audit practice is prescribed in Appendix No.07/DKHN issued together with this Circular.
Accordingly, the audit practicing registration certificate has a maximum duration of 5 years (60 months) but not exceeding December 31 of the 05th year from the effective year of the audit practicing registration certificate.
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