Can certificates of auditors be lent in Vietnam? What are penalties for lending certificates of auditors to others in Vietnam?

Can certificates of auditors be lent in Vietnam?

Pursuant to Clause 2, Article 13 of the 2011 Law on Independent Audit, it stipulates the strictly-banned acts, specifically as follows:

2. Apart from the provisions in clause 1 of this Article, strictly banning auditors and practicing auditors perform the following acts:

a) Practicing audit as an individual;

b) Forging, leasing, lending, or permitting to use name and certificate of auditors, certificate of registering audit practice to perform audit activities;

c) Working for two auditing firms, branches of foreign auditing firms in Vietnam or more at the same time;

d) Other acts under regulations of law.

Thus, comparing the above regulations in Vietnam, lending your uncle's Certificate of auditors is a strictly prohibited act in auditing activities.

Can certificates of auditors be lent in Vietnam? What are penalties for lending certificates of auditors to others in Vietnam? (Image from the Internet)

What are penalties for lending certificates of auditors to others in Vietnam?

Article 21 of Decree 41/2018/ND-CP stipulates penalties for violations against regulations on management and use of accountant certificates and auditor certificates, as follows:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on individuals for one of the following violations:

a) Tampering with the accountant certificate’s contents;

b) Allowing an external entity to rent, borrow and use one's own accountant certificate and auditor certificate for the purpose of registration of accounting practice or registration of accounting practice at a unit other than that specified in the full-time labor contract.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for renting, borrowing and using an accountant certificate and a auditor certificate of a person who is not working as a full-time employee, or not working at all for one's own unit for the purpose of registration of accounting practice.

3. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for forging accountant certificates.

4. Additional penalties:

a) Any of violations mentioned in Point a, Clause 1 of this Article shall result in confiscation of evidence;

b) The accounting practitioner committing the violation mentioned in Point b, Clause 1 of this Article shall have his/her certificate of accounting practice registration suspended for 3-6 months period from the day the decision on penalty imposition comes into effect.

5. Remedial Measure:

Return illegal profits earned by the violation mentioned in Point b, Clause 1 of this Article.

According to this Article, because you do not work in the same unit as your uncle and you want to lend the Certificate to open your own accounting unit, your uncle may be fined from 10,000,000 to 20,000,000 VND, deprived of the right to use the certificate of accounting practice registration for a period of 03 to 06 months when lending a Certificate of auditors.

Best regards!