From January 1, 2025, which individuals in Vietnam are not allowed to continue practicing auditing?
From January 1, 2025, which individuals in Vietnam are not allowed to continue practicing auditing?
Pursuant to Clause 2, Article 16 of the Law on Independent Auditing 2011 (amended by Clause 2, Article 3 of the Law on Amendments to the Securities Law, Accounting Law, Independent Auditing Law, State Budget Law, Law on Management and Use of Public Assets, Tax Administration Law, Personal Income Tax Law, National Reserve Law, Law on Handling of Administrative Violations 2024) on persons not allowed to register or continue practicing auditing:
Article 16. Persons not allowed to register or continue practicing auditing
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- Persons not allowed to continue practicing auditing include:
a) Persons specified at point b, clause 1 of this Article;
b) Individuals whose Certificate of Auditing Practice Registration has expired or is no longer valid as stipulated by the Ministry of Finance.
According to the above provisions, the following individuals are not allowed to continue practicing auditing:
- Individuals who are prohibited from practicing auditing under a legally effective court verdict or decision
- Individuals facing criminal prosecution
- Individuals convicted of economic management order violations, offenses related to financial, accounting, auditing positions without having had their criminal record expunged
- Individuals under administrative handling measures for education in commune, ward, or township, those sent to mandatory drug rehabilitation, or mandatory educational centers
- Individuals whose Certificate of Auditing Practice Registration has expired or is no longer valid as stipulated by the Ministry of Finance.
From January 1, 2025, which individuals in Vietnam are not allowed to continue practicing auditing? (Image from the Internet)
In which cases are practicing auditors not allowed to perform an audit in Vietnam?
Pursuant to Article 19 of the Law on Independent Auditing 2011, practicing auditors are not allowed to conduct audits in the following cases:
- Being a member, founding shareholder, or purchasing shares, contributing capital to the audited entity;
- Holding a management, executive position, member of the supervisory board, or chief accountant of the audited entity;
- Having previously held a management, executive position, member of the supervisory board, or chief accountant of the audited entity for the audited financial years;
- Within two years from the time of leaving a management, executive position, member of the supervisory board, or chief accountant of the audited entity;
- Currently or previously, in the immediately preceding year, conducting accounting, financial statement preparation, or performing internal audits for the audited entity;
- Currently or previously, in the immediately preceding year, performing other services that affect the independence of the practicing auditor as per the code of ethics for accounting and auditing professions;
- Having parents, spouse, children, siblings with significant financial interest directly or indirectly in the audited entity or holding a management, executive position, member of the supervisory board, or chief accountant of the audited entity, in accordance with the code of ethics for accounting and auditing professions;
- Other cases as stipulated by law.
What are the conditions for registering to practice auditing in Vietnam?
Pursuant to Article 15 of the Law on Independent Auditing 2011 (amended by Point d, Clause 2, Article 23 of the Law on Fees and Charges 2015) stipulating the registration of auditing practice:
Article 15. Registration of auditing practice
- Individuals meeting the following conditions may register for auditing practice:
a) Being a certified auditor;
b) Having at least thirty-six months of actual auditing experience;
c) Fully participating in knowledge updating programs.
- Individuals meeting the conditions in Clause 1 of this Article shall register for auditing practice and be granted a Certificate of Auditing Practice Registration as prescribed by the Ministry of Finance.
- The Certificate of Auditing Practice Registration is only valid when the holder has a full-time employment contract with an auditing enterprise, or a branch of a foreign auditing enterprise in Vietnam.
Thus, individuals meeting the following conditions may register for auditing practice:
- Being a certified auditor
- Having at least thirty-six months of actual auditing experience
- Fully participating in knowledge updating programs
