What are cases in which practicing auditors in Vietnam are not allowed to audit?

What are cases in which practicing auditors in Vietnam are not allowed to audit? 

Pursuant to Article 19 of the Law on Independent Audit in 2011, practicing auditors are not allowed to audit 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 book keeping, 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 practicing 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 are cases in which practicing auditors in Vietnam are not allowed to audit? - image from internet

What are prohibited acts for the state auditors in Vietnam?

Pursuant to Article 8 of the Law on State Audit Office of Vietnam in 2015, the state auditors in Vietnam are pohibited from carrying out following acts:

- Harassing, causing difficulties to audited units;

- Illegally intervening normal operation of audited units;

- Giving bribes, taking bribes, and/or brokering bribery;

- Making false or insufficient audit reports;

- Misuse of power and/or position for self-seeking purposes;

- Revealing state secrets or trade secrets of audited units;

- Revealing information about the audit progress and result that are not officially published.

In addition, the following acts of audited units and relevant entities are prohibited:

- Refusing to provide information, documents serving the audit at the request of SAV and state auditors;

- Obstructing the work of SAV and state auditors;

- Making false, untruthful, insufficient, unpunctual reports, or failure to provide objective information about the audit carried out by SAV;

- Giving bribes to state auditors and collaborators;

- Shielding violations against regulations of law on public finance and/or public property.

Every organization and individual is prohibited to illegally intervene the audit and audit result of SAV, state auditors, and collaborators.

What are requirements for an auditor to practice as an accounting service provider in Vietnam?

Pursuant to Article 58 of the Law on Accounting in 2015 stipulating registration of accounting practice:

Registration of accounting practice

1. The holder of an accountant certificate or auditor certificate according to the Law on Independent audit may register his/her accounting practice through an accounting firm or accounting household if he/she:

a) has full civil capacity; and

b) Has at least 36 months’ experience of finance, accounting, or audit works since graduation from university; and

c) Has participated in every mandatory refresher course.

...

As regulated above, if an auditor has accountant certificate, he/she may register his/her accounting practice through an accounting firm or accounting household.

In addition, he/she must:

- have full civil capacity; and

- have at least 36 months’ experience of finance, accounting, or audit works since graduation from university; and

- have participated in every mandatory refresher course.

Best regards!