Cases that practicing auditors are not allowed to audit in Vietnam

Specifically, according to Article 19 of the Law on Independent Audit 2011 of Vietnam, cases that practicing auditors are not allowed to audit include:

Practicing auditors are not allowed to audit in the following cases:

One, as members, founding shareholders, or purchasing shares or capital contribution in the audited unit;

Two, as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

Three, as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units for the audited financial year;

Four, within two years from the time of resigning the managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

Five, 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;

Six, 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;

Seven, 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;

Eight, other cases in accordance with regulations of law.

The Law on Independent Audit 2011 of Vietnam was issued on March 29, 2011 and officially effective from January 01, 2012.

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