Circular 157/2014/TT-BTC: Form of Quality Control for Audit Services

Circular 157: Forms of Audit Service Quality Control (illustrative image)

Circular 157/2014/TT-BTC stipulates forms of audit service quality control, including the supervision of audit service quality and compliance with laws on independent audits, and direct inspection of audit service quality. To be specific as follows:

1. Supervision of audit service quality and compliance with laws on independent audits

- Evaluation of the annual self-inspection report on audit service quality submitted by audit firms to the Ministry of Finance and the State Securities Commission;- Evaluation of the quality of audit reports of audit firms through the financial statements of entities required to be audited, submitted to the Ministry of Finance, the State Securities Commission, and relevant authorities as prescribed;- Evaluation of compliance with regulations on the registration and maintenance of audit practice conditions of practicing auditors and business conditions for audit service provision of audit firms;- Supervision through the reports that audit firms submit annually to the Ministry of Finance, the State Securities Commission as prescribed, and other information collected during management.

2. Direct inspection of audit service quality

- The competent authority (Ministry of Finance, State Securities Commission) establishes periodic or unscheduled inspection teams at audit firms;- Inspection of signs of violations regarding audit service quality at audit firms and practicing auditors;- Inspection and verification of petitions, complaints, and denunciations related to independent audit activities.

Details can be found at Circular 157/2014/TT-BTC effective from October 23, 2014.

Ty Na

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