Circular 157: Handling Divergent Opinions on Direct Inspection Results

Circular 157: Handling different opinions on direct inspection results (illustrative image)

Circular 157/2014/TT-BTC stipulates the handling of issues with differing opinions on the direct inspection results of audit service quality as follows:

- When there are issues with differing opinions on the inspection results, if necessary, the inspection agency can seek advice from experts or establish a Professional Council to review the inspection results;- The Professional Council includes representatives from the Ministry of Finance or the State Securities Commission, representatives from professional auditing organizations, and practicing auditors mobilized from audit firms. The Chairman of the Professional Council must be a senior official from the Ministry of Finance or the State Securities Commission. The practicing auditors mobilized from audit firms must have experience equivalent to the overall service contract managers. Members of the Professional Council must ensure independence from the inspected subjects, the Chief Inspector, and related inspection team members;- The inspected audit firm has the right to explain and provide the necessary information, serving as the basis for the Professional Council to make official conclusions on the inspection results;- Based on the documents provided by the inspection team and the inspected audit firm, members of the Professional Council will review, discuss, and evaluate to reach conclusions on each issue with differing opinions.

Additionally, this Circular stipulates that within 30 days from the date of signing the Inspection Report, the inspected audit firms must submit a Report on corrective measures and implementation of the Inspection Team’s recommendations to the inspection agency. If the inspected audit firm is a member of a professional auditing organization, the Report on corrective measures and implementation of the Inspection Team’s recommendations must also be sent to the professional auditing organization.

The Report on corrective measures and implementation of the Inspection Team’s recommendations serves as a reference document for subsequent inspections of audit service quality.

The inspection agency is responsible for preparing a Consolidated Report on inspection results and a Consolidated Report on violations detected through periodic direct inspections of the audit service quality of the subjects directly inspected by the unit.

For details, see Circular 157/2014/TT-BTC effective from October 23, 2014.

Ty Na

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