Circular 157: Handling Violations Regarding Audit Service Quality

Circular 157: Handling violations of audit service quality (illustrative photo)

Circular 157/2014/TT-BTC regulates the handling of violations regarding the quality of audit services concerning audit firms, practicing auditors, and the Head and members of the Inspection Team in controlling the quality of audit services. Specifically, as follows:

1. For audit firms

An audit firm with serious professional misconduct or violation of professional standards as regulated will be suspended from providing audit services for a period ranging from 3 to 6 months from the date the penalty decision takes effect in the following cases:

- The audit service quality inspection results are rated 3 "Audit service quality does not meet the requirements" in two consecutive inspections;- The audit service quality inspection results are rated 4 "Audit service quality is poor, with serious errors."

2. For practicing auditors

Practicing auditors with violations concerning the quality of audit services will be penalized according to regulations on the handling of administrative violations in the field of independent auditing.

3. The Head and members of the Inspection Team are not allowed to participate in the Inspection Team immediately following the detection of violations in the following cases:

- There is a request contrary to professional ethics or against the provisions of law during the inspection at the audit firm;- Failure to comply with the obligations of the Inspection Team members and the Head of the Inspection Team as stipulated in Clause 2, Article 17, and Clause 2, Article 18 of this Circular;

Note: The Head and members of the Inspection Team who violate the above regulations may be subject to disciplinary action by competent authorities based on the extent of the violation according to relevant legal provisions.

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

Ty Na

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