Circular 157: Scope and Requirements for Direct Inspection of Audit Service Quality

Circular 157: Scope and Requirements for Direct Quality Inspection of Audit Services (illustrative image)

Article 11 of Circular 157/2014/TT-BTC stipulates the scope and requirements for periodic direct quality inspection of audit services. To be specific, as follows:

Scope of periodic direct quality inspection of audit services:

- Cover factors affecting the quality of audit services and the elements forming the quality control system of audit services according to the provisions of Quality Control Standard No. 1 (VSQC1);- Cover the audit services provided by the audit firm;- The audit service contracts selected for inspection must be audit files for which an audit report has been issued within the period from the establishment of the audit firm (for first-time inspected audit firms) or from the most recent inspection to the time of inspection, and must be capable of evaluating the quality of the audit services of the audit firm and practicing auditors;- Inspection documents include documents related to the establishment and implementation of audit service quality control policies and procedures of the audit firm; documents, audit files; accounting documents; policies related to personnel, minutes of member council meetings, plans of the audit firm's Board of Directors, and other relevant documents and files;- The inspection scope does not include matters unrelated to the quality of audit services and compliance with independent audit law and securities law by the audit firm and practicing auditors.

Requirements for the process of direct quality inspection of audit services:

- Comply with legal regulations on independent auditing and securities law;- Ensure independence in rights and interests between the members of the inspection team and the Head of the inspection team and the inspected subjects;- Ensure objectivity in organizing and performing the inspection tasks and in making conclusions about the inspection results;- Conducted on the basis of compliance with confidentiality requirements according to the provisions of the independent audit law, standards, and relevant professional ethical regulations;- After each direct inspection at each audit firm, the inspection team must prepare an Inspection Result Report. The evaluation contents and conclusions about the audit service quality inspection results must be based on the professional consideration, evaluation, and judgment of the members participating in the inspection team and must be clearly stated in the Inspection Result Report. Inspection conclusions about the limitations and errors of the inspected subjects must have adequate and appropriate evidence to support.

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

Ty Na

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