Circular 69: Code of ethics and quality control standards applied in Vietnam

According to the Vietnam’s Framework for assurance service contracts promulgated together with Circular No. 69/2015/TT-BTC of the Ministry of Finance of Vietnam, the audit firm is responsible for quality control and conformity with code of ethics, including independence, in order to protect the public interest which is an essential part of high quality assurance services. These services must comply with standards for assurance services based on the following prerequisites:

- Members of contract execution group and the service contract quality controller (if any) must comply with regulations on assurance services in Part A and Part B of Code of Ethics for professional accountants, auditors, or other professional requirements, or requirements prescribed by law, and relevant regulations that are at least equivalent to the Code of Ethics for professional accountants, auditors;

- Auditors who are employees of the audit firms that execute the contract must comply with Standards for quality control No. 1 – Control of quality of audit firms providing audit services, examining financial statements, assurance services, and relevant services (hereinafter referred to as Standards for quality control No. 1), or other professional requirements, or requirements prescribed by law and regulations on responsibility of audit firms to quality control system that are at least equivalent to Standard for quality control No. 1.

Code of ethics for professional accountants and auditors

- Part A of Code of ethics for professional accountants and auditors provides for basic ethical principles that auditors must abide by, including: Integrity; Neutrality; Proficiency and discretion; Confidentiality; Professional qualification. Part A also provides a framework to be applied by professional accountants and auditors and to determine the risks that affect the observance of basic ethical principles, evaluate the seriousness of such risks, and take necessary measures to eliminate or minimize them.

- Part B of Code of ethics for professional accountants and auditors provides instructions for application of the framework in Part A to some specific situations that accountants and auditors may encounter during their practice, including independence. Code of ethics for professional accountants and auditors defines that independence includes both independence mindset and independence in manners. Independence ensures that auditors give their conclusion without being affected by elements that may influence such conclusion. Independence increases the chance that a person acts with integrity, objectivity, and maintains a professional skepticism.

Standard for quality control No. 1

Standard for quality control No. 1 provides regulations and instructions on responsibility of audit firms for developing and maintaining a quality control system for assurance service contracts, which consists of policies and procedures for each element of the quality control system. Such policies and procedures must be provided in writing and disseminate among employees and executives of the audit firm. Elements of quality control system under Standard for quality control No. 1:

- Responsibility of the Board of Directors for quality within the firm;

- Relevant standards and regulations on professional ethics;

- Acceptance and maintenance of customers’ relationship and specific service contracts;

- Human resources;

- Execution of service contracts;

- Supervision.

View more details at the Circular No. 69/2015/TT-BTC of the Ministry of Finance of Vietnam, effective from January 01, 2016.

Ty Na

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