Decree No. 26/2014/NĐ-CP: 09 cases where independent audit is required in Vietnam

According to the Decree No. 26/2014/NĐ-CP of Vietnam’s Government, banking inspection and supervision authorities have the right to request inspected and supervised entities to hire independent audit company to audit one, some, or all of contents of organizational structure, operation and finance when necessary in the following cases:

- The credit institution is likely to be placed under special control;

- The credit institution is eligible to have special control lifted;

- The credit institution placed under special control has to have its financial condition assessed, have its value, actual value of charter capital and reserve funds determined, which is the basis for implementation of remedial measures in accordance with regulations of law;

- The credit institution shall be reorganized as prescribed in Article 153 of the Law on Credit Institutions;

- A subsidiary, associate company and affiliated unit of a credit institution may affect the safety and soundness of the credit institution;

- Inspected and supervised entities that are considered financially weak and need to be restructured;

- The inspected and supervised entities have to have their financial condition, operation, level of safety and soundness assessed to provide a basis for implementation of safety measures.

- The contents of inspection and supervision are beyond the capacity of banking inspection and supervision authorities;

- Other cases as prescribed by law.

Inspected and supervised entities shall carry out an audit as prescribed above and shall pay for the audit.

View more details at Decree No. 26/2014/NĐ-CP of Vietnam’s Government, effective from June 01, 2014.

Thu Ba

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