To annul the Regulation on entrusting or hiring auditing firms to perform audits in Vietnam as of March 19, 2024

To annul the Regulation on entrusting or hiring auditing firms to perform audits in Vietnam as of March 19, 2024 (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On March 19, 2024, the State Auditor General issued Decision 01/2024/QD-KTNN, annulling Decision 08/2017/QD-KTNN on Regulations on using State Audit collaborators.

To annul the Regulation on entrusting or hiring auditing firms to perform audits in Vietnam as of March 19, 2024

The State Auditor General decided to fully annul Decision 08/2017/QD-KTNN on Regulations on using State Audit collaborators.

At that time, the provisions related to the Regulations on the using State Audit Collaborators will no longer be effective as of March 19, 2024.

Regulation on using State Audit collaborators issued together with Decision 08/2017/QD-KTNN stipulates the State Audit's using collaborators to perform auditing, consulting, and professional appraisal work according to the provisions of the Law on State audit office of Vietnam; stipulates the scope of use, standards, and conditions for collaborators; stipulates the rights, obligations, and responsibilities of parties related to the using collaborators.

Regulations on the using State Audit collaborators apply to the State Audit; collaborators performing tasks, and parties involved in audit activities of the State Audit.

State Audit workers are individuals or organizations both domestically and internationally who are currently not on the payroll or under labor contracts with the State Audit but meet the standards and conditions required by the State Audit to be utilized in performing certain tasks under service contracts.

In there:

- Collaborators are individuals, including: domestic and foreign experts, scientists, and managers, who are highly trained, have practical experience, and are highly skilled in accordance with the requirements of audit activities.

- Collaborators are organizations, including: agencies, units, businesses, scientific research, and training facilities at home and abroad, that have legal status, experience, and expertise suitable to the requirements of audit activities.

Principles for using State Audit collaborators include:

- Only use collaborators who meet the standards and conditions as prescribed in the Regulations on the using State Audit collaborators. The using collaborators is done through a written service contract to perform tasks.

- Using collaborators who are foreign individuals or organizations is only done when domestic collaborators do not meet professional requirements or according to the provisions of international treaties that the Socialist Republic of Vietnam has signed or participated in.

- When performing tasks, collaborators must comply with the regulations under the contract signed with the State Audit; do not assign other people or organizations to perform the work without the consent of the State Audit.

In case the collaborator is a member of the audit team, he must also comply with the provisions of Clause 2, Article 43 of the Law on State audit office of Vietnam and the current regulations of the State Audit.

- Collaborators are responsible before the State Audit and the law for the accuracy, truthfulness, and legality of their data, documents, results, and conclusions provided to the State Audit. The State Audit decides on the using data, documents of results, and conclusions of collaborators.

More details can be found in Decision 01/2024/QD-KTNN, taking effect on March 19, 2024.

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