Vietnam: Criteria and conditions for establishment and operation of audit films being sole proprietorships

Vietnam: Criteria and conditions for establishment and operation of audit films being sole proprietorships (Illustrative Image)

n Section IV of Circular 60/2006/TT-BTC, the criteria and conditions for the establishment and operation of audit films being sole proprietorships in Vietnam are stipulated as follows:

- Audit films being sole proprietorships must be established and operate under the provisions of Article 20 and Article 23 of Decree 105/2004/ND-CP and Article 1 of Decree 133/2005/ND-CP;

- At the time of establishment and in the course of operation, an audit film being a sole proprietorship must have at least 3 persons possessing auditor's certificates, including its director (or general director);

- The owner of an audit film being a sole proprietorship must act as its director (or general director). The owner of an audit film being a sole proprietorship must possess an auditor's certificate and have actually practiced audit for at least 3 years from the date his/her auditor's certificate is granted. A sole proprietorship's owner must neither concurrently participate in the management and administration of nor sign employment contracts with other organizations or agencies.

Additionally, the criteria and conditions for members of the directorate of an audit film being a sole proprietorship in Vietnam are specified as follows:

- Having the professional ethics of accountancy and audit as required by the profession; being honest and upright, and having a good sense of observance of law;

- Where an audit film being a sole proprietorship has registered for the provision of other services that require, under law, practice certificates (such as accounting service, asset valuation service, etc.), directorate members directly in charge of such services must possess appropriate practice certificates as prescribed by law.

Detailed information can be found in Circular 60/2006/TT-BTC effective July 22, 2006.

Ty Na

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