Vietnam: Regulation on subject matter of an assurance service contract

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, subject matter of an assurance service contract may exist in many forms, for instance:

- The result or financial status in the past (e.g. information about financial status in the past, business outcomes and cash flow). In this case, information about the subject matter may be recorded, measured, presented, and explained in the financial statement.

- The result or financial status in the future (e.g. information about financial status in the future, business outcomes and cash flow). In this case, information about the subject matter may be recorded, measured, presented, and explained in the estimate.

- Result of non-financial activities (e.g. getting new customers). In this case, information about the subject matter might be indicators serving evaluation of effectiveness and productivity;

- Physical properties (e.g. capacity of a factory). In this case, information about the subject matter might be technical documents;

- System and procedures (e.g. internal control system or IT system). In this case, information about the subject matter might be the efficiency report;

- Behaviors (e.g. business administration, conformity with HR management rules and regulations). In this case, information about the subject matter might be conformity report or efficiency report.

Note: Different subject matters have different qualitative or quantitative characteristics, objectivity, subjectivity, past or future, and related to a point of time or period of time. Such characteristics affect:

- The accuracy of measurement or evaluation by established criteria;

- Persuasiveness of existing evidence.

Assurance service report may specify specific characteristics related to the users of assurance service report.

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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