Update: Fines for violations against regulations on auditing works according to Vietnam’s regulations

No.

Group of violations

Violation

Fine

1

Violations against regulations on purchase of professional liability insurance for audit practitioners or setting up professional risk reserve fund

Auditing firm purchasing professional liability insurance for audit practitioners or setting up professional risk reserve funds against the Ministry of Finance’s regulations

VND 5.000.000 - VND 10.000.000

Auditing firm that fails to purchase professional liability insurance for audit practitioners or set up professional risk reserve funds

VND 10.000.000 - VND 20.000.000

2

Violations against regulations on audit approvals

Carrying out auditing works without independence, sufficient professional skills and meeting requirements in accordance with regulations of law

VND 10.000.000 - VND 20.000.000

Carrying out auditing works when the client and audited unit have requirements that violate the code of ethics, professional requirements or regulations of law

3

Violations against regulations on audit contracts

Auditing firm making audit contracts which do not have sufficient contents with its clients or audited units

Warning

Auditing firm making audit contracts with their clients or audited unit after auditing

VND 5.000.000 - VND 10.000.000

Auditing firm that fails to make audit contracts with their clients or audited unit when auditing

VND 10.000.000 - VND 20.000.000

4

Violations against regulations on confidentiality

Revealing information relevant to audit documents, clients and audited units, except when it is permitted by the client and audited unit, or regulated by law

VND 5.000.000 - VND 10.000.000

Auditing firms for failure to create and operate an internal control system for ensuring the confidentiality obligations are fulfilled

VND 10.000.000 - VND 20.000.000

Using information relevant to audit documents, clients and audited units to infringe the interests of the State, public interests, rights and lawful interests of agencies, organizations and individuals

VND 30.000.000 - VND 40.000.000

5

Violations against regulations on audit statements

Signing audit statements ultra vires

VND 5.000.000 - VND 10.000.000

Signing audit statements before the financial statements’ audit dates

Signing audit statements despite the fact that he/she is not an audit practitioner

VND 10.000.000 - VND 20.000.000

Signing audit statements for more than three consecutive years for an audited unit

Appointing an audit practitioner to sign audit statements ultra vires

VND 10.000.000 - VND 20.000.000

Publishing an audit statement which is signed before the financial statements is

The audit statement does not have sufficient audit practitioners’ signatures

Failure to explain sufficiently and punctually the qualified opinions in audit statements upon request of the competent authority or representatives of audited units’ owners

Failure to explain the qualified opinions in audit statements upon request of the competent authority or representatives of audited units’ owners

VND 20.000.000 - VND 30.000.000

Appointing a person who is not an audit practitioner to sign audit statements

VND 20.000.000 - VND 40.000.000

Appointing an audit practitioner to sign audit statements for more than three consecutive years for an audited unit

6

Violations against regulations on independence

False information on and presentation of audit practitioners, auditing firms or Vietnamese branches of foreign auditing firms’ qualifications, experience and ability to provide audit services

VND 10.000.000 - VND 20.000.000

Purchasing, receiving, giving, holding audited units’ shares or capital, regardless of amount

Trading bonds or other assets belonging to audited units that affect independence as specified in the accounting and audit code of ethics

Receiving or demanding any kind of payment or benefit from audited units other than service fees and negotiated costs specified in the contract

Extorting, swindling the clients and audited units

Interfering in the business activities of clients and audited units during the audit process

Collecting debts for audited units

Colluding with audited units to tamper with accounting documents, financial statements, audit documents and alter audit results

VND 20.000.000 - VND 30.000.000

Forging or falsifying audit documents

Carrying out auditing works in prohibited cases as specified in regulations of law

Practicing audit as an individual

Working for two or more auditing firms or Vietnamese branches of foreign auditing firms at the same time

Contributing capital to two or more auditing firms

7

Violations against regulations on audit documents

Failure to document an audit

VND 20.000.000 - 30.000.000

8

Violations against regulations on retention of audit documents

Failure to fully or safely retain audit documents, causing loss or damage to the audit documents during usage and retention periods

VND 5.000.000 VND 10.000.000

Archiving audit documents later than 12 months after the audit statement’s publishing date

Failure to design and implement policies and procedures for upholding confidentiality, safety, comprehensiveness, accessibility and restorability of audit documents as specified in audit standards

Failure to design and implement policies and procedures for audit document retention for at least 10 years from the audit statement’s publishing date as specified in audit standards

9

Violations against regulations on destruction of audit documents

Deciding to destroy audit documents ultra vires

VND 10.000.000 - VND 20.000.000

Failure to establish a Destruction council, to apply the destruction method and procedure correctly, to make a list of audit documents to be destroyed and a report on destruction of audit documents when destroying these documents at the end of the retention period

Auditing firm for destroying audit documents before the end of the retention period

VND 20.000.000 - VND 30.000.000