Conditions for granting certificate of sufficient conditions to carry on business of audit service in Vietnam

Conditions for granting certificate of sufficient conditions to carry on business of audit service in Vietnam (Internet image)

1. Conditions for granting certificate of sufficient conditions to carry on business of audit service in Vietnam

- When the Limited liability Company with two or more members requests for granting certificate of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

+ Having certificates of business registration, certificate of enterprise registration or certificate of investment in accordance with the law regulations;

+ Having at least five practicing auditors, in which must have at least two members contributing capital;

+ Legal representative, director, or general director of the limited liability company must be practicing auditor;

+ Ensuring the legal capital as stipulated by the Government;

+ Contributed capital portion of member as organization shall not exceed the level set by the Government. Representative of member as organization must be practicing auditor.

- When Partnerships request for granting certificates of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

+ Having certificates of business registration, certificate of enterprise registration or certificate of investment in accordance with the law regulations;

+ Having at least five practicing auditors, in which must have at least two partners;

+ Legal representative, director, or general director of the Partnerships must be practicing auditor;

- When private enterprises request for granting certificates of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

+ Having certificates of business registration, certificate of enterprise registration or certificate of investment in accordance with the law regulations;

+ Having at least five practicing auditors, including private enterprise owner;

+ Private enterprise owner is director as well.

- When the branches of foreign auditing firms in Vietnam request for granting certificates of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

+ Foreign auditing firms are allowed to provide independent audit services in accordance with the law regulations of the country where foreign auditing firms locate its head offices;

+ Having at least two practicing auditors, including the director or general director of the branch;

+ Directors or general directors of branches of foreign auditing firms are not entitled to hold the managerial, administrative positions of other enterprises in Vietnam;

+ Foreign auditing firms must send documents to the Ministry of Finance ensuring responsibility for all obligations and commitments of branches of foreign auditing firms in Vietnam;

+ Foreign auditing firms must ensure the maintenance of capital not less than the legal capital level as stipulated by the Government.

- Within six months from the date of business registration of audit services which auditing firms, branches of foreign auditing firms in Vietnam are not granted certificates of sufficient conditions to carry on business of audit services must conduct the procedures to reject the business line of audit services.

(Article 20 of the Law on Independent Audit 2011)

2. Dossiers of application for certificate of sufficient conditions to carry on business of audit services in Vietnam

Dossiers of application for certificate of sufficient conditions to carry on business of audit services include:

- A written application for certificate of sufficient conditions to carry on business of audit services;

- A copy of business registration certificate, certificate of enterprise registration certificates or investment certificate;

- A copy of certificate of registration of practicing audit of the practicing auditors;

- Full-time labor contracts of practicing auditors;

- Documents proving the contributed capital for limited liability companies;

- Other documents provided by the Ministry of Finance.

(Article 21 of the Law on Independent Audit 2011)

3. The time limit for granting certificates of sufficient conditions to carry on business of audit services in Vietnam

- Within thirty days from the day on which the valid application is received, the Ministry of Finance shall grant the Certificate of eligibility to provide audit services to the auditing firm or branch of the foreign audit firm in Vietnam. Male; In case of refusal, the Ministry of Finance must reply in writing and clearly state the reason.

- In case it is necessary to clarify issues related to the application file for the Certificate of eligibility for audit service business, the Ministry of Finance shall request the auditing firm or branch of foreign auditing firm in Vietnam. application for the Certificate of eligibility for business in explanatory audit services.

(Article 23 of the Law on Independent Audit 2011)

Diem My

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