Time limit for granting certificates of sufficient conditions to carry on business of audit services in Vietnam

Time limit for granting certificates of sufficient conditions to carry on business of audit services in Vietnam (Internet image)

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

1. Time limit for granting certificates of sufficient conditions to carry on business of audit services in Vietnam

Time limit for granting certificates of sufficient conditions to carry on business of audit services in Vietnam according to Article 23 of the Law on Independent Audit 2011 is as follows:

- Within thirty days from the date of receiving valid dossiers, the Ministry of Finance issues certificates of sufficient conditions to carry on business of audit services to the auditing firms, branches of foreign auditing firms in Vietnam; in case of refusal, the Ministry of Finance must reply in writing and state clearly the reasons.

- Where it needs to clarify the issues related to dossier requesting for granting certificates of sufficient conditions to carry on business of audit services, the Ministry of Finance requires auditing firms, branches of foreign auditing firms in Vietnam that request for certificates of sufficient conditions to carry on business of audit services to explain.

2. 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 according to Article 21 of the Law on Independent Audit 2011 are as follows:

- 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.

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