Forms of audit service quality control in Vietnam

Forms of audit service quality control in Vietnam (Internet image)

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

1. Entities subject to audit service quality control in Vietnam

According to Article 7 of Circular 157/2014/TT-BTC, entities being subject to audit service quality control include:

- The auditing enterprises

- Certified auditors

2. Forms of audit service quality control in Vietnam

According to Article 6 of Circular 157/2014/TT-BTC, the forms of audit service quality control include:

- Monitoring audit service quality and the compliance with the law on independent audits;

+ Assessing annual report on self-inspection of audit service quality submitted to the Ministry of Finance and State Securities Commission by the auditing enterprises

+ Assessing quality of the auditing enterprises’ audit report through financial reports of the entities being subject to audits submitted to the Ministry of Finance and State Securities Commission and relevant agencies according to the regulation;

+ Assessing compliance by certified auditors and the auditing enterprises with the regulations on registration and maintenance of audit practicing conditions and auditing service business conditions respectively;

+ Carrying out monitoring through reports annually submitted to the Ministry of Finance and State Securities Commission by the auditing enterprises and other information collected during the management.

- Carrying out direct inspection of audit service quality

+ Competent agencies (the Ministry of Finance and State Securities Commission) shall establish an Inspectorate conducting regular or unexpected Inspection into the auditing enterprises.

+ Inspecting signs of violation of audit service quality by the auditing enterprises and certified auditors;

+ Inspecting and verifying complaints, accusations concerning independent audits.

3. Audit service quality control in Vietnam

Specifically, in Article 5 of Circular 157/2014/TT-BTC, the audit service quality control is as follows:

- Inspecting the construction, promulgation and implementation of policies and internal quality control procedures by the auditing enterprises.

- Inspecting performance of auditing service contracts fulfilled by the Auditing enterprises and certified auditors.

- Inspecting compliance with other regulations of the law on independent audit and relevant laws, including:

+ Registration and maintenance of auditing service business conditions by the auditing enterprises;

+ Registration and maintenance of auditing service business conditions by certified auditors.

+ Execution of independent audits on public-interest entities.

+ Fulfillment of obligations by the auditing enterprises, certified auditors and others.

- Monitoring of the exercising of the regulations of the law on independent audits and other relevant laws as stipulated in Paragraph 3 of Article 5 of Circular 157/2014/TT-BTC.

4. Purposes of audit service quality control in Vietnam

Purposes of audit service quality control include:

- Assessing the construction, dissemination and implementation of policies and internal quality control procedures by the auditing enterprises.

- Assessing compliance with professional procedures, laws and regulations by the Auditing enterprises and certified auditors with respect to provision of auditing services .

- Detecting, correcting and tackling at the right time faults detected during the tasks of audit service quality control.

- Making a contribution towards the amendment, supplement and completion of legal document system on independent auditing and at the same time enhancing quality of auditing services.

(Article 4 of Circular 157/2014/TT-BTC)

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