Method of providing cross-border auditing services in Vietnam

Method of providing cross-border auditing services in Vietnam​ (Image from Internet)

1. Method of providing cross-border auditing services in Vietnam

The method of providing cross-border auditing services in Vietnam under Article 12 of Decree 17/2012/ND-CP is as follows:

- A foreign auditing firm, when providing cross-border auditing services in Vietnam, must form a partnership with a Vietnamese auditing firm that meets the legal requirements for providing auditing services.

- Only auditing firms that ensure compliance with the conditions for providing auditing services as prescribed in Article 21 of the Independent Auditing Law 2011 and Decree 17/2012/ND-CP, and that have obtained a Certificate of Eligibility for Auditing Business, are allowed to venture with foreign auditing firms to provide cross-border services.

- Foreign auditing firms, Vietnamese auditing firms partnering with foreign auditing firms to provide cross-border auditing services, and the audited entity must enter into an Audit Contract in accordance with Vietnamese law. The Audit Contract must contain the signatures of the lawful representatives of the foreign auditing firm, the Vietnamese auditing firm, and the audited entity.

- Foreign auditing firms and Vietnamese auditing firms must establish a Partnership Contract for providing cross-border auditing services. The Partnership Contract must clearly delineate the responsibilities of the foreign auditing firm and the Vietnamese firm in providing cross-border auditing services.

- Foreign auditing firms and Vietnamese auditing firms participating in a joint audit contract must appoint a practicing auditor responsible for the audit tasks assigned to their firm in the audit contract.

- The Audit Report must bear the signatures of the lawful representatives of the foreign auditing firm, the Vietnamese auditing firm, and the practicing auditors responsible for each firm’s responsibilities in the audit contract.

- The Audit Contract, Partnership Contract, audit files, and audit reports must be prepared in both Vietnamese and English.

- All payment transactions and money transfers related to the provision of cross-border auditing services must be conducted by bank transfer through authorized financial institutions in accordance with Vietnamese foreign exchange management laws.

2. Responsibilities of foreign auditing firms providing cross-border auditing services in Vietnam

The responsibilities of foreign auditing firms providing cross-border auditing services according to Article 13 of Decree 17/2012/ND-CP are as follows:

- Arrange personnel with appropriate expertise to ensure the quality of auditing services. Adhere to the regulations concerning prohibited acts, situations where auditing is not allowed for practicing auditors and auditing firms, and other related provisions stated in the Independent Auditing Law 2011 of Vietnam.

- Comply with Vietnamese auditing standards when providing cross-border auditing services in Vietnam.

- Pay taxes and fulfill other financial obligations related to the provision of cross-border auditing services in Vietnam as prescribed by current Vietnamese tax laws.

- Report semi-annually to the Ministry of Finance on the implementation status of cross-border auditing service contracts occurring within the period in Vietnam. The report format is determined by the Ministry of Finance.

- Designate a responsible person to represent the firm in reporting to and explaining to the Vietnamese authorities concerning the audit contract, audit files, audit reports, and other matters related to the provision of cross-border services in Vietnam.

- Submit annually audited financial statements accompanied by the audit report of an independent auditing organization and the commentary documents from the auditing regulatory authority where the firm is headquartered, regarding the implementation of legal provisions on auditing activities and other legal regulations of the firm, to the Ministry of Finance within 120 days from the end of the financial year.

- Fulfill the rights and obligations of auditing firms as prescribed in Articles 28 and 29, and adhere to other related provisions stated in the Independent Auditing Law 2011 of Vietnam.

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