Newest regulations on suspension of audit practice in Vietnam

Newest regulations on suspension of audit practice in Vietnam (Internet image)

1. Cases of revocation of certificate of registration for audit practice in Vietnam

In Clause 1, Article 13 of Circular 202/2012/TT-BTC, the practicing auditor's Certificate of audit practice Registration may be revoked in the following cases:

- Fraud or falsification of registration documents to qualify for a Certificate of audit practice Registration;- Suspension from audit practice twice within thirty-six (36) consecutive months;- Convicted by a final court judgment;- Revocation of the Auditor's Certificate;- Other cases as prescribed by law.

2. Cases where the certificate of registration for audit practice is expired or no longer valid in Vietnam

Pursuant to Clause 1, Article 8 of Circular 202/2012/TT-BTC, certificate of registration for audit practice is expired or no longer valid in the following cases:

- Certificate of registration for audit practice expires;

- Certificate of registration for audit practice is revoked;

- During the period of being suspened to practice audit of auditor;

- Practicing auditor no longer works and terminates labor contract working full-time in the auditing enterprise stated on the certificate of registration for audit practice;

- Labor contract working full-time in the auditing enterprise expires or is terminated or has changed resulting no longer to guarantee that it is the labor contract working full-time as specified in Clause 3 Article 3 of Circular 202/2012/TT-BTC;

- Work permit in Vietnam of practicing auditor as foreigner expires or is no longer valid;

- Practicing auditors do not continue audit practice;

- Auditing enterprise is terminated its operation, dissolved, declared bankruptcy, divided, separated, merged, consolidated or converted the form of ownership;

- Practicing auditor is imprisoned by the court's judgement;

- Other cases prescribed by law.

3. Newest regulations on suspension of audit practice in Vietnam

According to Article 12 of Circular 202/2012/TT-BTC, the regulations on suspension of audit practice in Vietnam are as follows:

- A practicing auditor may be suspended from audit practice according to the provisions of law in the following cases:

+ Serious professional misconduct or severe violations of auditing standards and ethical standards in accounting and auditing;

+ Failure to comply with regulations of the competent authority regarding inspections and audits related to audit practice;

+ Administrative sanction for independent auditing activity violations twice within a period of thirty-six (36) consecutive months;

+ The practicing auditor does not satisfy the annual knowledge update hours as required by the Ministry of Finance;

+ Failure to fulfill the responsibilities of a practicing auditor as stipulated in Article 14 of Circular 202/2012/TT-BTC;

+ Other cases as prescribed by law.

- The Ministry of Finance has the authority to suspend audit practice and send the suspension decision to the suspended individual and the auditing firm where that person is registered to practice.

- During the suspension period, the practicing auditor is not allowed to sign audit reports and review results reports. Upon the end of the suspension period:

+ If the practicing auditor meets the requirements stipulated in Article 3 of Circular 202/2012/TT-BTC and the Certificate of audit practice Registration is still valid, they may continue their audit practice. The Ministry of Finance will add the auditor's name to the publicly disclosed list of registered auditors at the auditing firm within 15 days from the end of the suspension period;

+ If the practicing auditor complies with the requirements in Article 3 of Circular 202/2012/TT-BTC but the Certificate of audit practice Registration has expired, they must apply for a new Certificate. The reissuance dossier for the Certificate of audit practice Registration is stipulated in Clause 3, Article 9 of Circular 202/2012/TT-BTC;

+ If the practicing auditor’s Certificate of audit practice Registration is still valid but they no longer meet the requirements of Article 3 of Circular 202/2012/TT-BTC, they are not allowed to continue their audit practice.

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