Regulations on accounting households in Vietnam

Regulations on accounting households in Vietnam (Internet image) 

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

1. Conditions for accounting households in Vietnam

A business household may provide accounting services after all of the conditions below are satisfied:

- The household has a certificate of business household registration;

- The individual or representative of the group of individuals who establish the business household is an accounting practitioner.

Accounting households are not required to have the Certificate of eligibility to provide accounting services.

(Article 65 of the Law on Accounting 2015)

2. Responsibility of accounting practitioners, accounting firms, and accounting households in Vietnam

- Perform accounting works as agreed in the contract.

- Comply with regulations of law on accounting and code of ethics for accountants.

- Take responsibility to the clients for provided accounting services and pay compensation for any damage caused.

- Keep improving professional knowledge and skills, participating in annual refresher courses as prescribed by the Ministry of Finance.

- Comply with accounting service quality control by the Ministry of Finance or an accounting association authorized by the Ministry of Finance.

- Buy professional liability insurance as prescribed by the Government.

(Article 67 of the Law on Accounting 2015)

3. Cases in which provision of accounting services are prohibited in Vietnam

The accounting firm or accounting household must not provide accounting services for another accounting unit when the manager or executive officer of the accounting firm or representative of the accounting household or the person who directly provides accounting services:

- Is a parent, adoptive parent, spouse, child, sibling of the manager, executive officer, chief accountant of the accounting unit, unless the accounting unit is a private enterprise or limited liability company owned by an individual, and other cases specified by the Government; or

- Has a economic – financial relationship with such accounting unit; or

- Does not have adequate professional knowledge or does not satisfy all conditions for provision of accounting services; or

- Is providing chief accountant’s services for a client who has a economic – financial relationship with such accounting unit; or

- Is requested by the accounting unit to work against the code of ethics or professional requirements; or

- Other cases prescribed by law.

(Article 68 of Law on Accounting 2015)

3. Cases where business households must terminate their accounting service business in Vietnam

An accounting household shall be shut down in one of the following cases:

- Accounting services are not provided for 12 consecutive months;

- The errors or violations mentioned in Clause 4 of Article 69 of the Law on Accounting 2015 are not eliminated within 60 days from the suspension date;

- Accounting service provision is terminated;

- The household falsifies accounting documents, financial statements and provide false information and reports, or colludes with another entity in doing so;

- The household has its certificate of business household registration revoked;

- All accounting practitioners in the same business household have their Certificates of Accounting Service Registration revoked.

(Clause 5, Article 69 of the Law on Accounting 2015)

Ho Quoc Tuan

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