Scope and requirements of direct inspection of accounting services in Vietnam

Scope and requirements of direct inspection of accounting services in Vietnam (Internet image)

1. Scope and requirements of direct inspection of accounting services in Vietnam

Scope and requirements of direct inspection of accounting services in Vietnam according to Article 6 of Circular 09/2021/TT-BTC are as follows:

- The scope of a periodic inspection of accounting services business extends to the compliance with laws on registration and maintenance of accounting service practicing and business requirements and the compliance with professional standards, accounting regimes and relevant accounting legislation in the process of provision of accounting services of an inspectee. This inspection involves:

+ Documents and records related to the subject matters of the inspection of compliance with laws on registration and maintenance of accounting service practicing and business requirements of the inspectee, including:  Documents related to dossiers of registration and maintenance of accounting service practicing and business requirements of the inspectee, and others related to the subject matters of the inspection;

+ Records and documents on the inspectee's compliance with professional standards, accounting regimes and relevant accounting legislation in the course of practicing and providing accounting services with respect to accounting service contracts already terminated or contractual works already completed within the period from the date of business incorporation or the previous inspection to the date of inspection.

- The scope of an ad-hoc inspection of business of accounting services is prescribed under an inspection decision.

- Requirements of an inspection of business of accounting services

+ Compliance with accounting legislation;

+ Assurance of independence and objectivity of the inspection;

+ Compliance with confidentiality requirements in accordance with laws on accounting and professional standards.

+ Assessment opinions and conclusions must be clearly documented in inspection minutes on a basis of the Inspectorate’s professional review, assessment and judgement. Inspection conclusions regarding the inspectee’s errors and defects must be proved accordingly.

2. Frequency of periodic inspection of accounting services in Vietnam

The frequency of periodic inspection of accounting services according to Article 7 of Circular 09/2021/TT-BTC (amended in Circular 23/2024/TT-BTC which comes into force from July 1, 2024) is as follows:

- Inspection frequency

+ Undertake inspection visits every 3 years to accounting service providers with average accounting service revenue in the previous 3 years of at least 20 billion VND/year up to the inspection time. Accounting service revenue includes revenue from:  chief accountant services; financial statement preparation and presentation services and accounting consulting services according to annual performance reports.

+ Undertake inspection visits at least every 5 years to accounting service providers other than those specified in Point a, Clause 1 of Article 7 of Circular 09/2021/TT-BTC (amended in Circular 23/2024/TT-BTC which comes into force from July 1, 2024).  Determination of inspected entities is based on the average annual accounting service revenue in the 3 preceding years up to the time of inspection.

- If a conclusion in the minutes on the periodic direct inspection of accounting service business activities of an accounting service provider states that there is any professional error or any violation against accounting standards or professional ethics that causes serious consequences or, in fact, is likely to cause serious consequences, the accounting service provider should be re-inspected 1 or 2 year(s) later.

- In case where an accounting service provider has already been subjected to an ad-hoc accounting inspection or audit, they shall not be classified as the inspectee of the periodic inspection of accounting service business activities in that year.

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