The cases that practicing auditors are not allowed to audit in Vietnam

The cases that practicing auditors are not allowed to audit in Vietnam
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What are the cases that practicing auditors are not allowed to audit in Vietnam? - Thanh Quy (Long An)

The cases that practicing auditors are not allowed to audit in Vietnam

The cases that practicing auditors are not allowed to audit in Vietnam (Internet image)

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

1. The cases that practicing auditors are not allowed to audit in Vietnam

According to Article 19 of the Law on Independent Audit 2011, practicing auditors are not allowed to audit in the following cases:

- as members, founding shareholders, or purchasing shares or capital contribution in the audited unit;

- as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

- as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units for the audited financial year;

- within two years from the time of resigning the managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

- as those who are doing or have done in the preceding year the work of book keeping, making financial statements or internal audit for the audited units;

- as those who are doing or have done in the preceding year the service which is different from the services specified in clause 5 of this Article affecting the independence of practicing auditors in accordance with provisions of professional ethical standards of accounting and auditing;

- with their parents, spouse, child, natural brother, sister who have remarkable direct or indirect financial interests in the audited units in accordance with provisions of professional ethical standards of accounting, auditing or those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

- Other cases in accordance with regulations of law.

2. Regulations on obligations of practicing auditors in Vietnam 

According to Article 18 of the Law on Independent Audit 2011, when practicing in the auditing firms, branch of foreign auditing firms in Vietnam, practicing auditors are obliged as follows:

- To comply with principle of independent audit operation;

- Not to interfere in the operation of clients, audited units during the course of audit;

- To refuse the audit for clients, audited units if considering that they does not guarantee the independence, insufficient qualifications, conditions in accordance with regulations of law;

- To refuse the audit in cases clients or audited units request contrary to professional ethical and requirements for professional skill or contrary to the provisions of law;

- To participate fully in the program of updating annual knowledge;

- Constantly improve professional knowledge and professional experience;

- To audit, review the audit records or to sign audit statements and take responsibility for the audit statement and its audit activities;

- Periodically and irregularly report its audit activities as required by the competent state agency;

- To comply with the provisions of this Law and the laws of the home country in case of practicing audit in the foreign countries;

- To executive the requirements for inspection and quality control of audit services in accordance with regulations of the Ministry of Finance;

- Other obligations in accordance with regulations of law

3. Rights of practicing auditors in Vietnam

According to Article 17 of the Law on Independent Audit 2011, when practicing in the auditing firms, branch of foreign auditing firms in Vietnam, practicing auditors have the following rights:

- To practice audit in accordance with regulations of the Law on Independent Audit 2011;

- To be independent on professional skill;

- To request the audited unit to provide adequate and timely necessary information, documents and explain the issues related to the audit contents; to request inventory of assets, debt comparison of the audited unit related to the audit contents; to inspect all records and documents related to economic and financial activities of the audited unit inside and outside of the unit during the course of audit;

- To inspect and confirm the economic, financial information related to the audited unit inside and outside of the unit during the course of audit.

- To request the concerned organizations and individuals to provide necessary documents and information related to the contents of the audit through the audited unit.

- Other rights in accordance with regulations of law.

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