Those who are not registered audit practice in Vietnam

Those who are not registered audit practice in Vietnam (Internet image)

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

1. Conditions for registration of audit practice in Vietnam

According to Clause 1, Article 15 of the Law on Independent Audit 2011, person who meets fully the following conditions is registered for audit practice:

- Being auditor;

- Having actual working time as auditor for full thirty-six months or more;

- Participating fully in the programs of updating knowledge.

2. Those who are not registered audit practice in Vietnam

Those who are not registered audit practice under Article 16 of the Law on Independent Audit 2011 include:

- Officials and public servants.

- Those who are banned from practicing audit upon valid judgments and decisions of the courts; those who are being prosecuted for penal liability; those who have been convicted one of the crimes on economy, position relating to finance and accounting but not be remitted; those who are subject to administrative measures of education at communes, wards and towns, sending into medical facilities, educational institutions.

- Persons who have criminal records on economic crimes from serious level or more.

- Those that violate the law on finance, accounting, auditing and economic management are sanctioned for administrative violations within one year from the date of the sanction.

- Those who are suspended to practice audit.

3. 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.

4. 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 this Law;

- 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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