The obligations of auditing firms, branches of foreign auditing firms in Vietnam

Article 29. The obligations of auditing firms, branches of foreign auditing firms in Vietnam

bookkeeping-vinasc31. To operate under the contents stated in the certificate of sufficient conditions to carry on business of audit services.

2. To allocate staffs with appropriate qualifications to ensure the quality of audit services; to manage professional activities of practicing auditors.

3. Annually report the list of practicing auditors to the competent state agency;

4. To pay compensation for damage to the clients, the audited units on the basis of the audit contracts and under the provisions of law.

5. To purchase professional liability insurance for practicing auditors or to set up professional risk reserve fund in accordance with provisions of the Ministry of Finance.

6. To notify the audited unit when seeing that the audited unit has signs of law violation on economy, finance, accounting.

7. To provide information on the practicing auditors and auditing firms, branches of foreign auditing firms in Vietnam to the competent state agencies.

8. To provide audit records, documents as requested in writing by the state the competent state agencies.

9. To report periodically or irregularly the independent audit activities.

10. To provide timely, completely, accurately information and documents as requested by the competent agencies in the process of examination, inspection, and take responsibility for the accuracy and truthfulness of the information and documents which were supplied; to comply with provisions of competent state agencies for the examination, inspection.

11. To take responsibility before the law, clients for the audit results under audit contracts signed.

12. To take responsibility with the person who uses the audit results when such person:

a) Has benefit directly related to the audit results of the audited unit at the date of signing the audit statement;

b) Has a reasonable understanding on the financial statements and the basis for making the financial statements to be the accounting standards, the accounting regime and other provisions of concerned law;

c) Has used carefully the information in the financial statements audited.

13. To refuse to conduct audit when deemed not guaranteeing the independence, inadequate qualifications, insufficient conditions for conducting audit.

14. To refuse to conduct audit when clients, audited units request contrary to professional ethical, professional skill requirements or contrary to provisions of law.

15. To organize operation quality audit and to be subject to quality audit of audit services in accordance with provisions of the Ministry of Finance.

16. Other obligations in accordance with the law regulations.

Article 30. The cases that auditing firms and branches of foreign auditing firms in Vietnam are not entitled to audit

1. Auditing firms are not entitled to perform audit in the following cases:

a) Doing or having done in the preceding year the work of book keeping, making financial statement, or internal audit to the audited unit;

b) Doing or having done in the preceding year the services different from the services specified in point a of this clause affecting the independence of practicing auditors and auditing firms in accordance with provisions of the professional ethical standard of accounting, auditing.

c) Members participating in the audit, managers, administrators of the auditing firms being founding members, shareholders or purchasing shares or contributing capital into the audited units or having other economic, financial relations with the audited units in accordance with provisions of professional ethical standards of accounting and auditing;

d) Persons who are responsible for managing, administering the auditing firms have parents, spouse, child, natural brother, sister being founding members, shareholders or purchasing shares or contributing capital into the audited units and having significant influence on the audited units or persons who are responsible for management, administration, members of the inspection committee or the chief accountants of the audited units;

bookkeeping-vinasc1đ) Persons who are responsible for management, administration, members of the inspection committee or the chief accountants of the audited units and are the persons who contribute capital as well and have significant influence on the audited units;

e) Auditing firms and audited units established or participated in the establishment by the same individual or enterprise or organization;

g) Audited unit has made in the preceding year or ongoing the audit of financial statements for its own;

h) Other cases in accordance with law regulations.

2. Branches of foreign auditing firms in Vietnam are not entitled to conduct audit in the following cases:

a) Doing or having done in the preceding year the work of book keeping, making financial statement, or internal audit to the audited unit;

b) Doing or having done in the preceding year the services different from the services specified in point a of this clause affecting the independence of practicing auditors and the branches in accordance with provisions of the professional ethical standard of accounting, auditing;

c) Members participating in the audit, managers, administrators of the branches being founding members, shareholders or purchasing shares or contributing capital into the audited units or having other economic, financial relations with the audited units in accordance with provisions of professional ethical standards of accounting and auditing;

d) Persons who are responsible for managing, administering the branches have parents, spouse, child, natural brother, sister being founding members, shareholders or purchasing shares or contributing capital and having significant influence on the audited units or persons who are responsible for management, administration, members of the inspection committee or the chief accountants of the audited units;

đ) Persons who are responsible for management, administration, members of the inspection committee or the chief accountants of the audited units and are the persons who have significant influence on the branches as well in accordance with provisions of professional ethical standards of accounting and auditing;

e) Audited unit has made in the preceding year or ongoing the audit of financial statements for its own branches;

g) Other cases in accordance with law regulations.