Sanction of acts violating provisions on acceptance for providing audit service

Article 27. Sanction of acts violating provisions on buying occupational liability insurance for the professional-practicing auditors or setting up of provision fund for occupational risks

acconting-services1. A warning or fine of between VND 500,000 and 1,000,000 shall be imposed for audit organizations which have bought occupational liability insurance for the professional-practicing auditors or set up of provision fund for occupational risks inconsistently with regulations of the Ministry of Finance.

2. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for audit organizations which fail to buy occupational liability insurance for the professional-practicing auditors or set up of provision fund for occupational risks.

Article 28. Sanction of acts violating provisions on acceptance for providing audit service

1. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for audit organizations agreed provision of audit service for clients when clients have requests in contrary to occupational ethics, specialized or professional requirements, or in contrary to law.

2. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 1 of this Article.

Article 29. Sanction of acts violating provisions on audit contract

1. A warning shall be imposed for audit organizations signing audit contracts with clients, units subject to audit with insufficient contents in accordance with regulation when providing audit service for clients units subject to audit.

2. A fine of between VND 5,000,000 and VND 10,000,000 for audit organizations and clients failing to conclude audit contract before auditing.

3. A fine of between VND 10,000,000 and VND 20,000,000 for audit organizations failing to conclude audit contract with clients before providing audit service.

Article 30. Sanction of acts violating provisions on confidentiality

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for individuals disclosing information related to audit dossier, clients and units subject to audit, unless clients and units subject to audit agreed or otherwise provided by law.

2. A fine of between VND 10,000,000 and VND 20,000,000 shall be imposed for audit organizations which fail to formulate and operate the system of internal control with the aim to ensure implementation of obligation on confidentiality.

3. Suspension of audit practice for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the professional-practicing auditors who use information related to audit dossier, clients, units subject to audit so as to infringe benefits of state, public interests, rights and lawful benefits of agencies, organizations, individuals.

4. Suspension of providing audit service for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the audit organizations which use information related to audit dossier, clients, units subject to audit so as to infringe benefits of state, public interests, rights and lawful benefits of agencies, organizations, individuals.

5. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 1 of this Article.

Article 31. Sanction of acts violating provisions on audit report

1. A fine of between VND 5,000,000 and 10,000,000 shall be imposed for the professional-practicing auditors who conduct one of the following violations:

a) Signing on audit reports improperly with competence according to regulations;

b) Signing audit reports before day of signing the audited financial statements.

dich-vu-thanh-lap-cong-ty-nuoc-ngoai2. A fine of between VND 5,000,000 and VND 10,000,000 shall be imposed for individuals who sign on audit reports when they are not the professional-practicing auditors.

3. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for audit organizations conducting one of the following violations:

a) Arranging the professional-practicing auditors for signing on audit reports improperly with competence according to regulations;

b) Issuing audit reports of which day of signing is prior day of signing the financial statements;

c) Making audit reports which are lack signatures of the professional-practicing auditors according to regulations;

d) Failing to make explanations, or make explanations insufficiently, untimely about the excluded contents at requests of competent agencies, representatives of owners of units subject to audit.

4. Suspension of audit practice for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the professional-practicing auditors who conduct any of following violations:

a) Signing on audit reports for more than three consecutive years for an audited unit;

b) Signing the audit reports after certificates of audit practice registration are invalid or ineffective.

5. Suspension of business in audit service for a period of between 03 months and 06 months, from the effective day of decision on sanction, for the audit organizations which conduct any of following violations:

a) Arranging the person to sign on audit reports who is not a practicing auditor;

b) Arranging an practicing auditor to sign audit reports for more than three consecutive years for an audited unit;

c) Arranging a practicing auditor to sign audit reports after certificate of audit practice registration is invalid or ineffective.