Sanction of acts violating provisions on independence of members participating in an audit

Article 32. Sanction of acts violating provisions on independence of members participating in an audit

acconting-services1. A warning shall be imposed for members participating in an audit and conducting one of the following violations:

a) Providing untrue information, introducing wrongly about qualification, experiences, and capability of service provision of the professional-practicing auditors and audit enterprises, foreign audit enterprises’ branches in Vietnam;

b) Vying the clients under forms of obstruction, enticement, bribe, collusion with clients and other unfair competitive acts.

2. A fine of between VND 10,000,000 and 20,000,000 shall be imposed for members participating in an audit and conducting one of the following violations:

a) Buying, accepting donations of, holding shares or contributed capitals of the audited unit regardless of quantity;

b) Buying, selling bonds or other assets of the audited unit causing effect to independence according to regulations on standards of occupational ethics in accounting and audit;

c) Accepting or requesting any of amount or benefit from the audited unit excluded service charges and costs agreed in the concluded contract;

d) Harassing or deceiving clients, units audited;

dd) Interfering the business operation of clients, units audited in the audit course.

3. A fine of between VND 20,000,000 and 30,000,000 shall be imposed for the professional-practicing auditors who conduct one of the following violations:

a) Auditing for clients while failing to ensure independence, insufficient professional capability, not eligible according to regulations of law;

b) Auditing for clients when clients have requests in contrary to occupational ethics, specialized or professional requirements, or in contrary to law.

4. Suspension of audit practice for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the professional-practicing auditors who conduct any of following violations:

a) Colluding, binding with the audited unit to falsify accounting documents, financial statements, audit dossier and reporting falsely audit results;

b) Forging or making false statements in audit dossiers;

5. Deprive of right to use certificate of audit practice registration for a period of between 12 months and 24 months, from the effective day of decision on sanction, for the professional-practicing auditors who conduct any of following violations:

a) Practicing audit under a personal capacity;

dich-vu-thanh-lap-cong-ty-nuoc-ngoaib) Working for more than two audit enterprises, foreign audit enterprises’ branches in Vietnam in the same time;

c) Contributing capital in more than two audit enterprises.

6. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 2, Clause 3, Clause 4 of this Article;

Article 33. Sanction of acts violating provisions on independence of audit organization

1. A warning shall be imposed for audit organizations conducting one of the following violations:

a) Providing untrue information, introducing wrongly about qualification, experiences, and capability of service provision of the professional-practicing auditors, audit organization, foreign audit enterprises’ branches in Vietnam;

b) Vying the clients under forms of obstruction, enticement, bribe, collusion with clients and other unfair competitive acts.

2. A fine of between VND 20,000,000 and 40,000,000 shall be imposed for audit organizations conducting one of the following violations:

a) Buying, accepting donations of, holding shares or contributed capitals of the audited unit regardless of quantity;

b) Buying, selling bonds or other assets of the audited unit causing effect to independence according to regulations on standards of occupational ethics in accounting and audit;

c) Accepting or requesting any of amount or benefit from the audited unit excluded service charges and costs agreed in the concluded contract;

d) Harassing or deceiving clients, units audited;

dd) Interfering the business operation of clients, units audited in the audit course.

e) To perform collection of debts on behalf of the audited units.

3. Suspension of business in audit service for a period of between 06 months and 12 months, from the effective day of decision on sanction, for the audit organizations which conduct any of following violations:

a) Colluding, binding with the audited unit to falsify accounting documents, financial statements, audit dossier and reporting falsely audit results;

b) Forging or making false statements in audit dossiers;

c) Conducting audit when fall in one of cases banned providing audit service according to law.

4. Remedial measures: Forcible remittance of illicit earnings from the commission of administrative violations specified in Clause 2, Clause 3 of this Article.