The types of auditing firms and branches of foreign auditing firms in Vietnam

Article 20. The types of auditing firms and branches of foreign auditing firms in Vietnam

bookkeeping-vinasc31. The following enterprises are entitled to carry on business of audit service:

a) Limited liability companies with two or more members;

b) Partnerships;

c) Private enterprises.

2. Branches of foreign auditing firms in Vietnam are carried on business of audit services in accordance with the law regulations.

3. Enterprises, enterprises’ branches that are insufficient conditions to carry on business of audit services are not entitled to use the term “audit” in their names.

4. Auditing firms are not entitled to contribute capital to set up another auditing firm, unless the contribution of capital to foreign auditing firms to set up an auditing firm in Vietnam.

Article 21. Conditions for granting certificate of sufficient conditions to carry on business of audit service

1. When the Limited liability Company with two or more members requests for granting certificate of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

a) Having certificates of business registration, certificate of enterprise registration or certificate of investment in accordance with the law regulations;

b) Having at least five practicing auditors, in which must have at least two members contributing capital;

c) Legal representative, director, or general director of the limited liability company must be practicing auditor;

d) Ensuring the legal capital as stipulated by the Government;

đ) Contributed capital portion of member as organization shall not exceed the level set by the Government. Representative of member as organization must be practicing auditor.

2. When Partnerships request for granting certificates of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

a) Having certificates of business registration, certificate of enterprise registration or certificate of investment in accordance with the law regulations;

b) Having at least five practicing auditors, in which must have at least two partners;

c) Legal representative, director, or general director of the Partnerships must be practicing auditor;

3. When private enterprises request for granting certificates of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

bookkeeping-vinasc1a) Having certificates of business registration, certificate of enterprise registration or certificate of investment in accordance with the law regulations;

b) Having at least five practicing auditors, including private enterprise owner;

c) Private enterprise owner is director as well.

4. When the branches of foreign auditing firms in Vietnam request for granting certificates of sufficient conditions to carry on business of audit services, must meet fully the following conditions:

a) Foreign auditing firms are allowed to provide independent audit services in accordance with the law regulations of the country where foreign auditing firms locate its head offices;

b) Having at least two practicing auditors, including the director or general director of the branch;

c) Directors or general directors of branches of foreign auditing firms are not entitled to hold the managerial, administrative positions of other enterprises in Vietnam;

d) Foreign auditing firms must send documents to the Ministry of Finance ensuring responsibility for all obligations and commitments of branches of foreign auditing firms in Vietnam;

đ) Foreign auditing firms must ensure the maintenance of capital not less than the legal capital level as stipulated by the Government.

5. Within six months from the date of business registration of audit services which auditing firms, branches of foreign auditing firms in Vietnam are not granted certificates of sufficient conditions to carry on business of audit services must conduct the procedures to reject the business line of audit services.