How should auditors update their knowledge?

Enterprises need to constantly update knowledge for their audit system, as regulations are always changing, which requires proactiveness from learners of auditing. Pursuant to Article 37, Decree 41/2018/ND-CP, entity violating against regulations on provision of refresher training for auditors shall be penalized as follows:

1. A warning shall be imposed on the organization approved by the Ministry of Finance to run refresher courses for audit practitioners and audit practice registration applicants committing one of the following violations:

a) Submitting post-course reports on the auditor refresher course to the Ministry of Finance less than 15 days after the specified deadline;

b) Failure to monitor and take attendance of the refresher course’s trainees;

c) Failure to conduct a survey on trainees’ opinions of the refresher course using evaluation slips;

d) Failure to issue certificates to the refresher course’s trainees and confirmation papers to auditors teaching refresher courses at the end of each course;

dd) Failure to comply with regulations on number of trainees per class;

e) Notifying the Ministry of Finance of the course’s contents, curriculum, time and place, lecturers’ details, the number of audit practitioners registering for the course before the course takes place or the changes in those details less than 15 days after the specified deadline;

g) Submitting the annual consolidated report on the auditor refresher course to the Ministry of Finance less than 15 days after the specified deadline.

2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the organization approved by the Ministry of Finance to run refresher courses for audit practitioners and audit practice registration applicants in the following cases:

a) The refresher course does not follow the contents and curriculum registered with the Ministry of Finance;

b) Submitting post-course reports on the auditor refresher course to the Ministry of Finance 15 days after the specified deadline or later;

c) Notifying the Ministry of Finance of the course’s contents, curriculum, time and place, lecturers’ details, the number of audit practitioners registering for the course before the course takes place or the changes in those details 15 days after the specified deadline or later;

d) Submitting the consolidated report on the auditor refresher course 15 days after the specified deadline or later;

dd) Providing false information, forging documents to gain approval to organize auditor refresher courses;

e) Failure to retain documents on auditor refresher courses in full.

3. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on organizations approved by the Ministry of Finance to run refresher courses for audit practitioners and audit practice registration applicants for one of the following violations:

a) Failure to submit post-course reports on the auditor refresher course to the Ministry of Finance;

b) Failure to notify the Ministry of Finance of the course’s contents, curriculum, time and place, lecturers’ details, the number of audit practitioners registering for the course before the course takes place or the changes in those details;

c) Failure to submit the consolidated report on the annual auditor refresher course;

d) Running refresher courses for audit practitioners and audit practice registration applicants for the purpose of recording time spent on refresher training without the Ministry of Finance’s approval;

dd) Reporting incorrectly the number of trainees attending the refresher course for audit practitioners or the time spent on the course;

e) Reporting the refresher course as if it was run despite the contrary;

g) Issuing certificates for attending the refresher course to trainees who did not participate in the course.

4. Additional penalty:

The organization that recommits any of the violations mentioned in Points d, e, f, g, Clause 3 of this Article shall be suspended from running auditor refresher course organizing works for 1-3 months from the day the decision on penalty imposition comes into effect (if the organization has the Ministry of Finance’s approval to organize auditor refresher courses at the time the violation is discovered).

5. Remedial Measure:

Return illegal profits earned by the violation mentioned in Point d, Clause 3 of this Article.

As an established company in the field of tax and legal consulting, Vinasc hopes to adequately inform our customers to help them mitigate the risk during operation in Vietnam. Should there be any further concern, please contact Vinasc’s Customer Care department for timely support.