How will violations against regulations on announcement and notification obligations of audit practitioners be penalized?

Pursuant to Article 67, Decree 41/2018/ND-CP, violations against regulations on announcement and notification obligations of audit practitioners shall be penalized as follows:

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1. A warning shall be imposed on the audit practitioner notifying or reporting to the Ministry of Finance less than 15 days after the specified deadline when:

a) No longer working for the Vietnamese auditing firm or branch of foreign auditing firm specified in the certificates of audit practice registration, hence having the full-time labor contract with that firm terminated;

b) The full-time labor contract with the Vietnamese auditing firm or branch of foreign auditing firm expires or is terminated or has changes that make the contract no longer full-time;

c) The foreign audit practitioner’s Vietnamese work permit expires or is invalidated;

d) Taking up or temporarily resigning from, as an individual, positions of legal representatives, director (or deputy director), chairman of the board of directors, chairman of the members’ council, chief accountant (or accounting manager), accountant, internal auditor or other positions in units and organizations other than one’s own auditing firm, or having changes in working time and titles in those units;

dd) The auditing firm undergoes termination of operations, dissolution, bankruptcy, full or partial division, acquisition, consolidation or change of ownership form;

e) Requested by the Ministry of Finance to provide scheduled or unscheduled information relevant to the audit practitioner’s work.

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2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the audit practitioner notifying or reporting to the Ministry of Finance 15 days after the specified deadline or later when:

a) No longer working for the Vietnamese auditing firm or branch of foreign auditing firm specified in the certificates of audit practice registration, hence having the full-time labor contract with that firm terminated;

b) The full-time labor contract with the Vietnamese auditing firm or branch of foreign auditing firm expires or is terminated or has changes that make the contract no longer full-time;

c) The foreign audit practitioner’s Vietnamese work permit expires or is invalidated;

d) Taking up or temporarily resigning from, as an individual, positions of legal representatives, director (or deputy director), chairman of the board of directors, chairman of the members’ council, chief accountant (or accounting manager), accountant, internal auditor or other positions in units and organizations other than one’s own auditing firm, or having changes in working time and titles in those units;

dd) The auditing firm undergoes termination of operations, dissolution, bankruptcy, full or partial division, acquisition, consolidation or change of ownership form;

e) Requested by the Ministry of Finance to provide scheduled or unscheduled information relevant to the audit practitioner’s work.

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3. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the audit practitioner that fails to notify or report to the Ministry of Finance when:

a) No longer working for the Vietnamese auditing firm or branch of foreign auditing firm specified in the certificates of audit practice registration, hence having the full-time labor contract with that firm terminated;

b) The full-time labor contract with the Vietnamese auditing firm or branch of foreign auditing firm expires or is terminated or has changes that make the contract no longer full-time;

c) The foreign audit practitioner’s Vietnamese work permit expires or is invalidated;

d) Taking up or temporarily resigning from, as an individual, positions of legal representatives, director (or deputy director), chairman of the board of directors, chairman of the members’ council, chief accountant (or accounting manager), accountant, internal auditor or other positions in units and organizations other than one’s own auditing firm, or having changes in working time and titles in those units;

dd) The auditing firm undergoes termination of operations, dissolution, bankruptcy, full or partial division, acquisition, consolidation or change of ownership form;

e) Requested by the Ministry of Finance to provide scheduled or unscheduled information relevant to the audit practitioner’s work.

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.

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