How will violations against regulations on audit and review services to units with public interest be penalized?
Pursuant to Article 57, Decree 41/2018/ND-CP, violations against regulations on audit and review services to units with public interest shall be penalized as follows:
1. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on the audit practitioner carrying out auditing works, signing audit statements or review reports for units with public interest without the Ministry of Finance’s approval or having such approval suspended or terminated.
2. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed in the following cases:
a) The auditing firm carries out auditing works for units with public interest despite being prohibited to do so;
b) The unit with public interest selects an auditing firm for audit and review services despite the auditing firm not having the Ministry of Finance’s approval;
c) The unit with public interest selects, or continues to carry out contracts which are signed with, an auditing firm for audit and review services despite the auditing firm’s approval to audit suspended or terminated.
3. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed on the auditing firm providing audit or review services for units with public interest without the Ministry of Finance’s approval or having such approval suspended or terminated.
4. Additional penalties:
a) The audit practitioner committing the violation mentioned in Clause 1 of this Article shall have his/her certificate of audit practice registration suspended for 3-6 months from the day the decision on penalty imposition comes into effect;
b) The auditing firm recommitting the violation mentioned in Clause 3 of this Article shall have its certificate of eligibility to provide audit services suspended for 3-6 months from the day the decision on penalty imposition comes into effect.
5. Remedial Measure:
Return illegal profits earned by violations mentioned in Clause 1, Point a Clause 2 and Clause 3 of this Article.
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