How will violations against regulations on forming joint venture with foreign auditing firms for provision of transboundary audit services in Vietnam be penalized?

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How will violations against regulations on forming joint venture with foreign auditing firms for provision of transboundary audit services in Vietnam be penalized?

Pursuant to Article 65, Decree 41/2018/ND-CP, violations against regulations on forming joint venture with foreign auditing firms for provision of transboundary audit services in Vietnam shall be penalized as follows:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the Vietnamese auditing firm forming joint venture with foreign auditing firms in the following cases:

a) Failure to retain the documents of the joint venture audits carried out with foreign auditing firms in full;

b) Failure to provide sufficiently and punctually the documents of completed joint venture audits to the authorities upon request;

c) Failure to explain sufficiently and punctually about audit statements, audit documents and other problems arising from joint venture audits with foreign auditing firms to the authorities.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the Vietnamese auditing firm forming joint venture with foreign auditing firms in the following cases:

a) Failure to retain the documents of the joint venture audits carried out with foreign auditing firms for provision of transboundary audit services in Vietnam;

b) Failure to provide the documents of completed joint venture audits with foreign auditing firms to the authorities upon request;

c) Failure to explain about audit statements, audit documents and other problems arising from joint venture audits with foreign auditing firms to the authorities.

d) Failure to notify the Ministry of Finance of the execution of joint venture contracts with foreign auditing firms for provision of transboundary audit services.

3. Additional penalty:

The foreign auditing firm committing any of the violations mentioned in Clause 2 of this Article shall have its certificate of eligibility to provide transboundary audit services suspended for 1-3 months from the day the decision on penalty imposition comes into effect.

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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