How will violations against regulations on independence be penalized?

Pursuant to Article 61, Decree 41/2018/ND-CP, violations against regulations on independence shall be penalized as follows:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed for taking up positions of management, administration, inspection committee member or chief accountant of a unit with public interest less than 12 months after completing the last audit for that unit.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed for carrying out auditing works for a unit with public interest for more than 4 consecutive fiscal years.

3. A fine ranging from VND 20.000.000 to VND 40.000.000 shall be imposed in the following cases:

a) The unit with public interest authorizes audit practitioners to audit financial statements for more than 4 consecutive fiscal years;

b) The auditing firm appoints audit practitioners to audit financial statements for a unit with public interest for more than 4 consecutive fiscal years.

4. Additional penalties:

a) The audit practitioner committing the violation mentioned in Clause 2 of this Article shall have his/her certificate of audit practice registration for 3-6 months suspended from the day the decision on penalty imposition comes into effect;

b) The auditing firm recommitting the violation mentioned in Point b, 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.

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