How will violations against regulations on independence be penalized?

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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 the 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 the 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.

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 concerns, please contact Vinasc’s Customer Care department for timely support.

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