How will violations against regulations on notification and report obligations of auditing firms be penalized?

Pursuant to Article 66, Decree 41/2018/ND-CP, violations against regulations on notification and report obligations of auditing firms shall be penalized as follows:

1. A warning shall be imposed on the auditing firm committing one of the following violations:

a) Notifying the Ministry of Finance of changes that have to be notified, as specified in the Law on Independent Audit, less than 15 days after the specified deadline;

b) Submitting annual consolidated reports on the audit practitioners’ state of upholding requirements for practicing audit in the unit to the Ministry of Finance less than 15 days after the specified deadline;

c) Notifying the Ministry of Finance in writing less than 15 days after the specified deadline when the certificate of audit practice registration expires or is invalidated in cases where it is required by law to do so;

d) Notifying the loss or damage of certificate of eligibility to provide audit services to the Ministry of Finance less than 15 days after the specified deadline;

dd) Submitting reports on the state of upholding requirements for provision of auditing services to the Ministry of Finance annually or upon request less than 15 days after the specified deadline;

e) Submitting the annual report on the state of operation and the previous year’s financial statement to the Ministry of Finance less than 15 days after the specified deadline;

g) Notifying the Ministry of Finance in writing less than 15 days after the specified deadline when the provision of audit services resumes after being put on hold;

h) Submitting the application document for termination of provision of audit services to the Ministry of Finance less than 15 days after the specified deadline;

i) Submitting scheduled and unscheduled reports to the Ministry of Finance upon request less than 15 days after the specified deadline.

2. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the auditing firm committing of the following violations:

a) Notifying the Ministry of Finance of changes in contents that have to be notified, as specified in the Law on Independent Audit, 15 days after the specified deadline or later;

b) Submitting annual consolidated reports on the audit practitioners’ state of upholding requirements for practicing audit in the unit, alongside the annual reports on upholding requirements for practicing audit of each auditor, to the Ministry of Finance 15 days after the specified deadline or later;

c) Notifying the Ministry of Finance in writing 15 days after the specified deadline or later when the certificate of audit practice registration expires or is invalidated in cases where it is required by law to do so;

d) Notifying the loss or damage of certificate of eligibility to provide audit services to the Ministry of Finance 15 days after the specified deadline or later;

dd) Submitting reports on the state of upholding requirements for provision of auditing services to the Ministry of Finance annually or upon request 15 days after the specified deadline or later;

e) Submitting the annual report on the state of operation and the previous year’s financial statement to the Ministry of Finance less 15 days after the specified deadline or later;

g) Notifying the Ministry of Finance in writing 15 days after the specified deadline or later when the provision of audit services resumes after being put on hold;

h) Submitting the application document for termination of provision of audit services to the Ministry of Finance 15 days after the specified deadline or later;

i) Submitting scheduled and unscheduled reports to the Ministry of Finance upon request 15 days after the specified deadline or later.

3. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the auditing firm committing one of the following violations:

a) Failure to notify the Ministry of Finance of changes that have to be notified, as specified in the Law on Independent Audit;

b) Failure to submit annual consolidated reports on the audit practitioners’ state of upholding requirements for practicing audit in the unit, alongside the annual reports on upholding requirements for practicing audit of each auditor, to the Ministry of Finance;

c) Failure to notify the Ministry of Finance when the certificate of audit practice registration expires or is invalidated in cases where it is required by law to do so;

d) Failure to notify the loss or damage of certificate of eligibility to provide audit services to the Ministry of Finance;

dd) Failure to submit reports on the state of upholding requirements for provision of audit services to the Ministry of Finance annually or upon request;

e) Failure to submit the annual report on the state of operation and the previous year’s financial statement to the Ministry of Finance;

g) Failure to notify the Ministry of Finance in writing when the provision of audit services resumes after being put on hold;

h) Failure to submit the application document for termination of provision of audit services to the Ministry of Finance;

i) Failure to notify the Ministry of Finance in writing of establishment or termination of the auditing firm’s overseas office;

k) Failure to submit scheduled and unscheduled reports to the Ministry of Finance upon request.

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.