How will violations against regulations on provision of audit services by auditing firms be penalized?

Enterprises not complying with the regulations on provision of audit services shall be penalized pursuant to Article 43, Decree 41/2018/ND-CP:

1. A fine ranging from VND 5.000.000 to VND 10.000.000 shall be imposed on the enterprise using the word “kiểm toán” (audit) in its name despite being ineligible for providing audit services.

2. A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on the enterprise that fails to exclude itself from audit business despite being refused certificates of eligibility to provide audit services.

3. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed on the enterprise committing one of the following violations:

a) Providing audit services without a certificate of eligibility to provide audit services;

b) Continuing provision of services specified in Clause 1, Article 40 of the Law on Independent Audit after such provision being put on hold or suspended;

c) Continuing provision of services specified in Clause 1, Article 40 of the Law on Independent Audit after such provision being terminated or the certificate of eligibility to provide audit services being revoked.

4. Additional penalty:

The enterprise committing any of the violations 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 (if the enterprise is an auditing firm when the violation is discovered).

5. Remedial Measure:

Return illegal profits earned by violations mentioned in Clause 3 of this Article.

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.