How will violations against regulations on selection of auditing firms and audit practitioners be penalized?

Pursuant to Article 53, Decree 41/2018/ND-CP, violations against regulations on selection of auditing firms and audit practitioners shall be penalized as follows:

1. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed on units hiring auditing firms if the auditing firm does not carry out auditing works in accordance with regulations of law.

2. A fine ranging from VND 30.000.000 to VND 40.000.000 shall be imposed on units hiring auditing firms that does not meet all requirements for provision of audit services as specified in regulations of law.

3. A fine ranging from VND 40.000.000 to VND 50.000.000 shall be imposed on audited units for failure to undergo compulsory audit for financial statements, settlement reports of project completion, consolidated and general financial statements, and other auditing works as specified in regulations of the Law on Independent Audit and other relevant laws.

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.