Decree 41/2018/ND-CP stipulating administrative sanctions in the field of independent auditing and accounting

Decree 41/2018/ND-CP dated March 12, 2018, effective from May 1, 2018, stipulating administrative sanctions in the field of independent auditing and accounting.

DECREE

REGULATIONS ON HANDLING ADMINISTRATIVE VIOLATIONS IN ACCOUNTING AND INDEPENDENT AUDITORS

Pursuant to the Law on Organization of the Government dated April 30, 2013, 19 year of 6;

Pursuant to the Law on Handling administrative violations dated June 20, 6;

Pursuant to the Accounting Law dated 20 month 11 year 2015;

Pursuant to the Law on independent audit dated March 29, 3;

At the proposal of the Minister of Finance;

The Government promulgates the Decree on sanctioning of administrative violations in the field of accounting and independent audit.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree provides for administrative violations, statute of limitations, sanctioning forms, sanctioning levels, remedial measures, competence to make written records and competence to sanction acts. major in the field of accounting, independent auditing.

2. Acts of administrative violation related to the field of accounting and independent auditing which are not specified in this Decree shall be applied under the provisions of other Government Decrees on sanctioning of administrative violations. major in the field of state management concerned for sanctioning.

Article 2. Subject of application

1. Domestic and foreign individuals and organizations (hereinafter referred to as individuals and organizations) committing acts of administrative violation in the domain of accounting and independent auditing.

2. Business households and cooperative groups that violate the provisions of this Decree shall be sanctioned like violators.

3. Organizations being subjects of administrative sanctions in the domain of accounting and independent auditing according to the provisions of this Decree include:

a) State agencies commit violations but such acts are not in the assigned state management tasks;

b) Organizations and non-business units using state budget;

c) Organizations and non-business units that do not use state budget;

d) Enterprises established and operating under Vietnamese law; Male; branches and representative offices of foreign enterprises operating in Vietnam;

dd) Cooperatives and unions of cooperatives;

e) Professional organizations of accounting and auditing; accounting and auditing training institution;

g) Foreign organizations earning income from the provision of services or services associated with goods in Vietnam.

4. Persons competent to make minutes and sanction administrative violations, other relevant agencies, organizations and individuals.

Article 3. The statute of limitations for sanctioning administrative violations

1. The statute of limitations for sanctioning an administrative violation in the accounting domain is 2 years.

2. The statute of limitations for sanctioning administrative violations in the domain of independent audit is 1 year.

3. The time to calculate the statute of limitations for sanctioning an administrative violation specified in Clauses 1 and 2 of this Article is specified as follows:

a) For an administrative violation has ended, the statute of limitations is counted from the time the violation ends;

b) For acts of administrative violations that are being carried out, the statute of limitations is calculated from the time of detecting the violations.

4. In case of sanctioning of administrative violations against individuals transferred by agencies conducting legal proceedings, the statute of limitations shall be applied according to the provisions of Clauses 1, 2 and 3 of this Article. Time for agencies conducting legal proceedings to accept and consider shall be counted into the statute of limitations for sanctioning administrative violations.

5. Within the time limit specified in Clauses 1, 2 and 3 of this Article, if individuals or organizations deliberately shirk or obstruct the sanctioning, the statute of limitations for sanctioning administrative violations shall be recalculated from the time limit. the point of terminating the act of shirking or obstructing the sanctioning.

Article 4. Forms of administrative sanctions

1. Main sanctions:

For each administrative violation in the field of accounting and independent audit, the violating individual or organization shall be subject to one of the following main sanctions:

a) Warning;

b) Fine.

2. Additional sanctions:

Depending on the nature and seriousness of their violations, organizations and individuals that commit administrative violations in the field of accounting and independent audit may also be subject to one or more of the following additional sanctions:

a) Deprivation of the right to use the Accounting Service Registration Certificate, the Audit Practicing Registration Certificate for a period from 03 months to 06 months;

b) Revoke the right to use the Certificate of eligibility to provide accounting and audit services for a period from 01 month to 12 months;

c) To suspend the organization of updating knowledge for a period from 01 month to 03 months;

d) Confiscation of material evidences of administrative violations.

Article 5. Remedial measures

Individuals and organizations committing administrative violations in the field of accounting and independent audit, apart from being subject to the sanction specified in Article 4 of this Decree, may also be subject to remedial measures. The following:

1. Adding incomplete elements of the voucher;

2. Forcible destruction of false or forged accounting vouchers;

3. Forced additional preparation of vouchers which have not yet been made when the economic or financial profession arises;

4. Forcible cancellation of accounting vouchers which have been made many times for a arising economic or financial operation;

5. Forcible addition of incomplete elements of accounting books;

6. Forcible correction of accounting books to conform to reality in cases where there is no accounting voucher to prove that information information in accounting books or figures in accounting books are not consistent with accounting vouchers;

7. Forcible correction of accounting books to conform to reality in cases where information and data recorded in accounting books of the execution year do not follow those on accounting books of the preceding year;

8. Forcible supplementation to accounting books for acts of leaving assets and liabilities of the units outside the accounting books;

9. Forcible restoration of accounting books;

10. Forcing the preparation and presentation of financial statements strictly according to the accounting regimes and accounting standards;

11. Forcible submission and publicity of the audit report attached to the financial report;

12. Forcible correction of false or misleading information;

13. To appoint or hire people to act as accountants, chief accountants or accountants who fully meet the prescribed criteria and conditions;

14. Forcible submission of illegal benefits gained from conducting administrative violations.

Article 6. The fine levels in the field of accounting and independent auditing

1. The maximum fine level for an act of administrative violation in the field of accounting and independent audit is VND 50.000.000 for individuals and VND 100.000.000 for organizations.

2. The fine levels specified in Chapter II of this Decree are those applicable to organizations, except for the case specified in Clause 1, Article 7; 8; 9; ten; 10; 11; 13; 14; 15; 16; Article 17; Clauses 19 and 1 of Article 3; 21; Article 22; 23; 24; 26; 33; Clause 34 and Clause 1 of Article 3; Clause 36 of Article 1; Clause 38 and Clause 2 of Article 3; Clause 39 and Clause 1 of Article 2; Clause 48 of Article 1; Clause 57, Clause 1 of Article 2, and Article 61 are fines for individuals. For organizations committing the same violation acts, the fine level shall be 67 times higher than the fine level for individuals.

3. The sanctioning competence of the titles specified in Chapter III of this Decree is the competence applicable to an individual's administrative violation. In the case of fines, the competence to sanction organizations is twice as high as the competence to sanction individuals for that position.

chapter II

PENALTY FORMS AND THE LEVEL OF PENALTY IN ACCOUNTING AREA

Section 1. ACTS OF VIOLATION IN ACCOUNTING WORK

Article 7. Penalties for violations against general regulations on accounting law

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Wrongly applying regulations on writing; digits in accounting;

b) Wrongly applying regulations on monetary unit in accounting;

c) Falsely applying regulations on accounting period;

d) Wrongly applying the accounting regimes applied by the units.

2. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on organizations that commit acts of promulgating or announcing accounting standards, auditing standards, and accounting regimes beyond their competence.

Article 8. Penalties for violations against regulations on accounting vouchers

1. A fine of VND 3.000.000 to VND 5.000.000 for one of the following acts:

a) The accounting voucher sample does not have all the main contents as prescribed;

b) Erasing, correcting accounting vouchers;

c) Sign accounting vouchers with red ink and fading ink;

d) Sign accounting vouchers with pre-engraved signature stamp;

dd) Payment vouchers are not signed for each copy.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Making an accounting voucher with insufficient number of copies as prescribed for each type of accounting voucher;

b) Signing an accounting voucher without having enough contents of the voucher under the responsibility of the signer;

c) Signing accounting vouchers without authority;

d) A person's signature is inconsistent or inconsistent with the signature sample register;

dd) An accounting voucher does not have enough signatures according to the title specified on the voucher;

e) Failing to translate accounting vouchers in a foreign language into Vietnamese as prescribed;

g) To damage or lose accounting documents and vouchers that are in use.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Forging or perjuring accounting vouchers but not to the extent of being examined for penal liability;

b) Agreeing on or forcing others to forge or perjury accounting vouchers but not to the extent of being examined for penal liability;

c) Making accounting vouchers with dissimilar contents in case it is necessary to make accounting vouchers with many copies for an arising economic or financial operation;

d) Failure to make accounting vouchers when the economic or financial profession arises;

dd) Making multiple accounting vouchers for an arising economic or financial operation;

e) Paying money when the payment vouchers do not have sufficient signatures of competent persons according to the provisions of law on accounting.

4. Remedies:

a) Adding incomplete elements of the voucher for the act specified at Point a, Clause 1 of this Article;

b) Forcible destruction of false or forged accounting vouchers, for the act specified at Point a, Clause 3 of this Article;

c) Enforced supplementary preparation of documents not yet established when economic or financial operations arise, for the act specified at Point d, Clause 3 of this Article;

d) Forcible cancellation of accounting vouchers which have been made many times for a single economic or financial operation, for the act specified at Point e, Clause 3 of this Article.

Article 9. Penalties for violations against regulations on accounting books

1. A fine of VND 1.000.000 to VND 2.000.000 for one of the following acts:

a) Making accounting books without clearly stating the name of the accounting unit; book name, date, month and year of book making; closing date, month and year; lack of signatures of the book maker, chief accountant and the legal representative of the accounting unit; no pagination; do not stamp the overlap between pages of the accounting number on paper;

b) The accounting books are not written with ink pen (unless the unit chooses to record the accounting books by electronic means), inscribed above or below, overlapped, inscribed with lines; do not cross out the unwritten page section; do not add the total figure when the page is written, do not move the total figure of the previous book page to the top of the next book page;

c) Failure to bind in separate books for each accounting period or do not have sufficient signatures and seals as prescribed after being printed on paper (except books which are not required to be printed as prescribed for the case of units. choose to store accounting books on electronic media);

d) The model of accounting books does not contain sufficient main contents as prescribed.

2. A fine of VND 3.000.000 to VND 5.000.000 for one of the following acts:

a) The accounting books are not fully recorded according to the main contents as prescribed;

b) Correcting errors in accounting books against the prescribed method;

c) Failure to print accounting books on paper after closing them electronically for types of accounting books that must be printed on paper as prescribed.

3. A fine of between VND 5.000.000 and VND 10.000.000 for one of the following acts:

a) Failure to open accounting books at the beginning of an annual accounting period or from the date of establishment of the accounting unit;

b) There is no accounting vouchers proving that information or figures in accounting books or figures in accounting books are not correct with accounting vouchers;

c) Information and data recorded in accounting books of the year of implementation do not follow those of those recorded on accounting books of the preceding year or the accounting books are recorded intermittently from the time of opening to closing;

d) Failure to close accounting books in cases where it is required by law to close accounting books.

4. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Cancel ahead of time or intentionally damage accounting books;

b) Leaving outside the accounting books of assets and liabilities of the unit or related to the unit but not to the extent of being examined for penal liability.

5. Remedies:

a) Forcible addition of incomplete elements of accounting books specified at Point a, Clause 2 of this Article;

b) Forcible correction of accounting books to conform to reality in case of no accounting vouchers proving that information information on accounting books or figures in accounting books are not consistent with the prescribed accounting vouchers. at Point b, Clause 3 of this Article;

c) Forcible correction of accounting books to conform to reality in case information and figures recorded in accounting books of the year of implementation do not follow those in accounting books of the preceding year. specified at Point c, Clause 3 of this Article;

d) Forcible restoration of accounting books, for violations specified at Point a, Clause 4 of this Article;

dd) Forcible supplementation to accounting books for acts of leaving assets and liabilities of the units outside or related to the violating units specified at Point b, Clause 4 of this Article.

Article 10. Penalties for violations of regulations on accounting accounts

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Failure to do accounting in accordance with regulations of an accounting account;

b) Modifying accounting contents and methods of an accounting account or opening additional accounting accounts subject to the approval of the Ministry of Finance.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for the act of failing to strictly comply with the accounting account system promulgated or approved by the Finance Ministry.

Article 11. Penalties for violations of the regulations on preparing and presenting financial statements

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Prepare a financial statement with insufficient contents or in contravention of the prescribed form;

b) Financial statements without the signature of the maker, chief accountant, accountant, or legal representative of the accounting unit.

2. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Incomplete preparation of financial statements as prescribed;

b) Apply a financial statement form different from the provisions of accounting standards and regimes, unless approved by the Ministry of Finance.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Failure to prepare financial statements as prescribed;

b) Making financial statements inconsistently with figures on accounting books and accounting vouchers;

c) Preparing and presenting financial statements that do not comply with accounting regimes and accounting standards.

4. A fine of VND 40.000.000 to VND 50.000.000 for one of the following acts:

a) Forging financial statements, falsifying data on financial statements but not to the extent of being examined for penal liability;

b) Agreeing on or forcing others to forge the financial statements, to falsify data on the financial statements but not to the extent of being examined for penal liability;

c) Deliberately, agreeing or forcing others to provide or confirm untrue accounting information and data but not to the extent of being examined for penal liability.

5. Remedies:

a) Forcible preparation and presentation of financial statements in accordance with the accounting regimes and accounting standards, for the violation specified in Clause 3 of this Article;

b) Forcible destruction of forged or false financial statements, for violations specified in Clause 4 of this Article.

Article 12 .- Penalties for violations of the regulations on submission and publicity of financial statements

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Submitting financial statements to competent state agencies less than 03 months compared to the prescribed time limit;

b) Disclosure of financial statements is slower than the monthly import deadline.

2. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Publicizing incomplete financial statements as prescribed;

b) Submitting financial statements to competent state agencies without attaching audit reports to cases where the law requires auditing financial statements;

c) Submitting financial statements to competent state agencies at a later than the monthly import and export deadline compared with the prescribed time limit;

d) Publicizing financial statements without accompanying audit reports in cases where the law requires auditing financial statements;

dd) Disclosure of financial statements is delayed for a month or more compared to the prescribed deadline.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Publicing untruthful financial statements and figures;

b) Providing and publishing financial statements for use in Vietnam with heterogeneous data in an accounting period.

4. A fine of VND 40.000.000 to VND 50.000.000 for one of the following acts:

a) Failing to submit financial statements to competent state agencies;

b) Failure to publish financial statements as prescribed.

5. Remedies:

Forcible submission and publicity of audit reports attached to financial statements, for acts of violations specified at Points b and d, Clause 2 of this Article.

Article 13. Penalties for violations against regulations on copying and sealing accounting documents

A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed for any of the following violations:

1. Not to set up a Council and not to make "Minutes to determine that accounting documents cannot be copied" as prescribed.

2. The copied accounting documents do not have all signatures and seals (if any) of the concerned organizations and individuals according to regulations.

3. Temporary seizure, confiscation or sealing of accounting documents against the prescribed competence.

4. Failing to provide accounting documents to state agencies competent to seize, confiscate or seal.

Article 14. Penalties for violations against regulations on accounting inspection

1. A fine of VND 3.000.000 to VND 5.000.000 for one of the following acts:

a) Insufficient provision for the inspection team of accounting documents related to the inspection contents;

b) Failure to comply with the conclusion of the inspection team.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Failure to comply with the accounting inspection decision issued by a competent authority;

b) Failing to provide the inspection team with accounting documents related to the inspection contents;

c) Failing to translate foreign language documents and accounting vouchers into Vietnamese at the request of a competent state authority;

d) Failure to comply with the inspection team's conclusion.

Article 15.- Penalties for violations of regulations on preservation and archival of accounting documents

1. Warnings shall be imposed for one of the following acts:

a) Put accounting documents into archives for 12 months or more behind schedule;

b) Failure to arrange accounting documents to be archived according to the chronological order of occurrence and the annual accounting period.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Inadequate archiving of accounting documents as prescribed;

b) Preserving unsafe accounting documents, causing damage or loss of accounting documents during the archival period;

c) Using accounting documents in contravention of regulations;

d) Failure to carry out the inventory, classification and recovery of lost or damaged accounting documents.

3. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Cancellation of accounting documents when the archival period has not expired as prescribed by the Accounting Law but not to the extent of being examined for penal liability;

b) Failure to establish a destruction council, failure to comply with the destruction method, and failure to make a destruction record as prescribed when destroying accounting documents.

Article 16. Penalties for violations against regulations on property inventory

1. A fine of VND 1.000.000 to VND 2.000.000 for one of the following acts:

a) Failure to prepare a general report on inventory results or a report on inventory results without sufficient signatures as prescribed;

b) Do not reflect the difference and the results of handling the difference between the actual inventory data and the accounting data.

2. A fine of between VND 3.000.000 and 5.000.000 shall be imposed for failure to inventory property according to regulations.

Article 17. Penalties for violations against regulations on organization of the accounting apparatus, appointment of accountants or hiring of accountants

1. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Hire unqualified organizations and individuals to practice accounting to provide accounting services for their units;

b) Failure to re-appoint the chief accountant or accountant within the prescribed time limit;

c) Failure to organize the hand-over of the accounting work when there is a change in the accountant, chief accountant or accountant in charge;

d) Failure to notify as prescribed when the chief accountant or chief accountant is changed.

2. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Failure to organize the accounting apparatus of the accounting unit; not appointing accountants or chief accountants or hiring accounting service-providing organizations or individuals to work as accountants or chief accountants according to regulations;

b) Arranging accountants who are not allowed by law to act as accountants;

c) Assigning an accountant, chief accountant or accountant in charge of not meeting the prescribed standards and conditions;

d) Appointing the chief accountant or accountant in contravention of the order and procedures as prescribed.

3. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Arranging a person responsible for managing and operating the accounting unit concurrently acting as an accountant, storekeeper, cashier or buying and selling assets except for a private enterprise or limited liability company made by an individual. owners, enterprises of other types that do not have state capital and are micro enterprises as prescribed by law on SME support;

b) The appointment of people to act as chief accountants does not meet the prescribed standards and conditions;

c) Hiring a person to act as chief accountant who does not meet the prescribed criteria and conditions.

4. Remedies:

Appoint or hire an accountant, chief accountant or accountant in charge of meeting the prescribed criteria and conditions for the cases specified at Points a and b, Clause 1; Points b and c, Clause 2; Points b and c, Clause 3 of this Article.

Article 18 .- To sanction violations in organizing the training and granting of chief accountants' training certificates

1. Warnings shall be imposed for one of the following acts:

a) Organizing chief accountant fostering classes with the number of students / class in contravention of regulations;

b) Organize training courses for chief accountants for a period of more than 6 months.

2. A fine of VND 1.000.000 to VND 2.000.000 for one of the following acts:

a) Organize the chief accountant refresher course when it has not been registered with the Ministry of Finance or has registered it but has not been approved by the Ministry of Finance;

b) Failure to notify or report to the Ministry of Finance on course contents as prescribed.

3. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Failure to ensure the contents, program and study time for students as prescribed;

b) Failure to retain sufficient documents related to the course as prescribed.

4. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on a training institution that commits one of the following acts:

a) Opening a chief accountant training course when ineligible;

b) Opening chief accountant training courses for foreigners without approval of the Ministry of Finance;

c) Manage embryos and issue the certificate of chief accountant retraining of the training institution against the regulations of the Ministry of Finance.

5. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on training institutions that grant certificates of chief accountant training to unqualified trainees.

6. Remedies:

Force to pay back illegal benefits gained from conducting acts of violations specified in point a, b clause 4, clause 5 of this Article.

Section 2. ACTS OF VIOLATION OF REGULATIONS ON ACCOUNTING CERTIFICATES AND UPDATED KNOWLEDGE FOR ACCOUNTANT ACCOUNTANTS AND REGISTERS OF ACCOUNTING SERVICES

Article 19: Penalties for violations against the regulations on the accountant certificate examination dossiers

1. A warning shall be imposed on individuals who commit acts of incorrectly declaring information in the application file for taking the examination for the accountant certificate.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of incorrectly certifying the documents in the dossiers in order to qualify for the examination for the accountant certificate.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of correcting, forging, perjury about diplomas, certificates and other documents in the dossier to be eligible to take the contest for next certificate accountant.

4. Additional sanctioning forms:

Confiscate material evidence of violation for acts specified in clause 3 of this Article.

Article 20.- Penalties for violations against regulations on updating knowledge for practicing accountants and accounting service registrants

1. A warning shall be imposed on an organization approved by the Ministry of Finance to organize classes to update knowledge for practicing accountants and accounting service registrants to commit one of the following acts:

a) Organizing updating classes with the number of students / class in contravention of regulations;

b) Failure to issue Certificates to students who have participated in updating knowledge and Certifications for accountants and auditors participating in teaching update classes after each class;

c) Submit reports on the result of class organization to update accountant's knowledge after each class less than 15 days behind schedule;

d) Notify the Ministry of Finance of the plan or program to update knowledge for the following year or when there is a change in the plan or program of updating knowledge before organizing classes less than 15 days behind schedule. term specified;

dd) Submit the annual report on the results of organizing the updating class of accountants less than 15 days behind the prescribed time limit.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on organizations which are approved to update their knowledge of practicing accountants or accounting service registrants when performing one of the following acts: :

a) Organizing updating knowledge for practicing accountants, accounting practice registrants against the registered plans or programs or having notified the Ministry of Finance;

b) Submit the annual report on the results of organizing update knowledge classes to the Ministry of Finance after each class is 15 days or more behind schedule;

c) Submit annual reports 15 days or more behind schedule than the prescribed deadline;

d) Failure to retain sufficient documents about the updating organization as prescribed.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on organizations which are approved to update their knowledge of practicing accountants or accounting service registrants when performing one of the following acts: :

a) Failure to submit reports on class organization results to update accountants' knowledge after each class as prescribed;

b) Failure to submit the report on summary of results of organizing annual class to update accountant knowledge as prescribed;

c) Update knowledge to calculate the time of updating knowledge for practicing accountants and accounting service registrants without approval of the Ministry of Finance;

d) Granting the Certificate of participation in updating knowledge to practicing accountants and accounting service registrants without actually participating in updating knowledge;

dd) Incorrectly reporting the number of participants in updating knowledge or incorrectly reporting the number of hours of knowledge update of practicing accountants, accounting practice registrants;

e) Actually, there is no class to update knowledge, but the report is still organized.

4. Additional sanctioning forms:

Suspend the organization of updating knowledge of practicing accountants for a period from 01 month to 03 months from the effective date of sanctioning decisions for organizations committing one of the violations of regulations. mentioned in Clause 3 of this Article from the second time on.

5. Remedy:

Force to pay back illegal benefits gained from conducting acts of violations specified in point c, clause 3 of this Article.

Section 3. ACTS OF VIOLATION OF REGULATIONS ON ACCOUNTING SERVICES PRACTICE

Article 21.- Penalties for violations of the regulations on management and use of accountant certificates and auditor's certificates

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on individuals that commit one of the following acts:

a) Erasing, correcting, and changing the contents of the accountant's certificate;

b) Lending, borrowing, or using their accountant certificates or auditor's certificates to other organizations or individuals other than the units they are working for to register for accounting practice or translation practice. the accounting department at the unit where they actually do not work under a full-time labor contract.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on acts of hiring, borrowing, or using accountant certificates or auditor's certificates of persons who do not work or work under unsecured labor contracts. I said I worked full-time at my unit to register to practice accounting services.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of forging an accountant certificate.

4. Additional sanctioning forms:

a) Confiscate material evidence of the violation, for acts specified at Point a, Clause 1 of this Article;

b) Deprivation of the right to use the Certificate of Accounting Practicing Registration for a period of between 03 months and 06 months from the effective date of the sanctioning decision against the practicing accountant violating the provisions of Point b, Clause 1 of this Article.

5. Remedies:

Force to submit illegal benefits gained from conducting acts of violation specified in point b, clause 1 of this Article.

Article 22.- Penalties for violations of regulations on accounting service registration dossiers

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of incorrectly certifying the documents in the dossiers in order to satisfy the conditions for being granted the accounting service registration certificates.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for acts of making false declaration in order to satisfy the conditions for being granted the accounting service registration certificates.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of forging or perjuring documents in the dossiers in order to be eligible for the issuance of Accounting Service Registration Certificates.

4. Additional sanctioning forms:

Confiscate material evidence of violation for acts specified in clause 3 of this Article.

Article 23.- Penalties for violations against regulations on management and use of Accounting Service Registration Certificates

1. A warning shall be imposed for the act of returning the certificate of accounting service practice registration to the Ministry of Finance according to the regulations less than 15 days behind the prescribed time limit.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Return the certificate of accounting service registration to the Ministry of Finance 15 days or more behind schedule;

b) Using the expired or no longer valid Certificate of Accounting Practitioner Registration to provide accounting services.

3. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Practicing accounting services without obtaining the Certificate of accounting service registration;

b) Continuing to practice accounting services when the Certificate of Accounting Practice Registration expires or is no longer valid;

c) Failure to return the Certificate of accounting practice registration to the Ministry of Finance as prescribed.

4. Remedies:

Force to pay back illicit benefits gained from committing acts of violation specified in Clause 3 of this Article.

Section 4. ACTS OF VIOLATION OF REGULATIONS ON ACCOUNTING SERVICES BUSINESS

Article 24. Penalties for violations against regulations on application for the Certificate of eligibility to provide accounting services

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of incorrectly certifying documents in the dossiers in order to be eligible for the grant of certificates of eligibility to provide accounting services.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for acts of incorrectly declaring in the dossier in order to satisfy the conditions for being granted the Certificate of eligibility to provide accounting services.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for fraudulent acts of forging dossiers in order to qualify for the grant of certificates of eligibility to provide accounting services.

4. Additional sanctioning forms:

Confiscate material evidence of violation for acts specified in clause 3 of this Article.

Article 25. Penalties for violations against regulations on management and use of Certificates of eligibility to provide accounting services

1. Warnings shall be imposed on organizations when they commit one of the following acts:

a) Return the Certificate of eligibility to provide accounting services as prescribed to the Ministry of Finance less than 15 days behind the prescribed time limit when the accounting service is revoked or terminated;

b) Procedures for re-issuance of the Certificate of eligibility to provide accounting services less than 15 days behind schedule in cases where the Certificate is required to be reissued as prescribed in Clause 1 Article 63 of the Law on Accounting. .

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on organizations for committing one of the following acts:

a) Return the Certificate of eligibility to provide accounting services to the Ministry of Finance 15 days or more later than the prescribed time limit upon termination of accounting service business or when the Certificate is revoked. qualified for accounting service business;

b) Modification or erasure changes the content of the Certificate of eligibility to provide accounting services;

c) Failure to carry out procedures or carry out procedures for reissuance of the Certificate of eligibility to provide accounting services in cases where the Certificate is required to be reissued as prescribed in Clause 1 Article 63 of the Law on Accounting 15 days or more later. up against the prescribed time limit;

d) Lease or lend the Certificate of eligibility to provide accounting services.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on an organization that fails to return its Certificate of eligibility to provide accounting services to the Ministry of Finance upon termination of its accounting service business or upon termination of its accounting service business. revoke the Certificate of eligibility to provide accounting services.

4. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for forging the Certificate of eligibility to provide accounting services.

5. Additional sanctioning forms:

Confiscate material evidence of violation, for acts specified at Point b, Clause 2 of this Article.

6. Remedies:

Force to submit illegal benefits gained from conducting acts of violation specified in point d, clause 2 of this Article.

Article 26. Penalties for violations against regulations on provision of accounting services

1. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for false introduction of qualifications, experiences, abilities and conditions of providing services of practicing accountants and business enterprises. accounting services.

2. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of colluding or linking up with customers to provide or confirm false information when providing accounting services.

Article 27. Penalties for violations against regulations on preservation and archival of accounting service records

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of preserving or retaining inadequate and unsafe accounting service dossiers during the course of use and during the archival term.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for failure to keep accounting service dossiers according to regulations.

Article 28. Penalties for violations against regulations on provision of accounting services

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on enterprises that do not meet conditions to provide accounting services but fail to carry out procedures for deleting the phrase "accounting services" from their names according to regulations.

2. A fine of between VND 40.000.000 and 50.000.000 shall be imposed on an enterprise that commits one of the following acts:

a) Providing accounting services without the Certificate of eligibility to provide accounting services;

b) Continuing to provide accounting services after suspending the provision of accounting services; being suspended from providing accounting services; have the accounting service business terminated or the Certificate of eligibility to provide accounting services has been revoked.

3. Additional sanctioning forms:

Revoke the right to use the Certificate of eligibility to provide accounting services for a period of between 03 months and 06 months from the effective date of the sanctioning decision against the enterprise committing acts of violation specified in point b clause 2 of this Article.

4. Remedies:

Force to submit illegal benefits gained from conducting acts of violations specified in clause 2 of this Article.

Section 5. ACTS OF VIOLATION OF REGULATIONS ON PROVISION AND USE OF CROSS-BORDER ACCOUNTING SERVICES

Article 29. Penalties for violations against regulations on provision of cross-border accounting services

1. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on the foreign accounting service enterprises that commit acts of forging, erasing or correcting dossiers in order to satisfy the conditions for being granted certificates. conditions for providing cross-border accounting services in Vietnam.

2. A fine of between VND 40.000.000 and 50.000.000 shall be imposed on a foreign accounting service enterprise that commits one of the following acts:

a) Providing cross-border accounting services in Vietnam without a Certificate of eligibility to provide cross-border accounting services in Vietnam;

b) Continuing to provide cross-border accounting services in Vietnam upon suspending, terminating the provision of accounting services, suspending the provision of accounting services, or having the Certificate of Eligibility revoked. providing cross-border accounting services in Vietnam.

3. Additional sanctioning forms:

Revoke the right to use the Certificate of eligibility to provide cross-border accounting services in Vietnam for a period of between 03 months and 06 months from the effective date of the sanctioning decision for the translation business. The foreign accounting department commits the violation specified at Point b, Clause 2 of this Article.

4. Remedies:

Force to submit illegal benefits gained from conducting acts of violations specified in clause 2 of this Article.

Article 30. Penalties for violations against regulations on cross-border service provision

1. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on a foreign accounting service enterprise for one of the following acts:

a) Making payments, transferring money related to the provision of cross-border accounting services not in accordance with the law on foreign exchange management of Vietnam;

b) Failure to enter into an accounting service contract as prescribed by Vietnamese law when providing cross-border accounting services in Vietnam;

c) Failure to enter into a partnership contract when providing cross-border accounting services in Vietnam as prescribed.

2. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on organizations that commit one of the following acts:

a) Vietnam-based accounting firm that conducts a partnership with a foreign enterprise ineligible to provide cross-border accounting services as prescribed when providing cross-border accounting services in Vietnam. Male;

b) The foreign accounting firm that conducts a partnership with an enterprise in Vietnam is not eligible to provide accounting services as prescribed when providing cross-border accounting services in Vietnam.

3. A fine of between VND 30.000.000 and 40.000.000 shall be imposed on a foreign accounting firm that fails to enter into a partnership with a qualified enterprise providing accounting services in Vietnam when providing services. cross-border accounting in Vietnam.

4. Additional sanctioning forms:

Revoke the right to use the Certificate of eligibility to provide cross-border accounting services in Vietnam for a period from 06 months to 12 months from the effective date of the sanctioning decision for the translation business the foreign accounting department commits the violation specified in Clause 3 of this Article.

Article 31. Penalties for violations against obligations of foreign accounting firms when providing cross-border accounting services in Vietnam

1. A warning shall be imposed on the foreign accounting service enterprise that commits one of the following acts;

a) Notify the Ministry of Finance less than 15 days behind schedule when one of the prescribed conditions for provision of cross-border accounting services is not met in Vietnam;

b) Submit annual financial statements, written comments and reviews of the accounting service-practicing agency where the head office of the foreign accounting firm is headquartered on the implementation of the regulations. regulations of law on accounting service business and other legal regulations for the Ministry of Finance less than 15 days behind schedule;

c) Submit reports on the performance of contracts for provision of cross-border accounting services arising in Vietnam to the Ministry of Finance less than 15 days behind schedule.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on a foreign accounting service enterprise that commits one of the following acts:

a) Notify the Ministry of Finance 15 days or more later than the prescribed time limit when one of the prescribed conditions for provision of cross-border accounting services is not met in Vietnam;

b) Submit annual financial statements, written comments and reviews of the accounting service-practicing agency where the head office of the foreign accounting firm is headquartered on the implementation of the regulations. legal regulations on accounting services business and other legal regulations for the Ministry of Finance 15 days or more behind schedule;

c) Incomplete reports or submitting reports on the performance of the contract to provide cross-border accounting services in Vietnam to the Ministry of Finance 15 days or more behind schedule.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on a foreign accounting service enterprise that commits one of the following acts:

a) Failure to notify the Ministry of Finance when one of the prescribed conditions for provision of cross-border accounting services is not met;

b) Failure to submit annual financial statements, written comments and assessments of the accounting service-practicing agency where the head office of the foreign accounting firm is headquartered on the stipulate the law on accounting service business and other legal regulations for the Ministry of Finance according to the regulations;

c) Failure to report or report incorrectly on the performance of the contract to provide cross-border accounting services in Vietnam.

4. A fine of between VND 30.000.000 and 50.000.000 shall be imposed on a foreign accounting service enterprise that commits one of the following acts:

a) Performing prohibited acts or providing accounting services in cases where the provision of accounting services is not provided as prescribed;

b) Failure to comply with Vietnamese accounting standards and Vietnamese professional ethical standards when providing cross-border accounting services in Vietnam;

c) Failure to report or explain to Vietnamese authorities the issues related to the provision of cross-border accounting services in Vietnam.

5. Additional sanctioning forms:

Revoke the right to use the Certificate of eligibility to provide cross-border accounting services in Vietnam for a period from 03 months to 06 months from the effective date of the sanctioning decision for the translation business the foreign accounting department commits the violation specified in Clause 4 of this Article.

Article 32. Penalties for violations against obligations of an accounting firm when entering into a partnership with a foreign accounting firm to provide cross-border accounting services in Vietnam

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on an accounting service provider in Vietnam for committing one of the following acts:

a) Retain inadequate records of accounting services under the partnership contract with the foreign accounting firm when providing cross-border accounting services in Vietnam;

b) Failure to provide inadequately or on time as required by the competent authority in terms of documentation of the joint venture contract with the foreign accounting firm when providing accounting services via border in Vietnam;

c) Failure to explain inadequately or on time to competent authorities about the dossier of the partnership contract with the foreign accounting firm to provide cross-border accounting services. in Viet Nam.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on an accounting service provider in Vietnam for committing one of the following acts:

a) Failure to retain documents relating to the partnership contract with the foreign accounting firm to provide cross-border accounting services in Vietnam;

b) Failure to provide documents relating to a partnership contract with a foreign accounting firm to provide cross-border accounting services in Vietnam at the request of a competent authority;

c) Failure to explain to the competent authority the documents relating to the joint venture contract with the foreign accounting firm to provide cross-border accounting services in Vietnam;

d) Failure to report to the Ministry of Finance on the joint venture with the foreign accounting firm in the provision of cross-border accounting services as prescribed.

3. Additional sanctioning forms:

Revoke the right to use the Certificate of eligibility to provide accounting services for a period from 01 month to 03 months from the effective date of the sanctioning decision for the accounting firm in Vietnam. when committing one of the violations specified in Clause 2 of this Article.

Section 6. ACTS OF VIOLATION OF REGULATIONS ON NOTIFICATION AND REPORTING

Article 33. Penalties for violations of the obligation to notify and report of business households or accounting firms

1. Warnings shall be imposed for one of the following acts:

a) Notify the Ministry of Finance less than 15 days behind schedule when there is any change in any of the contents specified in Article 66 of the Law on Accounting;

b) Submit annual reports on the maintenance of conditions for practicing accounting services by the accountants practicing in their respective units to the Ministry of Finance less than 15 days behind schedule;

c) Notify the Ministry of Finance in writing less than 15 days behind the prescribed time limit when the accountant practicing accountant's certificate of accounting practice registration expires or is no longer valid. according to the law;

d) Submit annual reports on the maintenance of conditions for provision of accounting services less than 15 days behind schedule;

dd) Submit annual report on operation to the Ministry of Finance less than 15 days behind schedule;

e) To notify the Ministry of Finance in writing less than 15 days behind the prescribed time limit when operating again after the period of suspension of accounting service provision;

g) Notify the Ministry of Finance of the termination of the provision of accounting services 15 days behind schedule;

h) To make periodical and extraordinary reports at the request of the Ministry of Finance less than 15 days behind schedule.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Notify the Ministry of Finance 15 days or more behind schedule when there is any change in any of the contents specified in Article 66 of the Accounting Law;

b) Submit annual reports on the maintenance of conditions for practicing accounting services by the accountants practicing in their units to the Ministry of Finance 15 days or more behind schedule;

c) Notify the Ministry of Finance in writing 15 days or more later than the prescribed time limit when the accountant practicing accountant's certificate of accounting service registration expires or ceases to exist. value as prescribed;

d) Submit annual reports on the maintenance of conditions for provision of accounting services to the Ministry of Finance 15 days or more behind schedule;

dd) Submit annual report on operation to the Ministry of Finance 15 days or more behind schedule;

e) To notify in writing to the Ministry of Finance 15 days or more behind schedule when it resumes operation after the period of suspension of accounting service provision;

g) Notify the Ministry of Finance of the termination of the provision of accounting services 15 days or more behind schedule;

h) To make periodical and irregular reports at the request of the Ministry of Finance 15 days or more behind schedule.

3. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Failure to notify the Ministry of Finance of any change in any of the contents specified in Article 66 of the Law on Accounting;

b) Failure to submit general reports on the maintenance of annual conditions for practicing accountants to practicing accountants in their units to the Ministry of Finance as prescribed;

c) Failure to notify the Ministry of Finance in writing when the accountants 'practicing accountants' registration certificates are no longer valid or valid as prescribed;

d) Failure to submit annual reports on the maintenance of conditions for provision of accounting services to the Ministry of Finance;

dd) Failure to submit the annual report on operation to the Ministry of Finance as prescribed;

e) Failure to notify the Ministry of Finance in writing as prescribed when resuming operation after the period of suspension of accounting service provision;

g) Failure to notify the termination of the provision of accounting services to the Ministry of Finance;

h) Failure to make periodic and irregular reports at the request of the Ministry of Finance as prescribed.

Article 34. Penalties for violations against regulations on reporting and reporting obligations of practicing accountants

1. A warning shall be imposed on practicing accountants to notify or report to the Ministry of Finance less than 15 days behind the prescribed time limit when:

a) No longer working at the accounting firm specified in the Certificate of Accounting Practitioner Registration;

b) The full-time labor contract at the accounting service provider expires or is terminated or there are changes leading to no longer guarantee that the full-time labor contract as prescribed determination;

c) The work permit in Vietnam of the foreign practicing accountant is invalid or invalid;

d) Participate as chief accountant or in charge of accountant, accountant, internal audit or other positions at a unit or organization other than the accounting service business unit for which they are registered to practice. ;

dd) The accounting service business unit where the practicing accountant has registered to practice is divided, separated, consolidated, merged, shut down, dissolved or bankrupt;

e) There is a request from the Ministry of Finance for the periodic or ad hoc provision of information relating to the practicing accountant's practice of accounting services.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on practicing accountants to notify the Ministry of Finance 15 days or more behind schedule when:

a) No longer working at the accounting firm specified in the Certificate of Accounting Practitioner Registration;

c) The work permit in Vietnam of the foreign practicing accountant is invalid or invalid;

dd) The accounting service business unit where the practicing accountant has registered to practice is divided, separated, consolidated, merged, shut down, dissolved or bankrupt;

e) There is a request from the Ministry of Finance for the periodic or ad hoc provision of information relating to the practicing accountant's practice of accounting services.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on practicing accountants who fail to notify or report according to regulations to the Finance Ministry when:

a) No longer working at the accounting firm specified in the Certificate of Accounting Practitioner Registration;

c) The work permit in Vietnam of the foreign practicing accountant is invalid or invalid;

dd) The accounting service business unit where the practicing accountant has registered to practice is divided, separated, consolidated, merged, shut down, dissolved or bankrupt;

e) There is a request from the Ministry of Finance for the periodic or ad hoc provision of information relating to the practicing accountant's practice of accounting services.

Section 7. ACTS OF VIOLATION OF PROVISIONS ON INSPECTION OF ACCOUNTING SERVICES ACTIVITIES

Article 35. Penalties for violations against regulations on inspection of accounting service activities

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Providing insufficient information and documents at the request of a competent agency or organization during the inspection process of accounting service operations;

b) Providing improper information or documents to a competent agency or organization during the inspection of accounting service activities.

2. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Failure to provide information and documents at the request of a competent agency or organization during the inspection of accounting service activities;

b) Failure to explain or cooperate with a competent agency or organization in the inspection of accounting service activities.

3. Additional sanctioning forms:

Chapter III

FORM OF PENALTY AND PENALTY LEVEL IN INDEPENDENT AUDITING AREA

Section 1. ACTS OF VIOLATION OF REGULATIONS ON CERTIFICATION EXAMINATION AND UPDATE KNOWLEDGE FOR AUDITORS

Article 36. Penalties for violations against regulations on the Auditor Certificate Examination documents

1. A warning shall be imposed on individuals who perform acts of improperly declaring information in the dossiers for contest to obtain auditor's certificates.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of incorrectly certifying the documents in the dossiers in order to be eligible to take the exam for auditor's certificate.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of correcting, forging, perjury about diplomas, certificates and other documents in the dossier in order to be eligible to take the examination for the examination certificate. accountant.

4. Additional sanctioning forms:

Confiscate material evidence of violation for acts specified in clause 3 of this Article.

Article 37. Penalties for violations of regulations on updating knowledge for auditors

1. A warning shall be imposed on the organizations approved by the Ministry of Finance to organize classes to update knowledge for practicing auditors and audit practice registrants when performing one of the following acts:

a) Submit report on organization result of updating class to update knowledge of auditors to the Ministry of Finance after each class is less than 15 days behind schedule;

b) Failure to monitor and take attendance attendance of students participating in updated courses;

c) Failure to collect students 'opinions on the class quality assessment sheet that updates auditors' knowledge;

d) Failure to issue Certificates to students who have participated in updating knowledge and Certificates to auditors participating in teaching update classes after each class;

dd) Organizing classes to update knowledge with the number of students / class in contravention of regulations;

e) Notify the Ministry of Finance of the class content, program, time and location, details of lecturers, number of practicing auditors registered to attend the class before organizing the class or notify the Ministry of Finance of any change to the above contents less than 15 days behind schedule;

g) Submit annual reports on results of organizing updating classes to the Ministry of Finance less than 15 days behind schedule.

2. A fine of between VND 5.000.000 and 10.000.000 for the organization approved by the Ministry of Finance to organize classes to update knowledge for practicing auditors and audit practice registrants. one of the following acts:

a) Organizing the update of knowledge for auditors in contravention of the contents or program registered with the Ministry of Finance;

b) Submit report on organization result of class to update auditor's knowledge to the Ministry of Finance after each class is 15 days or more behind schedule;

c) Notify the Ministry of Finance of the class content, program, time and location, details of lecturers and the number of practicing auditors registered to attend classes before the class is delayed. 15 days or more compared to the prescribed time limit; or notify the Ministry of Finance of any change of the above contents 15 days or more later than the prescribed time limit;

d) Submit the report on summary of organization results to update knowledge of auditors 15 days or more behind schedule;

dd) Incorrectly declaring, forging, or falsifying documents in order to obtain approval to update knowledge for auditors;

e) Failure to retain sufficient documents on organization to update auditor's knowledge as prescribed.

3. A fine of between VND 10.000.000 and 20.000.000 for the organization approved by the Ministry of Finance to organize classes to update knowledge for practicing auditors and audit practice registrants. one of the following acts:

a) Failure to submit reports on the result of class organization updating auditors knowledge to the Ministry of Finance after each class;

b) Failure to notify the Ministry of Finance of the class content, program, time, location, details of lecturers, number of practicing auditors registered to attend the class before organizing the class. ; or fail to notify the Ministry of Finance of any change to the above contents according to regulations;

c) Failure to submit report on summary of organization results to update auditor's knowledge;

d) Update knowledge to calculate the time to update knowledge for practicing auditors and audit practice registrants without approval of the Ministry of Finance;

dd) Incorrectly reporting the number of participants in updating knowledge or incorrectly reporting the number of updated hours of auditors;

e) No class but the report has class;

g) Issuing the certificate of participation in updating knowledge to the students who actually do not participate in the update.

4. Additional sanctioning forms:

Suspend the organization of updating knowledge for auditors for a period from 01 month to 03 months from the effective date of the sanctioning decision for the organization that commits one of the violations specified in at Points d, dd, e, g, Clause 3 of this Article from the second time on (if the time of detecting violations of such organization is being approved by the Ministry of Finance to update knowledge for auditors).

5. Remedies:

Force to submit illegal benefits gained from conducting acts of violation specified in point d, clause 3 of this Article.

Section 2. ACTS OF VIOLATION OF REGULATIONS ON REGISTRATION OF AUDITING PRACTICE

Article 38. Penalties for violations against regulations on management and use of Auditor's Certificates

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on individuals that commit one of the following acts:

a) Erasing, correcting, altering the contents of the Auditor's Certificate;

b) Leasing to organizations, individuals other than the units they are working to hire, borrow, use their auditor's certificate to register for auditing practice or register to practice audit at the unit where they actually work not working under full-time employment contracts.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on the enterprise that hires, borrows, or uses an auditor's certificate of a person who does not work or works under an unsecured labor contract. do the whole time in his unit to register to practice audit.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of forging Auditor Certificates.

4. Additional sanctioning forms:

a) Confiscate material evidence of the violation, for acts specified at Point a, Clause 1 and Clause 3 of this Article;

b) Deprivation of the right to use the Certificate of audit practice registration for a period from 03 months to 06 months from the effective date of the sanctioning decision for practicing auditors performing the acts specified at Point b Clause 1 of this Article.

5. Remedies:

Force to submit illegal benefits gained from conducting acts of violation specified in point b, clause 1 of this Article.

Article 39. Penalties for violations of regulations on the audit practice registration dossiers of auditors

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of incorrectly certifying information, documents in the dossier in order to satisfy the conditions for being granted an audit practice registration certificate.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for acts of incorrectly declaring in the dossier in order to fully satisfy the conditions for being granted an audit practice registration certificate.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of forging or perjuring the documents in the dossier in order to fully satisfy the conditions for being granted an audit practice registration certificate.

4. Additional sanctioning forms:

Confiscate material evidence of violation for acts specified in clause 3 of this Article.

Article 40. Penalties for violations against regulations on management and use of audit practice registration certificates

1. A warning shall be imposed for the act of returning the audit practice registration certificate to the Ministry of Finance less than 15 days behind the prescribed time limit.

2. A fine of VND 5.000.000 to VND 10.000.000 for one of the following acts:

a) Return the audit practice registration certificate to the Ministry of Finance 15 days or more later than the prescribed time limit;

b) Using the Certificate of audit practice registration which is expired or no longer valid to perform professional accounting activities, independent auditing.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for the act of failing to return the audit practice registration certificate to the Ministry of Finance according to regulations.

4. Remedies:

Force to submit illegal benefits gained from committing acts specified in point b, clause 2 of this Article.

Section 3. ACTS OF VIOLATION OF REGULATIONS ON CONDITIONS FOR BUSINESS OF AUDITING SERVICES AND AUDITING SERVICES

Article 41. Penalties for violations against regulations on dossier of application for Certificate of eligibility for business of audit services

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of confirming factual documents in the dossier in order to satisfy the conditions for being granted the Certificate of eligibility for business in audit services.

3. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of cheating, forging dossiers in order to qualify for issuance of certificates of eligibility to provide audit services.

4. Additional sanctioning forms:

Confiscate material evidence of violation for acts specified in clause 3 of this Article.

Article 42. Penalties for violations against regulations on management and use of Certificate of eligibility for business of audit services

1. A warning shall be imposed on an enterprise that commits one of the following acts:

a) Return the Certificate of eligibility for business of audit services to the Ministry of Finance less than 15 days behind the prescribed time limit when revoked;

b) Procedures for re-issuance of the Certificate of eligibility for business of audit services are less than 15 days behind schedule.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on an enterprise that commits one of the following acts:

a) Return the Certificate of eligibility for business of audit services to the Ministry of Finance 15 days or more behind schedule when revoked;

b) Failure to carry out procedures for adjusting the Certificate of eligibility for business of audit services, when there is a change, it must be adjusted as prescribed;

c) Failure to carry out procedures or carry out procedures for re-issuance of the Certificate of eligibility for business of audit services which is 15 days or more behind schedule than the prescribed time limit;

d) Modifying, erasing, altering the content of the Certificate of eligibility to provide audit services;

dd) Lease or lend the Certificate of eligibility to provide audit services.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on the enterprise that commits the act of failing to return the Certificate of eligibility to provide audit services to the Ministry of Finance when it is revoked.

4. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of forging the Certificate of eligibility to provide audit services.

5. Additional sanctioning forms:

Confiscate material evidence of violation for acts specified at Point d, Clause 2 and Clause 4 of this Article.

6. Remedies:

Force to submit illegal benefits gained from conducting acts of violation specified in point dd, clause 2 of this Article.

Article 43. Penalties for violations of regulations on audit service business of auditing firms

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on enterprises which do not fully satisfy conditions to provide audit services as prescribed but use the phrase "audit" in the name.

2. A fine of from 10.000.000 VND to 20.000.000 VND shall be imposed on the enterprise which is not granted the Certificate of eligibility to provide audit services but fails to carry out the procedures for deletion of the audit service profession as prescribed. .

3. A fine of between VND 40.000.000 and 50.000.000 shall be imposed on an enterprise that commits one of the following acts:

a) Providing audit services without obtaining the Certificate of eligibility to provide audit services;

b) Continuing to provide services as prescribed in Clause 1 Article 40 of the Law on independent audit after suspending or suspending the business of audit services;

c) Continuing to provide services as prescribed in Clause 1 Article 40 of the Law on independent audit when the audit service business is terminated or the Certificate of eligibility for audit service business has been revoked.

4. Additional sanctioning forms:

Deprivation of the right to use the Certificate of eligibility for business of audit services for a period from 03 months to 06 months from the effective date of the sanctioning decision for enterprises committing acts specified in Clause 3 This (if the time of detecting violations of that enterprise is the auditing firm).

5. Remedies:

Force to submit illegal benefits gained from conducting acts of violations specified in clause 3 of this Article.

Section 4. ACTS OF VIOLATION OF REGULATIONS ON AUDITING ACTIVITIES

Article 44. Penalties for breaches of regulations on purchasing professional liability insurance for practicing auditors or setting up the professional risk reserve fund

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditing enterprises that purchase professional liability insurance for practicing auditors or set up the professional risk reserve fund in contravention of regulations. of the Ministry of Finance.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing enterprises that fail to purchase professional liability insurance for practicing auditors or set up the professional risk reserve fund.

Article 45. Penalties for violations of regulations on accepting the performance of audits

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Performing audit for customers when the independence, insufficient professional capacity, insufficient conditions as prescribed by law are not ensured;

b) Audit for the client when the customer or the audited unit has requirements contrary to professional ethics, professional requirements or against the provisions of law.

2. Remedies:

Force to submit illegal benefits gained from conducting acts of violations specified in clause 1 of this Article.

Article 46. Penalties for violations of provisions on audit contracts

1. A warning shall be imposed on auditing enterprises entering into audit contracts with customers, the audited unit with insufficient contents as prescribed.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditing enterprises entering into audit contracts with customers or audited units after performing the audit.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing enterprises that fail to enter into audit contracts with customers or audited units when performing the audit.

Article 47. Penalties for violations of confidentiality regulations

1. A fine of between VND 5.000.000 and 10.000.000 for acts of disclosing information related to audit dossiers, audited customers or units, except for cases of clients or audited units. approved math or as prescribed by law.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms that fail to build and operate the internal control system in order to ensure the performance of the obligation of confidentiality.

3. A fine of between VND 30.000.000 and 40.000.000 for acts of using information related to audit dossiers, customers or audited units to infringe upon the interests of the State or interests. public, legitimate rights and interests of agencies, organizations and individuals.

4. Additional sanctioning forms:

a) Deprivation of the right to use the Certificate of registration of auditing practice for a period from 03 months to 06 months from the date on which the sanctioning decision takes effect for practicing auditors performing acts specified in Clause 3 of this Article;

b) Deprivation of the right to use the Certificate of eligibility to provide audit services for a period from 06 months to 12 months from the effective date of the sanctioning decision for auditing firms performing the act of mentioned in Clause 3 of this Article.

5. Remedies:

Force to submit illegal benefits gained from conducting acts of violations specified in clause 1 and clause 3 of this Article.

Article 48. Penalties for violations of regulations on audit reports

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditors who commit one of the following acts:

a) Signing the audit report in contravention of authority as prescribed;

b) Signing the audit report before the date of signing the audited financial statement.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditors who commit one of the following acts:

a) Signing the audit report when not being a practicing auditor;

b) Signing audit reports for more than three consecutive years for an audited entity.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Assigning practicing auditors to sign audit reports in contravention of competence as prescribed;

b) Issuing the audit report on which the date of signing the audit report is before the date of signing the financial statement;

c) Making audit report without full signature of practicing auditors as prescribed;

d) To give an incomplete or on-time explanation for the exception in the audit report at the request of the competent authority or the representative of the owner of the audited unit.

4. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of failing to explain the exception contents of the audit report at the request of the competent agency or the representative of the unit owner. be audited.

5. A fine of between VND 20.000.000 and 40.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Assigning someone to sign the audit report when he is not a practicing auditor;

b) Assigning practicing auditors to sign audit reports for more than 3 consecutive years for an audited entity.

6. Additional sanctioning forms:

a) Deprivation of the right to use the Certificate of practice registration for auditing for a period from 03 months to 06 months from the effective date of the sanctioning decision against auditors committing one of the prescribed acts. at Point a, Clause 2 of this Article (if at the time of detecting the violation is a practicing auditor);

Article 49. Penalties for violations against regulations on independence

1. A fine of VND 10.000.000 to VND 20.000.000 for one of the following acts:

a) Information, false introduction about qualifications, experience and ability to provide services of practicing auditors and auditing firms, branches of foreign auditing firms in Vietnam;

b) Buying, receiving, donating, gifting or holding stocks or capital contributions of the audited entity, irrespective of the quantity;

c) Buying or selling bonds or other assets of an audited entity that affects the independence in accordance with the professional ethics standards of accounting and auditing;

d) Receiving or demanding any sum of money or benefits from the audited entity other than the service charges and fees as agreed upon in the signed contract;

dd) Harassing or deceiving customers and audited entities;

e) Interfering in the business operations of the customer, the audited unit during the audit;

g) To collect debts for the audited units.

2. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Colluding or linking with the audited entity to falsify accounting documents, financial statements, audit records and report falsifying audit results;

b) Forging, falsifying audit records;

c) Performing audit when falling into one of the cases not performing audit as prescribed by law;

d) Practicing auditing as individuals;

dd) Working for two or more auditing firms, branches of foreign auditing firms in Vietnam at the same time;

e) Contributing capital to two or more auditing firms.

3. Additional sanction

Deprivation of the right to use the Certificate of Audit Practicing Registration for a period of from 03 months to 06 months from the effective date of the sanctioning decision for practicing auditors committing acts of violation specified at Point d , dd, e Clause 2 of this Article;

4. Remedies:

Force to submit illegal benefits gained from committing acts of violation specified in points a, b, c clause 2 of this Article.

Article 50. Penalties for violations against regulations on making audit records

1. A fine of between VND 20.000.000 and 30.000.000 shall be imposed for acts of failing to compile audit dossiers for audits.

2. Additional sanctioning forms:

Article 51. Penalties for violations against regulations on preservation and archival of audit records

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Preserving, archiving inadequate, safe audit records, to damage or lose audit records during the use process and during the archival period;

b) To archive audit dossiers for more than 12 months from the date of issue of the audit report of the audit;

c) Failure to design and implement policies and procedures to maintain the confidentiality, safety, integrity, accessibility and resilience of audit documentation as required by audit standards;

d) Failure to design, implement policies and procedures on archiving of audit records for a minimum period of 10 years from the date of issue of the audit report of the audit in accordance with the provisions of audit standards.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing enterprises that fail to archive paper auditing dossiers or electronic data.

Article 52. Penalties for violations against regulations on destruction of audit dossiers

1. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Deciding to destroy the audit dossiers in contravention of competence;

b) Destroying audit dossiers without establishing a destruction council, failing to comply with the destruction methods and procedures, failing to make a list of destruction audit dossiers, without making a record of destruction of the exhaustive audit dossiers storage period as specified.

2. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on auditing enterprises that conduct the cancellation of the audit dossiers before the prescribed archival duration has expired or intentionally damage the audit dossiers.

Section 5. ACTS OF VIOLATION OF REGULATIONS ON AUDITED UNITS

Article 53. Penalties for violations against regulations on selection of auditing firms, auditors practicing auditing

1. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on units that hire auditing firms in cases where auditing enterprises are not allowed to conduct audits according to law provisions.

2. A fine of between VND 30.000.000 and 40.000.000 shall be imposed on a unit that hires an audit enterprise that is ineligible to provide audit services according to the provisions of law.

3. A fine of between VND 40.000.000 and 50.000.000 for the audited unit that fails to conduct the compulsory audit of the financial statements, the settlement report of the completed project or the consolidated financial statement. , general financial statements and other auditing jobs in accordance with the law on independent audit and other relevant laws.

Article 54. Penalties for violations against regulations on entering into audit contracts for annual financial statements

1. A warning shall be imposed on enterprises, organizations that are obliged to audit annual financial statements, and sign audit contracts with incomplete contents according to regulations.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on enterprises or organizations that are required to audit their annual financial statements, which are slower to enter into audit contracts for financial statements. with the specified deadline.

3. A fine of from 10.000.000 VND to 20.000.000 VND shall be imposed on the enterprise or organization that is required to audit the annual financial statements that enter into the audit contract after performing the audit.

4. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on enterprises, organizations that are subject to the compulsory auditing of annual financial statements that fail to enter into contracts on audit of financial statements. current audit.

Article 55. Penalties for violations of regulations related to the audit

1. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on the audited units that fail to give explanations or give inadequate or timely explanations on the exception contents in the audit reports as required. of the competent authority.

2. A fine of VND 20.000.000 to VND 30.000.000 for one of the following acts:

a) Refusing to supply necessary information and documents for the audit at the request of practicing auditors or auditing firms;

b) Bribing, bribing, colluding with members participating in the audit and auditing firms to falsify the accounting documents, financial statements, audit records and audit reports;

c) Threatening, retaliation, forcing members to participate in the audit in order to falsify audit results;

d) Concealing acts of violation of the laws on finance and accounting;

dd) Obstructing work and acts to limit the scope of the audit.

3. Remedies:

Forcible correction of untruthful or confusing information, for acts of violation specified at Points b and c, Clause 2 of this Article.

Section 6. ACTS OF VIOLATION REGULATIONS ON AUDITING THE FINANCIAL STATEMENTS OF THE UNITS WITH PUBLIC INTEREST

Article 56. Penalties for violations of provisions on the obligation to notify and report of approved auditing firms

1. A warning shall be imposed on the approved auditing enterprise to report to the competent agency for approval when the name, office, field of practice, the list of practicing auditors and the changes change resulting in ineligibility for an audit approval less than 15 days behind the prescribed deadline.

2. A fine of between VND 5.000.000 and 10.000.000 for an approved auditing enterprise to report to a competent agency for approval upon change of its name, office, practice field or checklist Practicing accountants and changes leading to ineligibility for audit approval delay of 15 days or more than the prescribed deadline.

3. A fine of between VND 10.000.000 and 20.000.000 for an approved auditing enterprise that fails to report to the competent agency for approval upon change of its name, office, practice field or list. Practicing auditors and changes lead to ineligibility for audit approval.

Article 57. Penalties for breaches of regulations on the performance of audit or review services for units with the public interest

1. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on practicing auditors performing audit, for period of audit report or reporting on results of the review work to units with public interests when not yet approval by the Ministry of Finance or upon suspension or cancellation of approval.

2. A fine of VND 30.000.000 to VND 40.000.000 for one of the following acts:

a) Auditing firms perform audits for units with the public interest in one of the cases not audited for units with the public interest;

b) Units with public interest shall select auditing firms to provide audit services or review services when the auditing firms have not been approved by the Ministry of Finance;

c) The entity with the public interest shall select the firm to provide audit or review services or continue to perform the audit or review contract signed with the firm in the case of the firm. The audit is suspended or disqualified for an audit approval.

3. A fine of between VND 40.000.000 and 50.000.000 shall be imposed on auditing firms that provide auditing services or review services to units with the public interest without obtaining approval from the Ministry of Finance or when suspension or disqualification for audit approval.

4. Additional sanctioning forms:

b) Deprivation of the right to use the Certificate of eligibility for business of audit services for a period from 03 months to 06 months from the effective date of the sanctioning decision for enterprises that commit acts specified in Clause 3 of this Article from the second time on.

5. Remedies:

Force to submit illegal benefits gained from conducting acts of violations specified in clause 1, point a clause 2 and clause 3 of this Article.

Article 58. Penalties for violations of regulations on disclosure of transparent reporting information

1. A warning shall be imposed on auditing firms that commit one of the following acts:

a) The transparent report when disclosed without the signature of the legal representative of the auditing firm or an authorized person;

b) Publish information in a transparent report or update the changed information less than 15 days behind schedule.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditing firms that commit acts of violation in announcing and fully updating information in the transparency report on the website within 15 days. or more than the specified time limit.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Failure to set up a website as prescribed;

b) Failure to publish and fully update information in the transparency report on the website;

c) Disclosure of false information in the transparency report.

4. Remedies:

Forcible correction of untruthful information, for acts of violation specified at Point c, Clause 3 of this Article.

Article 59. Penalties for violations on registration dossiers for participation in auditing for public interest units

1. A warning shall be imposed on auditing firms that commit one of the following acts:

a) The transparent report when disclosed without the signature of the legal representative of the auditing firm or an authorized person;

b) Publish information in a transparent report or update the changed information less than 15 days behind schedule.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Failure to set up a website as prescribed;

b) Failure to publish and fully update information in the transparency report on the website;

c) Disclosure of false information in the transparency report.

4. Remedies:

Forcible correction of untruthful information, for acts of violation specified at Point c, Clause 3 of this Article.

Article 60. Penalties for violations of regulations related to the responsibilities of the units with the public interest

A fine ranging from VND 10.000.000 to VND 20.000.000 shall be imposed on an entity with the public interest that commits any of the following violations:

1. Not building and operating the internal control system.

2. Not organizing internal audit according to the provisions of law.

3. Selection of another approved auditing firm to give an opinion on the financial statement when such financial statement has been audited by an approved auditing firm, unless it is permitted under regulations. under the law.

4. Failing to report to the agency competent to approve the auditing firms to perform the audit for their units the reasons for the change of approved auditing firms compared to the preceding year and the reason for the change of auditing firms Approved group is performing audit (if any).

5. Failing to notify the agencies competent to approve the auditing firms to audit for their units when detecting practicing auditors and approved auditing firms to violate the law on independent audit .

6. To supply untrue information and data related to the audited financial statements at the request of the competent authority.

7. Failure to explain or provide information related to the audited financial statements at the request of the competent authority.

Article 61. Penalties for violations against regulations on independence

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed for acts of auditing a unit with the public interest now holding the position of manager, executive, member of the Control Board or chief accountant of the that has a public interest that is less than twelve months from the date the audit ends and the date of holding the positions.

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed for acts of conducting audits for units with the public interest for more than 4 consecutive financial years.

3. A fine of VND 20.000.000 to VND 40.000.000 for one of the following acts:

a) The unit with the public interest accepts the practicing auditor to audit financial statements for more than 4 consecutive fiscal years;

b) Auditing firms assign practicing auditors to audit financial statements for an entity with the public interest for more than 4 consecutive fiscal years.

4. Additional sanctioning forms:

b) Deprivation of the right to use the Certificate of eligibility for business of audit services for a period from 03 months to 06 months for the enterprise committing acts specified in point b, clause 3 of this Article from the second time on. .

Section 7. ACTS OF VIOLATION OF REGULATIONS ON PROVISION AND USE OF CROSS-BORDER AUDIT SERVICES

Article 62. Penalties for violations of regulations on conditions to provide auditing services across border

1. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on the foreign auditing business enterprises that perform the act of erasing, correcting dossiers in order to qualify for the grant of certificates of eligibility for translation business. cross-border audits in Vietnam.

2. A fine of between VND 40.000.000 and 50.000.000 shall be imposed on the foreign audit business enterprises that commit one of the following acts:

a) Forging the application for registration of providing auditing service across border;

b) Providing cross-border audit services in Vietnam without obtaining the Certificate of eligibility to provide cross-border audit services in Vietnam;

c) Continuing to provide audit services across border in Vietnam upon suspending, terminating the business of audit services, suspending the business of audit services or having the Certificate of eligibility revoked providing cross-border auditing services in Vietnam.

3. Additional sanctioning forms:

Deprivation of the right to use the Certificate of eligibility for business of cross-border auditing services in Vietnam (if granted the Certificate) for a period from 03 months to 06 months from the effective date of the sanctioning decision enforce against foreign auditing firms that commit one of the acts specified at points b, c, clause 2 of this Article.

4. Remedies:

Force to pay back illegal benefits gained from committing acts of violation specified in points b and c, clause 2 of this Article.

Article 63. Penalties for violations against regulations on cross-border service provision

1. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on foreign auditing firms that commit one of the following acts:

a) Payment and money transfer relating to provision of cross-border audit services not in accordance with the law on foreign exchange management of Vietnam;

b) Failing to enter into an audit contract as prescribed by Vietnamese law when providing auditing service across border;

c) Failure to establish a partnership contract when providing auditing service across border as prescribed.

2. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on organizations that commit one of the following acts:

a) The auditing firm in Vietnam performs a partnership with a foreign enterprise that is ineligible to provide cross-border audit services as prescribed when providing cross-border audit services in Vietnam;

b) The foreign auditing firm performing the partnership with an enterprise in Vietnam is not eligible to provide audit services as prescribed when providing auditing service across border in Vietnam.

3. A fine of from 30.000.000 VND to 40.000.000 VND shall be imposed on the foreign auditing firm that fails to enter into a partnership with a qualified enterprise to provide audit services when providing cross-border auditing services at Vietnam.

4. Additional sanctioning forms:

Deprivation of the right to use the Certificate of eligibility for business of cross-border auditing services in Vietnam for a period of 06 months to 12 months from the effective date of the sanctioning decision for water audit firms. in addition to committing any of the violations specified in Clause 3 of this Article.

Article 64. Penalties for violations of obligations of enterprises providing auditing services across border

1. A warning shall be imposed on foreign auditing firms that commit one of the following acts:

a) Notify the Ministry of Finance less than 15 days behind the prescribed time limit when one of the conditions as prescribed for the provision of cross-border audit services is not met;

b) Submitting the annual audited financial statements together with the audit report of the independent auditing firm, written comment of the management agency of the audit practice where the enterprise is headquartered about the situation. implementation of legal regulations on auditing activities and other legal regulations for the Ministry of Finance less than 15 days behind schedule;

c) Submit the report on the performance of the contract to provide auditing service across border arising in Vietnam to the Ministry of Finance less than 15 days behind the prescribed time limit.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on foreign auditing firms that commit one of the following acts:

a) Notify the Ministry of Finance 15 days or more later than the prescribed time limit when one of the conditions as prescribed for the provision of cross-border audit services is not met;

c) Incomplete report or submitting report on the performance of the contract to provide auditing service across border arising in Vietnam to the Ministry of Finance 15 days or more behind schedule .

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on foreign auditing firms that commit one of the following acts:

a) Failing to notify the Ministry of Finance when it fails to satisfy one of the prescribed conditions for the provision of cross-border auditing services;

b) Failure to submit the audited annual financial statements together with the audit report of the independent auditing firm, the written comment of the audit practice management agency where the enterprise is headquartered on the implementation of legal regulations on auditing activities and other legal regulations for the Ministry of Finance as prescribed;

c) Failure to report, report incorrectly on the performance of the contract to provide auditing service across border arising in Vietnam.

4. A fine of between VND 30.000.000 and 50.000.000 shall be imposed on foreign auditing firms that commit one of the following acts:

a) Performing prohibited acts or providing audit services when falling into the cases that are not entitled to audit under the provisions of the Law on independent audit of Vietnam;

b) Failure to comply with Vietnamese auditing standards, professional ethical standards of accounting and auditing of Vietnam when providing auditing services across border in Vietnam;

c) Failure to report, explain to the Vietnamese authorities the contents related to the provision of cross-border auditing services in Vietnam.

5. Additional sanctioning forms:

Deprivation of the right to use the Certificate of eligibility for business of cross-border auditing services in Vietnam for a period of from 03 months to 06 months from the effective date of the sanctioning decision for water audit firms in addition to committing the violations specified at Point a, Clause 4 of this Article.

Article 65. Penalties for violations of regulations on partnership with foreign auditing firms to provide auditing services across border in Vietnam

1. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditing firms in Vietnam in partnership with foreign auditing firms that commit one of the following acts:

a) Storing incomplete records of the audit made the partnership with the foreign audit service business to provide auditing services across border in Vietnam;

b) To provide inadequate, improperly scheduled audit records to the competent authority of the audit records of the audit that made the partnership upon request;

c) Failure to explain inadequately or on time to competent authorities on audit reports, audit records and other issues arising from the audit in partnership with foreign auditing firms .

2. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms in Vietnam in partnership with foreign auditing firms that commit one of the following acts:

a) Failing to archive the records of the audit that made the partnership with the foreign audit firm to provide auditing services across border in Vietnam;

b) Failure to provide the competent authority with the audit documentation that has made the partnership with the foreign audit firm to provide cross-border auditing services in Vietnam upon request;

c) Failure to explain to the authorities about audit reports, audit records and other issues arising from the joint audit with the foreign audit firm to provide auditing services across the border. gender in Vietnam;

d) Failure to report to the Ministry of Finance on the joint venture with the foreign audit firm in the provision of cross-border auditing services as prescribed.

3. Additional sanctioning forms:

Deprivation of the right to use the Certificate of eligibility for business of cross-border auditing services in Vietnam for a period of from 01 month to 03 months from the effective date of the sanctioning decision for water audit firms in addition to performing one of the acts specified in Clause 2 of this Article.

Section 8. ACTS OF VIOLATION OF REGULATIONS ON NOTIFICATION AND REPORTING

Article 66. Penalties for violations of regulations on the obligation to notify and report of auditing firms

1. A warning shall be imposed on auditing firms that commit one of the following acts:

a) Notify the Ministry of Finance less than 15 days behind schedule, when there is any change, it must be notified under the Law on Independent Audit;

b) Submitting reports on the maintenance of annual conditions for auditing practice by auditors who register to practice at their units to the Ministry of Finance less than 15 days behind schedule;

c) To notify in writing to the Ministry of Finance less than 15 days behind the prescribed time limit when the audit practice registration certificate expires or is no longer valid for the cases subject to notification as prescribed. under the law;

d) Report to the Ministry of Finance less than 15 days behind the prescribed time limit when the Certificate of eligibility for business of audit service is lost or damaged;

dd) Submit to the Ministry of Finance the annual report on the maintenance of conditions for business of audit services or at request less than 15 days behind schedule;

e) Submit reports on the annual operation of the year to the Ministry of Finance and the financial statements of the preceding year less than 15 days behind schedule;

g) To notify in writing to the Ministry of Finance less than 15 days behind the prescribed time limit when operating again after the period of suspension of audit business;

h) Submit application for termination of business of audit services to the Ministry of Finance less than 15 days behind schedule;

i) To make periodical and extraordinary reports at the request of the Ministry of Finance less than 15 days behind schedule.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Notify the Ministry of Finance 15 days or more behind schedule when there is any change in contents as prescribed in the Law on independent audit;

b) Submitting reports on the annual maintenance of audit practice conditions of auditors registered to practice in their units together with the annual report on maintenance of audit practice conditions of each auditor. staff to the Ministry of Finance 15 days or more behind schedule;

c) To notify in writing to the Ministry of Finance 15 days or more later than the prescribed time limit when the audit practice registration certificate expires or is no longer valid for cases which must be notified according to provisions of law;

d) To report to the Ministry of Finance 15 days or more later than the prescribed time limit when the Certificate of eligibility for business of audit services is lost or damaged;

dd) Submit the report on the situation of maintaining the conditions for business of audit services to the Ministry of Finance annually or at the request of 15 days or more behind schedule;

e) Submit reports on the annual performance of the year and the financial statements of the preceding year to the Ministry of Finance 15 days or more behind schedule;

g) To notify in writing to the Ministry of Finance 15 days or more later than the prescribed time limit when operating again after the period of suspension of audit business;

h) Submit application for termination of business of audit services to the Ministry of Finance 15 days or more behind schedule;

i) Make periodic and irregular reports at the request of the Ministry of Finance 15 days or more behind schedule.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Failure to notify the Ministry of Finance when there is any change, it must be notified under the Law on Independent Audit;

b) Failure to submit reports on the annual condition of maintaining the conditions for auditing practice of the auditors registered to practice in their units together with the annual report on maintenance of audit practice conditions of each auditor. accountants for the Ministry of Finance according to regulations;

c) Failure to notify the Ministry of Finance when the Audit Practicing Registration Certificate expires or is no longer valid for the cases subject to notification as prescribed by law;

d) Failure to report to the Ministry of Finance when the Certificate of eligibility to provide audit services is lost or damaged;

dd) Failure to report on the maintenance of conditions for business of audit services on an annual basis or upon request to the Ministry of Finance;

e) Failure to submit reports on the annual operation and the financial statements of the preceding year to the Ministry of Finance as prescribed;

g) Failure to notify in writing to the Ministry of Finance when operating again after the period of suspension of audit business;

h) Failure to submit dossier to request the termination of business of audit services to the Ministry of Finance as prescribed;

i) Failing to notify in writing together with copies of documents to the Ministry of Finance on the establishment or termination of operation of the establishments of the overseas auditing firms;

k) Failure to make periodic and irregular reports at the request of the Ministry of Finance as prescribed.

Article 67. Penalties for violations against provisions on the obligation to notify and report of practicing auditors

1. A warning shall be imposed on practicing auditors to notify and report to the Ministry of Finance less than 15 days behind the prescribed time limit when:

a) No longer working and terminating the full-time labor contract at the auditing firm, branch of foreign auditing firm in Vietnam stated in the Certificate of registration of auditing practice;

b) Full-time labor contract at the auditing firm, branches of foreign auditing firms in Vietnam expires or is terminated or there are changes leading to no longer guarantee as labor contract work full time according to regulations;

c) The work permit in Vietnam of the foreign practicing auditor is invalid or no longer valid;

d) Starting or suspending participation as an individual as legal representative, director (deputy director), chairman of the board of directors, chairman of the board of members, chief accountant (or sub) accountant responsibility), accountants, internal auditors or other titles at units, organizations other than the auditing firms or when there is a change in working time, titles at those units;

dd) Auditing firm is terminated, dissolved, bankrupt, divided, split, merged, consolidated, or changed form of ownership;

e) There is a request of the Ministry of Finance to provide periodic or irregular information related to its audit practice.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on practicing auditors notifying or reporting 15 days or more behind schedule than the time limit prescribed to the Ministry of Finance when:

a) No longer working and terminating the full-time labor contract at the auditing firm, branch of foreign auditing firm in Vietnam stated in the Certificate of registration of auditing practice;

c) The work permit in Vietnam of the foreign practicing auditor is invalid or no longer valid;

d) Starting or suspending participation as an individual as legal representative, director (deputy director), chairman of the board of directors, chairman of the board of members, chief accountant (or sub) accountant responsibility), accountants, internal auditors or other positions at units, organizations other than the auditing firms or when there is a change in working time, titles at those units;

dd) Auditing firm is terminated, dissolved, bankrupt, divided, split, merged, consolidated, or changed form of ownership;

e) There is a request of the Ministry of Finance to provide periodic or irregular information related to its audit practice.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on practicing auditors who fail to notify or report according to regulations to the Finance Ministry when:

a) No longer working and terminating the full-time labor contract at the auditing firm, branch of foreign auditing firm in Vietnam stated in the Certificate of registration of auditing practice;

c) The work permit in Vietnam of the foreign practicing auditor is invalid or no longer valid;

d) Starting or suspending participation as an individual as legal representative, director (deputy director), chairman of the board of directors, chairman of the board of members, chief accountant (or sub) accountant responsibility), accountants, internal auditors or other positions at units, organizations other than the auditing firms or when there is a change in working time, titles at those units;

dd) Auditing firm is terminated, dissolved, bankrupt, divided, split, merged, consolidated, or changed form of ownership;

e) There is a request of the Ministry of Finance to provide periodic or irregular information related to its audit practice.

Section 9. ACTS OF VIOLATION OF REGULATIONS ON QUALITY CONTROL OF AUDITING SERVICES

Article 68. Penalties for violations of regulations on audit service quality control of auditing firms, branches of foreign auditing firms

1. A warning shall be imposed on auditing firms that commit one of the following acts:

a) Submit the report on the result of self-inspection of audit service quality to the Ministry of Finance and the State Securities Commission less than 15 days behind the prescribed time limit;

b) Submit the report on solutions to remedy errors and implement the recommendations of the inspection team to the inspection agency and the professional organization on audit less than 15 days behind schedule;

c) To make reports at the request of the Ministry of Finance or the State Securities Commission on the independent audit activities less than 15 days behind schedule.

2. A fine of between VND 5.000.000 and 10.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Submitting 15 days or more behind schedule than the set time Report on result of self-inspection of audit service quality to the Ministry of Finance and the State Securities Commission;

b) Submitting 15 days or more later than the prescribed time limit the report on solutions to remedy errors and implementation of recommendations of the inspection team to the inspection agency and the professional organization on audit;

c) Report 15 days or more later than the prescribed time limit or report incomplete at the request of the Ministry of Finance or the State Securities Commission on independent audit activities;

d) Failure to provide information and documents at the request of competent agencies or organizations in the course of audit quality control.

3. A fine of between VND 10.000.000 and 20.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Failure to submit a report on the result of self-inspection of audit service quality to the Ministry of Finance and the State Securities Commission;

b) Failure to submit reports on solutions to remedy errors and implementation of recommendations of inspection teams to inspection agencies and professional organizations on audit;

c) Failure to report as required upon request of the Ministry of Finance or the State Securities Commission on independent audit activities;

d) Failure to provide information, documents at the request of the competent agency or organization in the course of audit quality control.

4. A fine of between VND 20.000.000 and 30.000.000 shall be imposed on auditing firms that commit one of the following acts:

a) Failure to build a service quality control system for audit services, review services, financial information, other assurance services and related services;

b) Failure to develop quality control policies and procedures for each audit;

c) Failing to organize the implementation of service quality control for audit services, review services, financial information, other assurance services and related services;

d) Failure to implement quality control policies and procedures for each audit;

dd) Providing inaccurate or impractical information and documents for competent agencies and organizations in the audit quality control process.

e) Failure to explain, cooperate with competent agencies, organizations in the process of audit quality control;

g) Failure to arrange practicing auditors and relevant persons to work with the inspection team;

h) Failure to sign the inspection report immediately upon the end of the inspection.

5. Additional sanctioning forms:

Deprivation of the right to use the Certificate of eligibility to provide audit services for a period from 01 month to 03 months from the effective date of the sanctioning decision for auditing firms that commit one of the acts violating the provisions of Point d, Clause 3, Point dd, Point e, Clause 4 of this Article.

Chapter IV.

COMPETENCE TO MAKE RECOGNITION AND HANDLING OF ADMINISTRATIVE VIOLATIONS IN ACCOUNTING AND INDEPENDENT AUDITING

Article 69. Competence to make records of administrative violations in the field of accounting and independent audit

Persons competent to make records of administrative violations in the field of accounting and independent audit include:

1. Persons competent to sanction administrative violations in the domain of accounting and independent auditing specified in Articles 70 and 71 of this Decree.

2. Civil servants, public employees, officers of the people's police and people's army officers on duty and on duty according to legal documents or administrative documents promulgated by competent agencies or persons Executives have the right to make written records of administrative violations within the scope of performing their assigned tasks and tasks.

Article 70. The financial inspector's competence to sanction administrative violations

1. Financial inspectors at all levels have the right to sanction warnings in the domain of accounting and independent auditing.

2. The Chief Inspector of the Finance Service has the right to sanction administrative violations in the field of accounting and independent audit as follows:

a) Caution;

b) Impose a fine up to VND 25.000.000;

c) Confiscate material evidences of the administrative violations with a value not exceeding the fine level specified at Point b of this Clause.

d) Deprivation of the right to use the accounting service registration certificate, the audit practice registration certificate, the certificate of eligibility to provide accounting and audit services for a definite period or suspending the operation term.

dd) Enforce the remedial measures mentioned in Article 5 of this Decree.

3. The Chief Inspector of the Finance Ministry has the power to sanction administrative violations in the domain of accounting and independent audit as follows:

a) Caution;

b) Impose a fine up to VND 50.000.000;

c) Confiscation of material evidences of administrative violations;

d) Deprivation of the right to use the accounting service registration certificate, the audit practice registration certificate, or the certificate of eligibility to provide accounting and audit services for a definite time or suspension of operation time moving;

dd) Enforce the remedial measures mentioned in Article 5 of this Decree.

Article 71. Competence to sanction administrative violations of the People's Committees at all levels

1. Presidents of the People's Committees of communes, wards and townships (collectively referred to as communes) have the right to sanction administrative violations in the accounting domain as follows:

a) Caution;

b) Impose a fine up to VND 5.000.000;

c) Confiscate material evidences of the administrative violations with a value not exceeding the fine level specified at Point b of this Clause.

2. Presidents of the People's Committees of districts, urban districts, towns and provincial cities (collectively referred to as district level) are entitled to sanction administrative violations in the accounting domain as follows:

a) Caution;

b) Impose a fine up to VND 25.000.000;

c) Confiscate material evidences of the administrative violations with a value not exceeding the fine level specified at Point b of this Clause;

d) Deprive of the right to use the Certificate of Accounting Practitioner Registration, the Certificate of eligibility to provide accounting services for a definite period or suspend its operation for a definite period;

dd) Enforce the remedial measures mentioned in Article 5 of this Decree.

3. Presidents of the People's Committees of provinces and centrally-run cities (collectively referred to as the provincial level) have the right to sanction administrative violations in the field of accounting and independent audit as follows:

a) Caution;

b) Impose fines of up to VND 50.000.000 on individuals;

c) Confiscation of material evidences of administrative violations;

dd) Enforce the remedial measures mentioned in Article 5 of this Decree.

Chapter V

TERMS ENFORCEMENT

Article 72. Terms enforcement

1. This Decree takes effect from March 01, 5.

2. This Decree replaces the Government's Decree No. 105/2013 / ND-CP dated September 16, 9 on sanctioning of administrative violations in the field of accounting and independent audit.

3. Apply the provisions of this Decree to the handling of violations occurring before the effective date of this Decree as follows:

In case this Decree does not provide for legal liability or provides for lighter liability for the violation before the effective date of this Decree, only then discovered or is being considered and resolved. This Decree will apply.

4. For decisions sanctioning administrative violations in the domain of accounting and independent audit, which have been issued or have been completely implemented before the effective date of this Decree, individuals and organizations are subject to sanctioning administrative violations and complaints, the provisions of the Government's Decree No. 105/2013 / ND-CP dated September 16, 9 on sanctioning of administrative violations in the field of accounting and independent audit shall apply. up to deal with.

Article 73. Responsible for implementing

1. The Minister of Finance shall have to guide and organize the implementation of this Decree.

2. Ministers, heads of ministerial equivalent bodies, Government bodies, and chairmen of people's committees of provinces and cities under central authority shall be responsible for implementation of this Decree./.

category

-ADMINISTRATIVE PENALTY

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