Can practicing auditors audit in a company in which they have shares in Vietnam?

Can practicing auditors audit in a company in which they have shares in Vietnam?

Pursuant to Article 19 of the Law on Independent Auditing 2011 stipulates the cases that practicing auditors are not allowed to audit as follows:

Practicing auditors are not allowed to audit in the following cases:

1. as members, founding shareholders, or purchasing shares or capital contribution in the audited unit;

2. as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

3. as those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units for the audited financial year;

4. within two years from the time of resigning the managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

5. as those who are doing or have done in the preceding year the work of book keeping, making financial statements or internal audit for the audited units;

6. as those who are doing or have done in the preceding year the service which is different from the services specified in clause 5 of this Article affecting the independence of practicing auditors in accordance with provisions of professional ethical standards of accounting and auditing;

7. with their parents, spouse, child, natural brother, sister who have remarkable direct or indirect financial interests in the audited units in accordance with provisions of professional ethical standards of accounting, auditing or those who hold managerial, administrative positions, members of the inspection committee or chief accountant of the audited units;

8. Other cases in accordance with regulations of law.

Thus, practicing auditors are not allowed to audit companies in which they have shares or contribute capital in Vietnam. This is an illegal act, the audit can seriously affect the company's audited financial statements and work.

How many actual working time as auditor do I have to do before I can register for audit practice in Vietnam?

According to Article 15 of the Law on Independent Auditing 2011, registration of practicing audit is as follows:

1. Person who meets fully the following conditions is registered for audit practice:

a) Being auditor;

b) Having actual working time as auditor for full thirty-six months or more;

c) Participating fully in the programs of updating knowledge.

2. Person who meets fully the conditions specified in clause1 of this Article shall be entitled to register the audit practice and to be granted the certificate of registration of auditing practice in accordance with regulations of the Ministry of Finance.

3. Applicant for certificate of registration of auditing practice must pay the fee as prescribed by law.

4. Certificate of registration of auditing practice is valid only when granted person having the labor contract as full-time for an auditing firm, the branch of foreign auditing firm in Vietnam.

According to this Article, a person who wants to register for practicing audit must have actual working time as auditor for full thirty-six months or more (equivalent to 3 years) and satisfy other conditions specified above in Vietnam.

What are rights of practicing auditors when practicing in enterprises in Vietnam?

Article 17 of the Law on Independent Auditing 2011 stipulates rights of practicing auditors as follows:

When practicing in the auditing firms, branch of foreign auditing firms in Vietnam, practicing auditors have the following rights:

1. To practice audit in accordance with regulations of this Law;

2. To be independent on professional skill;

3. To request the audited unit to provide adequate and timely necessary information, documents and explain the issues related to the audit contents; to request inventory of assets, debt comparison of the audited unit related to the audit contents; to inspect all records and documents related to economic and financial activities of the audited unit inside and outside of the unit during the course of audit;

4. To inspect and confirm the economic, financial information related to the audited unit inside and outside of the unit during the course of audit.

5. To request the concerned organizations and individuals to provide necessary documents and information related to the contents of the audit through the audited unit.

6. Other rights in accordance with regulations of law.

Thus, auditors have the rights specified above when performing audits at enterprises in Vietnm.

Best Regards!