Do accounting service providers have to buy professional liability insurance in Vietnam?

1. Do accounting service providers have to buy professional liability insurance in Vietnam?

Pursuant to Article 28 of Decree 174/2016/ND-CP stipulating professional liability insurance as follows:

1. An accounting service provider must buy professional liability insurance, which is the source for paying compensation for its clients in case of damage caused by its accounting practitioners.

2. Professional liability insurance must be bought for an accounting practitioner within 60 days from the day on which he/she is granted the Certificate of Accounting Service Registration.

The cost of professional liability insurance may be aggregated with operating cost as long as it is supported by valid invoices and documents.

3. The accounting service provider and insurer may reach an agreement on the insurance premium, which must not fall below the service charges imposed by the accounting service provider.

Thus, for your company providing accounting services, it is mandatory to buy professional liability insurance, in order to have a source for paying compensation for its clients in case of damage caused by its accounting practitioners in Vietnam.

2. Which agency are accounting service providers in Vietnam responsible to?

According to Article 24 of Decree 174/2016/ND-CP stipulating provision of accounting services of audit firms and audit practitioners as follows:

1. The audit firm that fully satisfies requirements for provision of audit services prescribed by regulations of law on independent audit may provide accounting services. An audit firm that no longer satisfies requirements for provision of audit services prescribed by regulations of law on independent audit may not provide accounting services.

2. An audit practitioner that fully satisfies requirements for audit practice prescribed by regulations of law on independent audit may provide accounting services. An audit practitioner that no longer satisfies requirements for audit practice prescribed by regulations of law on independent audit may not provide accounting services.

3. Audit firms and audit practitioners are responsible to the Ministry of Finance for their accounting service quality.

According to this Article, enterprises providing accounting services are responsible to the Ministry of Finance for their accounting service quality in Vietnam.

Best Regards!