Decree No. 90/2025/ND-CP dated April 14, 2025 on amendments to Decree No. 17/2012/ND-CP on elaboration of and guidelines for implementation of certain articles of The law on independent audit

DECREE

ON AMENDMENTS TO DECREE NO. 17/2012/ND-CP DATED MARCH 13, 2012 OF THE GOVERNMENT ON ELABORATION OF AND GUIDELINES FOR IMPLEMENTATION OF CERTAIN ARTICLES OF THE LAW ON INDEPENDENT AUDIT

Pursuant to the Law on Organization of the Government dated February 18, 2025;

Pursuant to the Law on Independent Audit dated March 29, 2011;

Pursuant to the Law on amendments the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserve, and the Law on Handling of Administrative Violations dated November 29, 2024;

At the request of the Minister of Finance;

The Government hereby promulgates the Decree on amendments to Decree No. 17/2012/ND-CP dated March 13, 2012 of the Government on elaboration of and guidelines for implementation of certain articles of the Law on Independent Audit.

Article 1. Amendments to Clause 1 and addition of Clauses 7 and 8 to Article 15 of Decree No. 17/2012/ND-CP are as follows:

1. Add point dd) after point d Clause 1 as follows:

“dd. Other large-scale enterprises as prescribed in point dd Clause 1 Article 37 of the Law on Independent Audit that meet at least 2 out of the following 3 criteria: having an average annual number of employees participating in social insurance of over 200 persons; having an annual total revenue of over VND 300 billion; having total assets of over VND 100 billion.”

2. Add Clause 7 as follows:

“7. Principles for determining the average annual number of employees participating in social insurance, annual total revenue, and total assets of the entities specified in point dd Clause 1 of this Article are as follows:

a) The number of employees participating in social insurance includes all employees who are managed, employed, and paid salaries or wages by the entity and are enrolled in social insurance in accordance with the law on social insurance;

b) The average annual number of employees participating in social insurance shall be calculated by dividing the total number of such employees in all 12 months of the preceding year by 12;

c) The number of employees participating in social insurance in a month shall be determined as of the end of the month and based on the social insurance payment document submitted by the enterprise to the social insurance authority;

d) Annual total revenue shall be determined based on the annual financial statement of the preceding year prepared by the entity in accordance with the Law on Accounting;

dd) Total assets shall be determined as of the end of the financial year based on the annual financial statement of the preceding year prepared by the entity in accordance with the Law on Accounting.”.

3. Add Clause 8 immediately following Clause 7 as follows:

“8. Enterprises subject to the provisions of point dd Clause 1 of this Article that fail to meet the criteria for being large-scale enterprises for two consecutive years shall not be subject to mandatory audit until such time as they again meet the criteria as prescribed.”.

Article 2. Amendments to Clause 2 Article 16 of Decree No. 17/2012/ND-CP are as follows:

“2. A practicing auditor shall not sign audit reports for a single audited entity for more than 05 consecutive years.”.

Article 3. Entry into force

This Decree comes into force as of the date of signing.

Article 4. Transitional provisions

1. Practicing auditors who have signed audit reports for an audited entity prior to January 01, 2025 may continue to sign audit reports for such entity in accordance with Article 2 of this Decree.

2. Enterprises with total revenue and total assets as shown in the financial statements for the 2024 fiscal year, and employing an average number of employees participating in social insurance in 2024 that satisfy the criteria prescribed in Clause 1 Article 1 of this Decree, shall be subject to mandatory audit for their financial statements from the 2025 fiscal year onwards.

Article 5. Implementation responsibilities

Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, and Chairpersons of the People’s Committees of provinces and centrally-affiliated cities shall implement this Decree./.